The sequel to Palazzo Mistero has been deployed to Vega mainnet. To continue participating, node operators will need to upgrade as soon as possible. This release introduces a range of protocol updates as well as eagerly awaited front-end features. The Palazzo Mistero release enhanced the protocol’s support for perpetuals with…

VEGA

<p>The sequel to Palazzo Mistero has been deployed to Vega mainnet. To continue participating, node operators will need to upgrade as soon as possible. This release introduces a range of protocol updates as well as eagerly awaited front-end features.</p><img src="https://sosovalue.s3.us-west-2.amazonaws.com/sosovalue/web3image/24/04/06/ak5htmytewow.png" alt=""/><p>The <a href="https://blog.vega.xyz/the-palazzo-mistero-release-7a3c3e9d3cd1" target="_blank">Palazzo Mistero release</a> enhanced the protocol’s support for perpetuals with improvements to oracle data sourcing and mark price calculations, leading to more accurate and stable funding rates across all perpetual futures markets. Building upon this, Palazzo Mistero II introduces a suite of highly anticipated user-facing features and protocol improvements, designed to significantly enhance the trading experience on <a href="https://console.vega.xyz/" target="_blank">Console</a>.</p><h3>Simplified Wallet Connection</h3><p>Connecting to <a href="https://console.vega.xyz/" target="_blank">Console</a> and trading permissionlessly is now even simpler and faster:</p><img src="https://sosovalue.s3.us-west-2.amazonaws.com/sosovalue/web3image/24/04/06/3rzqtmytew52.png" alt=""/><h3>Margin Isolation</h3><p>The protocol now enables users to manage their leverage through two options: the existing standard cross-margin mode and a new isolated margin mode which allows per-market leverage control.</p><p>Traders have the flexibility to switch between these margin modes (provided they meet the margin requirements for their potential position in the new mode).</p><img src="https://sosovalue.s3.us-west-2.amazonaws.com/sosovalue/web3image/24/04/06/bcs9tmytewdn.png" alt=""/><li>Cross margining offers a capital-efficient way to use margin, especially when trading across multiple markets with the same settlement asset. The market reserves the smallest amount of funds required at any given time, and returns any unneeded portion of the margin balance.</li><img src="https://sosovalue.s3.us-west-2.amazonaws.com/sosovalue/web3image/24/04/06/ntbptmytew9h.png" alt=""/><li>Isolated margin allows traders to control the amount of funds they allocate for margin, enabling them to choose their preferred level of leverage at the expense of lower capital efficiency and losing the ability to offset losses on one market with gains on another (correlated) market. The margin amount remains fixed unless positions are amended. However, if the market moves against the position, there’s a higher risk of it being closed out more rapidly because other funds in the user’s account are not available to provide additional margin.</li><img src="https://sosovalue.s3.us-west-2.amazonaws.com/sosovalue/web3image/24/04/06/ibvxtmytewm4.png" alt=""/><h3>Take Profit / Stop Loss</h3><p>The <a href="https://blog.vega.xyz/mainnet-v0-72-14-deployment-road-to-cosmic-elevator-cc826477d11f" target="_blank">Cosmic Elevator</a> release brought improved risk management to traders on Vega via the addition of Stop Orders to the deal ticket as a new order type. From the Palazzo Mistero II release these will be available directly from the deal ticket, allowing users to very easily set a take profit and stop loss for their entire order size as part of their main order.</p><p>Further improvements are planned in the coming weeks as position based take profit / stop loss will be made available, allowing users to also create and manage multiple take profit and stop loss orders from the position table.</p><img src="https://sosovalue.s3.us-west-2.amazonaws.com/sosovalue/web3image/24/04/06/fy1ftmytew8v.png" alt=""/><h3>Size Slider</h3><p>SLIDOOOOOOOORRRRRRRRR! The community asked, the Vega project team listened! Traders will now be able to size their orders via the new size slider in the deal ticket. It’s important to note that the maximum size allowed by the slider is an estimate, if the leverage or balance available changes, opening a position of close to the maximum indicated size may fail.</p><img src="https://sosovalue.s3.us-west-2.amazonaws.com/sosovalue/web3image/24/04/06/4gt3tmytewez.png" alt=""/><h3>Protocol Improvements 🫡</h3><p>Capped rewards: in order to mitigate against excessive reward farming, the amount of any given reward scheme paid out to each eligible key can be to some multiple of taker fees paid, i.e. a reward cap of 2 would mean users can only earn back twice what they have paid in fees as rewards. This can be set for each reward by the creator, for example when making a <a href="https://docs.vega.xyz/mainnet/tutorials/proposals/asset-transfer-proposal" target="_blank">governance proposal to fund a new reward</a> from the<a href="https://docs.vega.xyz/testnet/concepts/governance/treasury" target="_blank"> on-chain treasury</a>.</p><p><strong>Price monitoring engine updates:</strong> the price monitoring engine has now been updated to use the new mark price methodology introduced in Palazzo Mistero. Price monitoring bounds are now based on the actual mark price evolution within the market rather than trade prices as before. If either a potential trade from a persistent order, or a mark price update breaches the price monitoring bounds, the market will go into auction to ensure the price move is valid and avoid unnecessary liquidations or large mark-to-market P&L swings. Price monitoring is an important tool to ensure markets can safely operate with lower liquidity and where Vega is the price forming venue, and the team continues to improve the protocol to balance market safety user experience.</p><p><strong>Book price updates:</strong> the “book price” used for mark price and funding calculations is no longer updated during an auction. Now, when a market is in a monitoring auction the book price is undefined with staleness increasing with time. The book price is then set at auction uncrossing to the price of the uncrossing trade. The mark price is only recalculated when the auction exits.</p><p><strong>Configurable tick size: </strong>markets now support a configurable price ‘tick’ size, allowing price increments used for orders and trading to be varied rather than fixed based on the number market decimals. This allows a market to react to large changes in value by changing the size of the smallest price increment. Previously it would have been necessary to close a market through governance and reopen it with different decimals.</p><p><strong>Margin calculations: </strong>margin calculations no longer include an order book slippage factor. This did serve a particularly useful function given the liquidation algorithm and presence of price monitoring, and it made margin estimates volatile and different to reason about. This change simplifies the system and makes the margin required to open a position more understandable.</p><p>🏰 For more details read the v<a href="https://docs.vega.xyz/mainnet/releases/overview" target="_blank"> 0.75.8 </a>release notes 🏰</p><h3>About Vega Protocol</h3><p><a href="https://vega.xyz/" target="_blank">Vega</a> is Web3’s native derivatives layer. The community is creating the building blocks for a new financial system. One that puts control of the markets, the products, and the fees in the community’s hands. Vega is a decentralised network that supports the creation of derivatives markets for a variety of crypto assets. Vega’s aim is to FreeTheMarkets, by removing centralised gatekeepers, enabling a permissionless market creation and trading experience for all.</p><p>Join the community
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