SNXweave Weekly Recap 125

https://blog.synthetix.io/snxweave-weekly-recap-125/

February 14, 2024

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.

👉TLDR

  • Currently $150,000 in daily perps volume on Andromeda and $2 million of cumulative trading volume, with $1 million in LP-backed collateral
  • Next target for scaling Base Andromeda is $20 million per day and $10+ million in LP-backed collateral
  • Kwenta will be adding a way to access V3 in their UI by the end of February
  • Infinex will be opening deposits in the next week and trading will begin to ramp up in the next month
  • The legacy market migration plan (which will migrate L1 SNX to V3 using the V3 legacy market) is being prepared
  • The Perps V3.1 interest rate audit feedback is being reviewed
  • SIP to launch L1 Perps is entering its second audit this week
  • JUP listing is still waiting for the oracle to be ready
  • The SIP to move elections fully on-chain is in audit
  • Kain released another blog post that updated his vision for the Synthetix 2024 roadmap — more below
  • SIP-354: Perps V3 Asymmetric Funding presentation recap
  • SIP-2054: List PENDLE on SNX Perps V2 presentation recap
  • SIP-357: Chainlink Node with Staleness Check presentation recap
  • SIP-358: Introduce ‘lockedOiMultiple’ to Perps V3 presentation recap
  • SIP-359: Perps V3 — Bypass Checks on Position Risk Reduction presentation recap

Spartan Council and SIP updates

Present at the February 7, 2024 Spartan Council Weekly Project Sync:
Spartan Council: Adam, bilby, cyberduck, Jackson, Kain, Millie, Snax Frens
Core Contributors: Afif, Cavalier, David, joey, jz, KALEB, Matt, meb, Mike, Steve, troy

Starting off with some numbers — right now there is about $150,000 in daily perps volume on Andromeda and $2 million of cumulative trading volume, with $1 million in LP-backed collateral. The next immediate target for scaling Base Andromeda is $20 million per day and $10+ million in LP-backed collateral.

With $1 million in open interest capacity, there is room for integrators to open up to more users. Before the end of the month, Kwenta will be adding a way to access V3 in their UI and make an announcement to traders. Some of the other upgraded features that they plan to offer alongside V3 are roughly 6 weeks out. Starting sometime in the next week, Infinex will be opening deposits and trading will begin to ramp up in the next month.

Next, the legacy market migration plan (which will migrate L1 SNX to V3 using the V3 legacy market) is being prepared. The Perps V3.1 interest rate audit feedback is being reviewed, and the SIP to launch L1 Perps is entering its second audit this week. Most of the feedback on the V2 to V3 (from L2 to L1) migration process has been addressed.

In other updates, the JUP listing is still waiting for the oracle to be ready (the vote will be set up, then parameters will be set in an SCCP), and the SIP to move elections fully on-chain is in audit.

Next, Kain released another blog post that updated his vision for the Synthetix 2024 roadmap and built on his previous October post, which proposed a series of market fit experiments. The new post reiterates the measures of success for the Andromeda release: are LPs willing to collateralize Synthetix with non-SNX collateral and are traders outside of the Synthetix ecosystem willing to trade Synthetix perps?

It acknowledges that the renewed interest in Base creates the optimal conditions for testing on both of these questions. He also touches on the planned L1 ETH perp and the role it can play in scaling new stablecoin designs. The rest of the post details what an SNX chain might look like and be used for in the future.

There were also several SIP presentations last week, so let’s briefly review each of them:

SIP-354: Perps V3 Asymmetric Funding

  • Presented by Sunny and Afif, this SIP proposes introducing an asymmetric funding rate that adds to the net cost for traders when utilization of open interest is high
  • Such a mechanism is especially useful in isolated deployments without the benefit of the deep liquidity pools that Perps V2 enjoyed, and is essential in order to scale liquidity from scratch on a new deployment
  • Afif said, for all intents and purposes, V2 liquidity has essentially been infinite since the open interest has never reached even close to what the SNX debt pool can support
  • This additive funding rate both incentivizes new LP collateral to enter the market and encourages the closing of positions in a timely manner
  • Since V3 also introduces a collateral lock mechanism, which prevents LPs from withdrawing capital that is in active use, the asymmetric funding rate discourages the opening of new positions beyond a certain LP-use threshold to help ensure some collateral is always eligible for withdrawal
  • The rates would be effectively zero as utilization increases to 80%, then sharply between 80–100% utilization if all of the LP collateral is in use by the markets
  • If LPs try to abuse this dynamic, another option is to add fees for staking/unstaking
  • Jackson asked if this would make Perps V3 less attractive than other centralized offerings, and Afif highlighted that this is likely only a symptom of early stage liquidity
  • Once the pool reaches the point where it can support all of the OI, this fee is essentially eliminated and the fact that it goes directly to LPs should incentive more collateral to enter the system

SIP-2054: List PENDLE on SNX Perps V2

  • Burt explained that there is Binance Perps liquidity and this listing seeks to capitalize on a big trend in DeFi (yield trading on top of ETH restaking)

SIP-357: Chainlink Node with Staleness Check

  • This SIP proposes incorporating a staleness check on the Chainlink node used for SNX staking in the V3 system
  • This is already a mechanism that exists in V2 but it wasn’t incorporated in V3 at launch
  • This was pointed out by an integrator so the change is being made now

SIP-358: Introduce ‘lockedOiMultiple’ to Perps V3

  • V2 had endorsed liquidators, but in V3 anyone can liquidate eligible positions
  • Rather than liquidating large positions in one transaction, there is a rate limit to reduce market impact from these sales
  • This SIP proposes briefly locking LP collateral during this period where large positions are in the process of being liquidated
  • The main purpose for this SIP is to solve the timing problem between liquidations and reward distribution

SIP-359: Perps V3 — Bypass Checks on Position Risk Reduction

  • This SIP aims to improve the user experience by allowing users to reduce a position regardless of the margin requirements
  • Currently, there is a bit of a UX issue with a check that will not allow a user to reduce their position size without available margin to support the transaction
  • This is unnecessary since a reduction in the position size is a net reduction in risk and requires no available margin

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SIP/SCCP status tracker:

SIP-2053: List JUP on SNX Perps V2, Status: draft

SIP-360: Synthetix V3 Cross-chain Elections System, Status: draft

SIP-354: Perps V3 Asymmetric Funding, Status: draft

SIP-2054: List PENDLE on SNX Perps V2, Status: draft

SIP-357: Chainlink Node with Staleness Check, Status: draft

SIP-358: Introduce ‘lockedOiMultiple’ to Perps V3, Status: draft

SIP-359: Perps V3 — Bypass Checks on Position Risk Reduction, Status: draft

SNXweave Weekly Recap 124

https://blog.synthetix.io/snxweave-weekly-recap-124/

February 7, 2024

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.

