There’s been a lot of discussion around launching new markets on Perpetual Protocol but one of the things that we need to start understanding is how do we decide which markets to launch?
One of the key items that we need to consider here is the potential trading volume - if there isn’t enough traded volume then this could lead to a drain in the insurance fund (if the index price vs market price deviates too greatly then the funding rate may increase significantly).
Some questions then arise:
- How do we determine if a market has enough potential volume?
- Is the token mainly traded on central exchanges and will those users use DEX exchanges?
- How do we quantify the potential trading volume?
I’m sure there are many more questions we would need to answer but I assume most of you will get the gist of it. The end goal of this discussion is for governance to try and start to formulate some form of framework that we can use to evaluate markets and then launch them as the community wishes!