👉TLDR

  • CCs are preparing the rewards distributor mechanism for STP-14’s USDC LP incentives
  • No major issues have been reported from integrators so it may be time to start directing traders towards Base
  • Kwenta is planning to scale up the invite-only testing phase before opening up V3 on Base as the default experience for all Kwenta traders
  • The limited use at this point is a user onboarding issue rather than a limitation of what is currently deployed (there is plenty of OI room for traders that is not being used)
  • Perps V3 OI caps are now $1 million and trades are happening by 2 integrators. Once Perps V3.1 and V3.2 are shipped, OI caps can be dramatically lifted.
  • SC discussed the 2024 roadmap again — they talked about deploying to future chains and creation of SNX app chain
  • Other discussion: Duck said as V3 scales on Base there will be less demand for sUSD on V2, which may impact the peg
  • SIP-2053: List JUP on SNX Perps V2 presentation recap

Spartan Council and SIP updates

Present at the January 31, 2024 Spartan Council Weekly Project Sync:
Spartan Council: Adam, bilby, cyberduck, Jackson, Kain, Millie, ml_sudo, Snax Frens
Core Contributors: Afif, Cavalier, David, joey, KALEB, Matt, meb, Mike, Nikita, troy

First up, for our work in progress update, 900,000 of the $1 million USDC LP cap has been filled, and the CCs are now preparing the rewards distributor mechanism for STP-14’s USDC LP incentives. No major issues have been reported from integrators so it may be time to start directing traders towards Base. Kwenta is planning to scale up the invite-only testing phase before opening up V3 on Base as the default experience for all Kwenta traders. The TLDR here is basically that the limited use at this point is a user onboarding issue rather than a limitation of what is currently deployed (there is plenty of OI room for traders that is not being used).

As for markets, Perps V3 OI caps are now $1 million and trades are happening by 2 integrators. Once Perps V3.1 and V3.2 are shipped, OI caps can be dramatically lifted.

Next up, the Spartan Council briefly reviewed the roadmap again, which we discussed in last week’s recap. There was further discussion on deploying to future chains and creation of SNX app chain. From an offline conversation with Cav, Kain explained some of the prerequisites for deploying to another chain. The whole point behind the Andromeda release was to conduct experiments that would inform potential future deployments.

The first is whether there is any interest in LPing USDC, and the second is the trading demand for Synthetix contracts backed by that USDC collateral. Kain said the big open question for him is what percentage of active traders are from outside of the Synthetix community — there are the traders who are likely to be less concerned with the chain that Synthetix is deployed on and the collateral backing the system, and more concerned with the quality of the product).

Once the experiments validate whether there is demand for trading, then the Spartan Council and CCs can begin to evaluate what a post SNX collateral Synthetix should look like. App chain development is also contingent on Andromeda experiment data. As far as future experiments, there have been a number of suggestions to deploy to other chains, such as Arbitrum, and possibly experiment with more risky collateral and margin types. Adam cautioned that even in an isolated deployment environment, the Synthetix brand would be tied to all of these deployments and any issues may be optically damaging for the protocol even if LP risk was contained.

In other discussion, Duck brought up the fact that as V3 scales on Base, there will be less demand for sUSD on V2 which may impact the peg. There is a big sUSD arbitrage opportunity from L1 to Optimism that is not being efficiently closed. Kain said he was able to run the cycle a couple of times and estimates the APY was near 40%. The big problem, however, is that it’s not an easy process, and automating it would require a level of sophistication that most sUSD holders do not have. The CCs are developing an interface to help with this and there may need to be additional incentives from the TC to make it worthwhile for smaller sUSD holders.

There was also one SIP presentation last week, SIP-2053 to List Jupiter (JUP) on Perps V2. This token launched on February 1st so Kaleb explained that there was no active trading data at the time of the presentation to support the listing, but he expects it will have the same demand as BONK. This would not go live until the markets are active on centralized exchanges, and this asset will also be added to the Risk Control Module in the SCCP configuration.

Grants Council

Present at the February 1, 2024 Grants Council meeting:
Grants Team: ALEXANDER, es MC, Mike, MoneyManDoug, Synthquest

In Grants Council updates, the team had a meeting last week where they discussed what the future of the GC should look like. They also went over some of their ongoing initiatives, including the sUSD bridge, burn bot, and watcher page. The GC is close to confirming that the native sUSD bridge works on the staking website, and the burn bot has been updated to include all-time SNX burns — you can see weekly/all-time burns in Discord now.

The Watcher page will also soon include totals for open positions, filter tabs for closed and liquidation positions, and historical account total trading history. Once those upgrades are complete, the Council will also be adding a staking tab to view staking information about an address. This is intended to start framing out a one stop shop for V3 (staking and perps trading).

Ambassador Council

Present at the January 30, 2024 Ambassador Council meeting:
Ambassadors: GUNBOATs, Kevin, Mastermojo, Matt, Westie

Lastly, in Ambassador Council updates, the Ambassadors posted their most recent Project Spotlight on Twitter, where they highlighted dHEDGE, which is a non-custodial asset management protocol where users retain control of their assets while still allowing others to manage the capital. Be sure to check out the spotlight on Twitter!

The team has also been continuing to discuss the upcoming Optimism Grants season that ends February 14th, as well as the recent Optimism Mission Requests that they review as OP delegates. Lastly, they went over Matt’s recent call with Optimism — you can check out the notes to the call here.


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SIP/SCCP status tracker:

STP-14: Incentivize USDC LP on Base Andromeda, Status: draft

SIP-2053: List JUP on SNX Perps V2, Status: draft

SNXweave Weekly Recap 123

https://blog.synthetix.io/snxweave-weekly-recap-123/

January 31, 2024

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.

👉TLDR

  • Key milestones from 2024 draft roadmap:

1. Scaling base volume to $20 million/day
2. Deciding on a new chain to deploy V3 and Perps to
3. Converting governance to be fully on-chain
4. Releasing L1 Perps
5. Beginning the migration of SNX from V2X

  • Spartan Council bridging discussion
  • SIP-355: Add extra views to Spot Markets presentation recap
  • SIP-2052: List CVX on SNX Perps V2 presentation recap
  • SIP-2050: Deprecate sINR Synth presentation recap
  • SIP-2051: Deprecate Perp Markets with 0 Max Market Value presentation recap
  • SCCP-2077: Activate the MMV Risk Control Module presentation recap

Spartan Council and SIP updates

Present at the January 24, 2024 Spartan Council Weekly Project Sync:
Spartan Council: bilby, cyberduck, Jackson, Kain, Millie, ml_sudo, Snax Frens
Core Contributors: Afif, Ana, Cavalier, David, KALEB, Leo, Matt, meb, Mike, Regina, Steve, troy

First up, a draft roadmap for the year was released, and the key milestones include:

  • Scaling base volume to $20 million/day
  • Deciding on a new chain to deploy V3 and Perps to
  • Converting governance to be fully on-chain:

Jackson asked if this was really a priority given that it doesn’t move the dial much for the end user (traders) of the Synthetix product (Perps). Cav replied saying the further decentralization of governance is something that the protocol has been working towards for a while, and continuing to build on that is an important part of the protocol.

  • Releasing L1 Perps:

This has been in progress for a while, and has already been through one audit and is getting ready for a second. This will be a V3 release, which means there will need to be sufficient collateral on V3 on L1, which may require some incentives. The target right now is roughly $100 million of SNX collateral to make this a functional product for the expected user base — which is approximately 20% of the SNX in the V2 system. Releasing Perps on L1 would also require approving wstETH as margin, which has been requested by potential integrators like Ethena.

  • Beginning the migration of SNX from V2X:

The biggest dependency for V2X to V3 migration is the destination chain.

Cav has a SIP in progress to outline who owns each part of the roadmap and how to properly allocate resources to each piece. There was some concern that the CCs would be stretched even thinner with multiple deployments, but Cav thinks the Treasury Council (TC) can help solve some of these issues. Part of the motivation behind releasing this roadmap was to make more clear exactly what the protocol intends to accomplish over the next year, then put the resources in place to make sure it can get done.

After reviewing the roadmap, the SC discussed bridging. Millie voiced support for potential future isolated deployments, but said he would vote no on any bridging integrations. ML_sudo is in favor of interoperability, but is concerned about security. Jackson thinks the reason that Synthetix is hesitant about bridging is because that’s not an area of expertise for the protocol, so the preference should be to work with providers who are experts.

Next up, there were several SIP presentations last week so let’s briefly review each of them:

SIP-355: Add extra views to Spot Markets

  • Proposed by Leo, this SIP will answer integrator and developer needs for data access by adding view functions for configurations and internal calculations
  • The new views add price data, wrapper data, market owner and market skew

SIP-2052: List CVX on SNX Perps V2

  • This SIP proposes listing Convex Finance (CVX) on Synthetix Perps
  • Burt explained that CVX specifically reached out in support of listing this asset, and the CVX community has a lot of active Kwenta users

SIP-2050: Deprecate sINR Synth

  • Kaleb presented the last few SIPs, starting with this one to deprecate the sINR synth, which has very little open interest (140 sUSD worth)
  • Like other deprecated synths, the price would be frozen at the time of implementation and anyone holding the asset would be able to redeem sUSD at the frozen price

SIP-2051: Deprecate Perp Markets with 0 Max Market Value

  • This SIP proposes deprecating 15 perps markets (voted on for delisting in SIP-2047) in 6 months on July 31st, 2024
  • This would remove them from the futures market manager and allow for the oracle to be deprecated
  • Kaleb explained that the 6-month grace period would allow users ample time to close any positions they have open

SCCP-2077: Activate the MMV Risk Control Module

  • This proposes activating the risk control module, which would allow for the reduction of OI to zero for a predetermined list of markets (outlined in the SCCP)
  • This SCCP is the next step for SIP-2048, which proposed the introduction of this mechanism and was approved with 7 votes in favor
  • This mechanism is for emergency use only during periods of unusual market activity that prevent arbitragers from participating
  • The module will be controlled by a gnosis safe, and the endorsed account is a 3 of n multisig including the deployer and the pDAO (which effectively means it will be controlled by pDAO but directed by the interim risk council)
  • This will eventually be the full responsibility of the risk committee but until the risk committee is formed, this process creates a check between the SC (via the interim risk council) and the pDAO
  • Every new market added will need an additional parameter in the configuration SCCP specifying whether or not it is covered under this module
  • Kain asked about the process on how this would be activated

 — Kaleb explained that there are off-chain monitoring systems that would alert the risk council of any issues

 — The deployer would then prepare the transaction to bring the OI on the problem market to zero

 — The risk council would assess the validity of this issue, then authorize the pDAO to execute the transaction

 — The interim risk council would then brief the SC on what happened and what action was taken


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SIP/SCCP status tracker:

SIP-355: Add extra views to Spot Markets, Status: approved

SIP-2052: List CVX on SNX Perps V2, Status: approved

SIP-2050: Deprecate sINR Synth, Status: implemented

SIP-2051: Deprecate Perp Markets with 0 Max Market Value, Status: approved

SCCP-2077: Activate the MMV Risk Control Module, Status: approved

SNXweave Weekly Recap 122

https://blog.synthetix.io/snxweave-weekly-recap-122/

January 24, 2024

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.

👉TLDR

  • Perps on Base brought in $500,000 in weekly volume in private beta and is ready to slowly begin scaling!
  • SC asymmetric funding rate discussion: ML questioned how the new funding rate differs from the V2 funding rate — read below for an explanation.
  • Asset delisting SIP discussion: Some Council members had reservations about delisting assets, see below.
  • Grants Council update: GC has been working on the sUSD bridge UI, finishing up review of the Discord burn bot to replace the inflation bot, and has started a rework of the UX/UI on the Watcher Page in prep for V3.
  • Ambassador update: AC has been discussing the upcoming Optimism Grants season (Feb 1-Feb 14), future Spartan Spaces, additional “Project Spotlights” for their Twitter series, and finding new lending protocols on Base to list SNX and sUSD. Matt also created an Optimism Mission Request called “Deliver a Best-in-Class Perp Dex on Optimism” and the Council published their latest Ambassador Governance update on Twitter.

Spartan Council and SIP updates

Present at the January 17, 2024 Spartan Council Weekly Project Sync:
Spartan Council: Adam, bilby, cyberduck, Jackson, Kain, Millie, ml_sudo, and Snax Frens
Core Contributors: Afif, Bex, joey, KALEB, Matt, Mike, Nikita, Steve, sunny, troy

Let’s start with a core system update — Perps on Base brought in $500,000 in weekly volume in private beta and is ready to slowly begin scaling! It will still just be BTC and ETH markets with low limits, but the Council just voted for LP cap increases to $1 million USDC — these expanded limits will allow testing to continue with a larger trader base. And OI increases should follow as soon as more LPs delegate capital. For markets, trades are continuing to happen on Base Mainnet by two integrators, and L1 Perps is being prepared for a second audit and testnet.

In other discussion, the Spartan Council discussed asymmetric funding rates. During their call, ML_sudo had a question about the new funding rate and how it differs from the V2 funding rate. There is currently a SIP in draft for this mechanism. Basically, LP capital can generally move in and out freely, but there are certain situations (i.e. where all of the current collateral is required to back the open positions) where there might be a temporary lock on the collateral backing system.

To disincentivize a perpetual state of locked LP collateral, an addition to the funding rate is introduced when OI reaches the point requiring collateral lock. This also encourages the closing of positions, as well as the delegation of additional capital until OI comes back down below that threshold. It can also be thought of as bonus earnings for LPs during those periods where locking collateral is necessary for system health. This wasn’t as necessary in V2 due to the abundance of collateral to support markets, but will be a critical feature in isolated V3 deployments.

Millie asked whether this rate would be market-specific or if it would apply to all markets (supermarket) when active. Afif said it would apply to the supermarket since it’s a single blended risk curve for LPs. The markets with the highest utilization are likely to be markets with the highest rate sensitivity (BTC and ETH), which would encourage more swift wind down positions.

The Spartan Council also revisited the asset delisting SIP during their meeting last week. Duck brought up the fact that it may not be the best idea to delist assets without a clear path for relisting them on V3. Although there is no data to support this claim, he believes that a good amount of the perps attraction for Synthetix is the assets that are not widely available elsewhere on-chain, and that these assets serve to onboard new users who may choose to stay and trade.

There seemed to be more support amongst the Council for delisting assets for which price data is less reliable (such as tradfi listings), or generally more risky assets. Burt also added that delisting based on OI today might not be the best approach, as some of these assets may develop in popularity later.

Grants Council

Present at the January 4, 2024 Grants Council meeting:
Grants Team: ALEXANDER, Mike, MoneyManDoug, synthquest

In Grants Council updates, the team has started a rework of the UX/UI on the Watcher Page in preparation for V3 (this is about 60% done). They are also continuing work on the sUSD bridge UI that utilizes the native bridge over socket, and are finishing up review of the Discord burn bot that will replace the inflation bot.

Ambassador Council

Present at the January 16, 2024 Ambassador Council meeting:
Ambassadors: GUNBOATs, Kevin, Mastermojo, Matt, Westie

Lastly, the Ambassadors have been discussing the upcoming Optimism Grants season, which starts February 1st and has a submission deadline of February 14th ❤️. Matt also recently created an Optimism Mission Request called “Deliver a Best-in-Class Perp Dex on Optimism,” for which the Ambassadors are seeking input and delegate approval.

The Council is also discussing future Spartan Spaces for this epoch, additional projects for their “Project Spotlight” Twitter series, and finding new lending protocols on Base to list SNX and sUSD. And they just published their latest Ambassador Governance update on Twitter, so make sure you give that a read!


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SIP/SCCP status tracker:

SIP-2047: Begin migrating Perps V2 markets, Status: implemented

SIP-2049: Begin migrating offchain Perps V2 markets, Status: implemented

SNXweave Weekly Recap 121

https://blog.synthetix.io/snxweave-weekly-recap-121/

January 17, 2023

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.

👉TLDR

  • Election results
  • Synthetix Quarterly Report info
  • Andromeda is operating in private beta and is ready to begin scaling
  • SCCP to increase the maximum amount of liquidity that can be provided to Base Andromeda to 1 million USDC is making its way through governance — TC expected to contribute the majority of this initial $1 million
  • Perps V3 trades are being executed on Base Mainnet by multiple integrators
  • L1 Perps is being prepared for a second audit and testnet
  • The SC discussed SIP-2047, which will change low utilization markets to close-only in preparation for migration to Perps V3
  • SIP-2047: Begin migrating Perps V2 markets presentation recap
  • SIP-2048: MaxMarketValue Risk Control Module presentation recap

Welcome to 2024, Spartans! Let’s do a quick recap of what the end of 2023 brought us, including our new Council members:

🚨Election Results🚨

  • Your Spartan Council members for the epoch will be Adam, Bilby, Cyberduck, Jackson, Kain, Millie, ml_sudo, and Snax Frens
  • Serving the community on the Treasury Council this epoch will be Bagg, Cavalier, CoKaiynne, and SpartanGlory
  • Our Grants Council members will be ALEXANDER, es MC, Mike, MoneyManDoug, and Synthquest
  • And lastly, your Ambassadors for the coming epoch will be GUNBOATs, Kevin, MasterMojo, Matt, and Westie

Thank you to all who ran, voted, and participated in governance this past epoch, and congratulations to our newly elected Council members!

And while we’re talking about the end of 2023, SNXweave just released the Quarterly Report for Q4 at Synthetix. So be sure to check it out for a full recap of the last few months of the year!

Spartan Council and SIP updates

Present at the January 10, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Adam, bilby, cyberduck, Jackson, Kain, Millie, ml_sudo, and Snax Frens
Core Contributors: Afif, Bex, Cavalier, joey, KALEB, Matt, meb, Mike, Steve, troy

Now onto our regular updates — Andromeda is currently operating in private beta and is ready to begin scaling. SCCP-309, to increase the maximum amount of liquidity that can be provided to Base Andromeda to 1 million USDC, is making its way through governance. OI increases will follow — the Treasury Council is expected to contribute a substantial portion of this initial $1 million, providing a stable LP base and confidence to increase OI caps.

For markets, Perps V3 trades are being executed on Base Mainnet by multiple integrators, and L1 Perps is being prepared for a second audit and testnet.

And in other discussion, Burt questioned last week if the phasing out of V2 markets would continue at a similar pace (19 markets) as what is outlined in SIP-2047. Cav explained that these markets were selected based on their limited use (combined, they account for <1% of the total OI). Delisting some of the lesser used markets reduces the attack surface area and potentially makes room for more, better offerings. Kain added that these listings could be used in the future as Base-only offerings to incentivize traders to migrate to Base.

Next up, there were a couple of SIP presentations last week, so let’s review them:

SIP-2047: Begin migrating Perps V2 markets

  • This SIP, which we just briefly mentioned, proposes changing a number of markets to “close-only” (no more new positions) in preparation for migration to Perps V3
  • Cav explained again that the criteria for selection was any markets that rely on off-chain oracle data and OI less than $10k over a week
  • Combined, these markets represent less than 1% of the total open interest and eliminating them would significantly reduce governance overhead and complexity of managing off-chain data
  • Burt and Millie asked that the list be broken down to separate the trad-fi markets (Au, Ag) and some of the more popular crypto markets (SHIB, RPL, APE, MEME) from the rest
  • Burt also stressed that the optics of having a long list of recognizable assets is an important factor to consider (this proposal would wipe out ~20% of all the listings)

SIP-2048: MaxMarketValue Risk Control Module

  • Proposed by Kaleb, this SIP will set up a max market value control module that is able to decrease the prevailing market value to zero
  • This would be a tool to be used by the Risk Committee
  • However, since the Risk Committee is not official yet, the Spartan Council may designate an Interim Risk Council that would operate under close supervision of the SC and operate the Risk Control Module
  • This module would only be available for certain markets (low OI, longtail assets)
  • This is intended for emergency use only, in the event that arbitrage is not feasible due to unusual market conditions, to safeguard liquidity providers

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SIP/SCCP status tracker:

SCCP-309: Increase Base LP limit to 1M USDC, Status: draft

SIP-2047: Begin migrating Perps V2 markets, Status: draft

SIP-2048: MaxMarketValue Risk Control Module, Status: draft

Synthetix Quarterly Report — Q4 2023

https://blog.synthetix.io/synthetix-quarterly-report-q4-2023/

Quarterly Report for Synthetix, Quarter 4 of 2023: October — December.

👉Q4 Highlights

Spartan Council/CCs: Andromeda Release & Tokenomics
Grants Council: Watcher Page Improvements
Ambassador Council: OP Grants & Retroactive Public Goods Funding support

We have a lot of big news to review for the final quarter of 2023 and as always, let’s start with the highlights!

The biggest achievement by far this quarter was the planning and execution of the Andromeda Release on Base. In October, Kain released a blog post detailing a series of experiments that the protocol should implement in order to test product demand and market fit. He named the first of these experiments “Andromeda.” With the new flexibility of V3, Andromeda would be a siloed deployment on a brand-new OP stack L2 — Base! This deployment would only support Perps markets and would be collateralized by USDC with the capability for supporting ETH Liquidity Provisioning (LPing) as well. The idea was to create a sandbox to evaluate demand for different collateral types, sensitivity to fee sharing and other incentives, and most of all, demand for perps trading on Base.

There was broad support for this plan from the Spartan Council, and in the process of getting this released, fee sharing proposals with both SNX holders and Integrators were approved for Andromeda. The contracts were deployed to Base mainnet at the beginning of December following a remarkably successful testnet competition earlier in the Fall. Trading and LPing will be open soon with conservative OI caps following the Perps V2 release strategy. Perps V2 went on to facilitate $43 billion in trading volume after its slow start, so we will be closely monitoring Perps V3 on Base and eventually other chains!

Speaking of V3, the Grants Council spent a lot of time this past quarter preparing the Watcher page for V3. About a year ago, they realized that there was a gap in protocol data and they set out to solve that problem. After several iterations, the Watcher Page was eventually born. Publicly available protocol stats are a crucial part of how the protocol markets its success and attracts investors. Since V3 uses a new set of contracts, as it is intended that V2 and V3 run alongside each other for some time, the Grants team oversaw the backend development required to incorporate V3 data in the same place that the community has come to know as the hub for protocol data.

The Ambassadors also had an outstanding quarter helping to secure OP grants for a few protocols in the Synthetix ecosystem including Kwenta, Lyra, and Cannon. OP grants help protocols incentivize activity that drives users to Optimism. The AC also played an instrumental role in getting over 750,000 OP allocated to various ecosystem partners for Retroactive Public Goods Funding (RPGF) in Optimism’s RPGF Round 3.

👉Challenges

Though some headway was made on tokenomics this quarter, there is still no final direction for the value proposition of SNX going forward. As mentioned in the highlights, USDC collateral was finally added as an option, but it was done so in a siloed deployment to avoid competition with SNX staking. The biggest idea that has been floated so far to resolve this is turning off inflation. For those not willing to stake, an inflationary token presents an investment hurdle. Some investors will avoid the project all together, fearing their position will be diluted over time faster than the project adds value. This is as much a technical reality as it is an optics problem for the protocol — once you have been labeled hyperinflationary, it is difficult to shake that tag. Kain, once again, proposed turning off inflation for good this quarter, but it required some iterating to get it over the line and some coordination with some of the other tokenomics SIPs. Specifically, the Buyback and Burn SIP.

As the Andromeda release began to take shape, there were questions about how that trading activity would accrue value to SNX stakers. After all, it was to be a completely siloed deployment with USDC-only LPs. Some members of the Spartan Council voiced support for using some of the new features in V3, such as the rewards manager, to bring those fees directly back to SNX stakers on another chain. The problem is, at this point, it’s still not clear that there will be demand for this product on Base, which is part of the reason why the experiments are being conducted. A more elegant SNX Buyback and Burn mechanism was suggested to bring value to stakers in a more roundabout way. Instead of transferring those fees back to Optimism, SNX will be transferrable to a contract Base that will purchase that SNX with a portion of the fee revenues collected from traders. Since this would directly impact the inflation SIP, there was some coordination required to get both over the line and the Buyback and Burn SIP just barely made it with 5 votes in favor.

The protocol also took a big step this quarter towards addressing the integrator fee share issue. The final split for the Base deployment is set at 20% for Integrators, 40% for SNX stakers and 40% for Base LPs. This was, however, only agreed to for Base, which is still an unknown quantity. While the integrators would have liked to see that fee share proposal extended to all deployments, the ultimate decision was to include it in the Andromeda experiment and use the data from that deployment to inform what the incentives will look like on Optimism, as well as future deployments. In addition to testing demand for Perps on Base, this will also test integrators’ ability to directly drive volume to different deployments.

👉Protocol Stats

Overview of Synthetix Q4 Stats: October 2023 — December 2023

Synthetix Quarterly Report — Q4 2023

👉Spartan Council

Q4 2023 Spartan Councilors: Adam, Burt Rock, cyberduck, Genefaesius.eth, Jackson, Kain, Millie, ml_sudo

Synthetix Quarterly Report — Q4 2023

Along with their contribution to the achievement of major Synthetix milestones this epoch, let’s take a minute to review everything else that the Spartan Council was able to achieve in just the last 3 months.

Getting Andromeda over the line was the BIG achievement of Q4. There weren’t as many approved SIPs this quarter, but the impact of the approvals in the previous three months will be felt by the Synthetix community for quite some time. The quarter began with the testnet competition, which provided valuable data to make the necessary improvements to Perps V3 before it was deployed to mainnet. Also in October, there was a minor fee distributor issue that was corrected via the Phecda Release at the end of the month.

In November, the Integrator Fee Share discussion finally came to some agreement. As mentioned earlier, the final cut for integrators will be 20% of the fees generated on Base. All of the volume directed to the Synthetix Perps contracts comes through various integrators, with the vast majority coming through Kwenta. Numerous proposals have been put forward to get a portion of the fees passed on to integrators, and it was this quarter’s Spartan Council that finally reached an agreement.

December was very busy! At the beginning of the month, all of the contracts necessary for the Andromeda release had been deployed to Base mainnet. The Council then did the work to address the remaining glaring issues that may have prevented a successful launch. The first was the LP fee share issue, which was addressed in SIP-345: SNX Buyback and Burn on Base. The second related SIP was one to end inflation in SIP-2043, and the last step was to configure the Andromeda release to enable USDC collateral in SIP-348. Also, during the month, the Council approved several SIPs that went out on the Aludra Release, adding 9 new Perps markets to Perps V2.

👉Grants Council

Q4 2023 Grants Councilors: ALEXANDER, CT, MoneyManDoug, sunny, synthquest

As we highlighted above, the Grants Council had a pretty good quarter of supporting the protocol with various projects and initiatives. So, let’s recap them!

Community Governance Guide

Starting off strong, the Grants Council worked with TerraBellus over several months to bring this informational governance guide. This guide gives an in-depth overview of Synthetix governance and its processes, including:

SIPs/SCCPs/STPs

  • How proposal ideas come about
  • Proposal drafting and submission
  • Proposal presentation
  • Voting and implementation process

Governance

  • Councils and other protocol groups
  • Council mandates
  • Epoch structure

This guide is a great place to start if you’re looking to learn more about Synthetix governance and how to get involved!

Watcher Page

The Watcher Page has been an incredibly useful tool for quite some time now, but the GC has been continuously improving it over the past quarter. Thanks to improvements led by Synthquest, the site now also includes favorites, historical account profit and loss (PnL), trade history on individual account pages, basic staking stats on individual account pages, and daily aggregated views of your favorite traders. The Watcher Page continues to be a valuable source of information, providing all of the stats related to trading data and information.

Synthetix Quarterly Report — Q4 2023
New feature: favorites
Synthetix Quarterly Report — Q4 2023
New feature: historical account PnL & trade history on individual account pages
Synthetix Quarterly Report — Q4 2023
New feature: basic staking stats on individual account pages

Bots

In addition to their regular Synthetix Discord bot maintenance and payments, the Grants Council also helped get a new bot up and running last quarter: the ETH/BTC ratio bot. This bot provides an accurate tracking of the current ETH to BTC ratio every minute via Dexscreener — shout out to EthBoi for his help with this one!

Synthetix Quarterly Report — Q4 2023

A new update for the Telegram bot was also released, with the help of Nikita. In case you haven’t used it before, the Telegram Bot is a useful tool for monitoring staking. With the new update, it has now undergone a complete overhaul of features, including:

  • A user-friendly and intuitive button menu
  • An enhanced and more flexible notification system
  • Repeatable notifications
  • Customizable auto-updating dashboard

Be sure to check these bots out, and let the GC know your thoughts and feedback in the grants-council Discord channel.

Spartan Synthverse Mint

As we all know by now, the Spartan Synthverse NFT project dropped back in July. The Grants Council worked through the first several phases of this project, and then deployed the free mint at the end of October. This is now in its second stage — the presale for over 7,000 whitelisted users, with a maximum of one NFT per transaction. There are currently fewer than 600 NFTs remaining in this mint, so check it out here while you still can if you’re a whitelisted user! The third and final stage following the presale will be a public free mint where users can buy up to 20 NFTs per transaction — each NFT is free to mint, just pay gas!

Retroactive Grants

Next up, the GC issued several Retroactive grants this past quarter, helping to improve the Synthetix ecosystem by further involving the community. Some of these grants included:

  • Gelato Automated Minting — donoso_eth, gunboats, casual degen (250 SNX each)
  • The new updated Telegram Bot — Nikita k (500 SNX)
  • For open sourcing high-level data analytics and python repos, as well as helping up with general Synthetix data — 0xEvan (750 SNX)

Notifi Integration

Lastly, the Grants Council funded and worked with Core Contributor Matt in October to bring Notifi to the Synthetix ecosystem and help improve the staking experience. Notifi is a leading provider of DeFi alerts that brings real-time notifications (hence the name) to users. With Notifi, you can receive instant alerts about your staking positions, protocol updates, and other essential reminders. These alerts can be enabled directly within the staking UI using the bell icon.

It’s super easy to set this up — just look for the notification bell on the Synthetix Staking UI once you’ve connected your wallet, and click on it to select and activate the alerts of your choice.

Types of alerts you can receive with Notifi include:

  • Synthetix Announcements: Stay updated with important updates and Alpha directly from Synthetix
  • Liquidation Warning: Get alerted when you’re flagged for liquidation
  • Liquidation Confirmation: Get alerted when your position gets liquidated
  • Account Snapshots: Get a summary of your portfolio at the end of each epoch, like you would with a bank statement
  • Claim Reward Reminders: Get reminded when to claim your reward at the end of each epoch
  • Governance Updates: Receive status updates about key governance proposals and outcomes
  • C-Ratio Health Alerts: Get alerted when your C-Ratio goes above or below the threshold you set

And all of these can be received on Discord, Telegram, and email!

Synthetix Quarterly Report — Q4 2023

What’s next for the Grants Council?

The GC has the following items on their ongoing/upcoming list:

  • Overtime Markets V3 integration
  • Debt Migration UI

These have both been in the works for a while, so we’ll keep you updated on their progress throughout the next quarter!

👉 Ambassador Council

Q4 2023 Ambassador Councilors: GUNBOATs, Kevin, mastermojo, Matt, Westie

In Quarter 4, the Ambassadors continued to promote Synthetix through their governance participation, partnerships, public goods involvement and more. The Council had three main focuses during Q4:

  • DeFi Governance: Optimism Governance (which involved Token House and Citizen House) and other DeFi DAOs (such as Arbitrum, Gearbox, Safe, Lyra, Aave, etc.)
  • Integrator support: Current and future — guiding Core Contributors, integrators, and more through the grant process and helping secure valuable funds
  • Marketing support: Spartan Spaces and Integrator Spotlights from the Ambassador twitter account

Now let’s get into a more detailed list of what the Ambassador Council accomplished this past quarter:

✅ Governance

1. General Governance

The Ambassadors make it abundantly clear that all of their voting is completely transparent. Their voting activity can be followed through their wallets on Snapshot and Tally using these links:

The Council has also been increasing their online engagement this past quarter, including introducing two new Twitter series:

2. Optimism Governance

The Synthetix Ambassadors remain a major voice in Optimism Governance, and their respective OP Governance Forum Activities can be found using these links:

It’s important to note that the Optimism Governance forum is only one area of activity. Most activity at this point for OP Grants lives on their Charmverse & Discord. Highlights for the year in this area include:

  • Kwenta and Lyra were the two most recent projects guided through the OP grants program
  • Kwenta received 200K OP (roughly ~$680,000)
  • Lyra received 200K OP (roughly ~$680,000)
  • Cannon received a 50k OP Grant
  • The Ambassadors expect to support many ecosystem partners in the upcoming round, including Polynomial, Rage Trade, Synthetix IPFS node, Synthetix, etc.
  • As of right now, OP Grants cannot be used on Base, but the Council is working with delegates/the OP foundation to move in that direction

3. Retroactive Public Goods Funding (RPFG)

As we just discussed, the Ambassadors are very involved in Optimism governance. They have also recently been more involved in OP’s RPGF Round 3, and they created a Synthetix Ecosystem Public Goods List back in November. This list outlined Synthetix Ecosystem projects that were seeking Optimism RPGF, and consolidated them for OP badgeholders. The projects on this list have put building first and have significantly contributed to the growth of the Synthetix ecosystem, as well as Optimism as a whole, by onboarding developers, projects, LPs, and traders. Suggested amounts of OP were allocated by the Ambassadors in the list based on positive impact on the Optimism ecosystem.

Synthetix Quarterly Report — Q4 2023

ALL of these projects on the list met quorum for RPGF in this round! The total pool for Round 3 was 30 million OP (which translates to around $100 million), and the Synthetix Ecosystem secured 767,165 OP in RPGF (almost $3 million), which is a HUGE win for the protocol and ecosystem! Below is the total allocation breakdown:

Synthetix Quarterly Report — Q4 2023

4. Partner Support

Current Partners

  •  The Ambassadors have been implementing a trial this past quarter where they check in on Partners and work with them on any feedback they have, any support that they request, etc.

Future Partners

  • The Council plans to focus on Perps V3 and Synthetix V3 in the next epoch when it comes to future partnerships. They are currently in talks with future partners to build on top of Synthetix Perps, either as a frontend or otherwise, and they will be continuing these efforts into the new quarter.

✅ Spartan Spaces

Spartan Spaces continued to serve as important community marketing tools this quarter, with the Ambassadors hosting other DAOs on behalf of Synthetix.

1. EigenLayer (Length: 1 hour)

2. Valio & Kwenta (Length: 45 minutes)

3. Infinex & Lit Protocol (Length: 1 hour)

4. Andromeda on Base Release with CCs (Length: 50 minutes)

✅ Synthetix Governance Proposals

Lastly, members of the Ambassador Council also proposed several SIPs in Q4, including:

1. SIP-338: Deploy SNX Token on Base via Base Bridge (author: Matt)

2. SIP-2035: List TIA on Synthetix Perps (author: GUNBOATs)

3. SIP-2037: List IMX and TRB on Synthetix Perps (author: GUNBOATs)

4. SIP-2039: List MEME on Synthetix Perps (author: GUNBOATs)

5. SIP-2040: List ANKR, FET, GRT on Synthetix Perps (author: GUNBOATs)

6. SIP-2041: List PYTH on Synthetix Perps (author: GUNBOATs)

7. SIP-2042: List BONK on Synthetix Perps (author: GUNBOATs)

8. SIP-2044: List ORDI on Synthetix Perps (author: GUNBOATs)

  • Vote still pending

9. SIP-2045: List JITO on Synthetix Perps (author: GUNBOATs)

  • Vote still pending

Shout out GUNBOATs!

What’s next for the Ambassadors?

In the next quarter, the Ambassador Council is aiming to help guide additional projects in the Synthetix ecosystem on the Optimism and Arbitrum Grant processes. In addition, they intend to continue:

  • Pursuing further growth strategies for Perps and Synthetix V3
  • Exploring opportunities to scale synth supply
  • Increasing presence in Optimism governance
  • Expanding influence in DeFi & DeFi Governance

👉Best Memes from Q4

The quarter of COURSE wasn’t without humor, so here are our favorite memes from the quarter:

Synthetix Quarterly Report — Q4 2023
Synthetix Quarterly Report — Q4 2023
Synthetix Quarterly Report — Q4 2023

SNXweave Weekly Recap 120

https://blog.synthetix.io/snxweave-weekly-recap-120/

December 20, 2023

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.

👉TLDR

  • 🚨Spartan Council Election Panel TOMORROW Dec. 21st at 10pm UTC!! Event RSVP here
  • Andromeda: initial launch integrators will include Kwenta and Polynomial
  • Infinex is planning an invite-only Alpha launch for Base
  • Parameters will stay tight for this until at least the beginning of next year
  • Markets: multiple integrators are actively testing Perps trading on Base goerli and L1 Perps is pending its final audit feedback.
  • SIP-2044: List ORDI on Synthetix Perps presentation recap
  • SIP-2045: List JITO on Synthetix Perps presentation recap
  • SIP-2046: List Axelar Token (AXL) on Synthetix Perps presentation recap
  • SIP-352: Deploy SNX token as xERC20 for crosschain bridging presentation recap

Spartan Council and SIP updates

Present at the December 13, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Adam, Burt, cyberduck, Genefaesius.eth (Gene), Jackson,
Core Contributors: Afif, Cavalier, David, joey, KALEB, Matt, Max, Mike, Nikita, Steve, troy

The final testing of Andromeda is complete and the contracts have been deployed to mainnet. SIP-348, which outlines the Andromeda release configuration, aims for a conservative initial deployment mostly for integrators to perform test transactions on mainnet. Launch integrators will include Kwenta and Polynomial, and Infinex is planning an invite-only Alpha launch for Base as well.

These will likely stay tight until at least the beginning of next year, but there is no set schedule yet. Improvements are also being made to the deployment process and the CCs are assisting integrators on testnet.

And as a quick markets update, multiple integrators are actively testing Perps trading on Base goerli and L1 Perps is pending its final audit feedback.

Next up, there were a few SIP presentations last week, so let’s briefly review them:

SIP-2044: List ORDI on Synthetix Perps

  • This SIP proposes listing ORDI on Synthetix Perps
  • ORDI is a BRC-20 token, which would be the first listing of its kind on Synthetix
  • Adam questioned whether an asset on another chain would create any challenges for the debt pool if the entire token platform were to fail or be shut down

 — This has not been a concern for previous listings as they have all been ERC-20, and an ERC-20 failure would be a catastrophic event for the protocol anyway

 — The exposure would be limited to the OI cap of that listing

 — Burt also brought up that for this listing specifically, a bitcoin fork that shut down BRC-20 tokens would be announced ahead of time which would give the council a window to react

 — Adam would still like to have the framework in place before committing to listing the asset

SIP-2045: List JITO on Synthetix Perps

  • SIP proposes listing JITO on Synthetix Perps
  • JITO, which launched just a couple of weeks ago, is a validator governance token for Solana

SIP-2046: List Axelar Token (AXL) on Synthetix Perps

  • SIP proposes listing AXL on Synthetix Perps
  • Axelar delivers secure cross-chain communication for Web3. Axelar recently got listed on Upbit spot market and Bybit Futures which is an opportunity to expand offering on Synthetix Perps.

All three of these listings were picked based on volume and Perps availability on other exchanges.

SIP-352: Deploy SNX token as xERC20 for crosschain bridging

  • This SIP proposes deploying SNX xERC20 and Lockbox to facilitate bridging between Ethereum and Base and allow for additional fast bridge solutions while retaining sovereignty
  • The biggest difference between this SIP and other bridging proposals so far is that it proposes creating an SNX bridging standard that would allow the protocol to maintain full control of the token
  • The solution would still be compatible with other third-party bridges
  • Adam added that the Spartan Council has decided to put a hold on any integrations with non-canonical bridges until the CCs are satisfied with the initial testing on Base, so this SIP will be on hold until then

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SIP/SCCP status tracker:

SIP-348: Enable USDC for Andromeda on Base, Status: implemented

SIP-2044: List ORDI on Synthetix Perps, Status: vote pending

SIP-2045: List JITO on Synthetix Perps, Status: vote pending

SIP-2046: List Axelar Token (AXL) on Synthetix Perps, Status: draft

SIP-352: Deploy SNX token as xERC20 for crosschain bridging, Status: draft

SNXweave Weekly Recap 119

https://blog.synthetix.io/snxweave-weekly-recap-119/

December 13, 2023

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.

👉 TLDR

  • Perps V3 audit is complete & is just pending its final report before the vote is opened
  • SC and CCs had a discussion regarding Perps markets and OI scaling on Base
  • SIP-2043: End SNX Inflation presentation recap
  • SIP-351: Implement Cross-Chain SNX Token Transfers on Base via Chainlink CCIP presentation recap
  • Ambassador Council update: Spartan Space last week with Infinex and Lit Protocol, discussion of OP votes for two new recent votes, and conversation about projects that are in RPGF round 3. Every project in the Synthetix Ecosystem Public Goods list has passed quorum, and the Ambassadors played a vital role in securing votes and amplifying our ecosystem to other. MasterMojo is planning to release a new Governance twitter post to summarize the results.

Spartan Council and SIP updates

Present at the December 6, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Adam, Burt, cyberduck, Genefaesius.eth (Gene), Jackson, Kain, Millie, ML_sudo
Core Contributors: Afif, Bex, Cavalier, joey, jz, KALEB, Matt, meb, Mike, Nikita, Steve, sunny, troy

The Perps V3 audit is finished and is just pending its final report now before the vote is opened. Kain asked how the CCs saw Perps markets and OI scaling on Base — Afif responded saying the first live tests of V2 highlighted some minor issues that needed to be corrected before OI and markets could scale. The same initial cautious approach will be taken with V3 to allow testing in a low risk environment. Another prerequisite is initial LP TVL — there needs to be some critical mass of USDC LP activity on Base before Perps becomes a functional product there.

The technical aspects of the release should be ready to scale up in mid to late January, and the economic aspect is still an unknown. Afif estimates roughly $50 million USDC to replicate V2X functionality, but the product could launch with more limited caps around $10 million. Kaleb added that arbitragers are an important part of the way V2X functions and there needs to be incentive for them to participate on Base (where their participation will be monitored as part of the scale up).

Markets will rely exclusively on Pyth oracles on Base and, due to their design, they are available on any chain that Synthetix deploys on (instead of having to deploy new contracts to each chain for push oracles). With V2 possibly reaching a maturity stage in terms of the number of markets it can support, there will be an opportunity to launch new markets on Base that will be exclusive to that deployment.

There were also a couple of SIP presentations last week so let’s briefly review them:

SIP-2043: End SNX Inflation

  • If this SIP is implemented, inflation will be reduced to zero in the claim week following the vote
  • Inflation was introduced in 2019 to incentivize staking in the recently deployed Synthetix network, following the pivot from Havven
  • It was critical that the staking ratio was high in the early period of the network to scale liquidity
  • Kain believes the reputation of SNX as an inflationary token is harming the protocol
  • Even if inflation were to be reduced to a very low level, it’s difficult to cut through that narrative
  • As inflation has changed over the past couple of years, there has been limited change in the staking ratio, which represents the protocol participation rate for SNX holders. So there is no evidence that reducing or eliminating inflation will harm the SNX staking pool
  • It may, however, make more people willing to hold the token without fear of being diluted by inflation
  • Kain added that this is a great time to do it with the launch of Andromeda to maximize the impact of that launch
  • Adam said he has spoken with VCs who are even more dialed in than your average user, and still believe that SNX is hyperinflationary, and have therefore avoided the token as a result
  • It’s too complicated to explain how inflation has dropped vs a simple “inflation is over” explanation
  • This move may also free up more sUSD for trading, as stakers would not have to hoard the stablecoin to manage their c-ratio
  • Network health would have to be monitored closely in the early days of this new experiment, but Kain thinks the liquidation penalty is enough incentive for LPs to maintain their c-ratio

SIP-351: Implement Cross-Chain SNX Token Transfers on Base via Chainlink CCIP

  • This SIP proposes enabling CCIP for secure cross-chain SNX token transfer between Ethereum and Base
  • No modification is required for the existing SNX token contract on Ethereum and no changes are needed for existing V2X contracts
  • This bridge would allow users to avoid the 7-day lock-in from L2 to L1
  • L2 to L2 transfers are also possible via this bridge, and the Synthetix protocol would maintain ownership of the token contracts that enable the bridge
  • Each token and ‘lane’ (direction of travel between networks) can be configured with its own rate limit
  • CCIP has been developed with security in mind and the capability to handle advanced transactions in the future
  • Execution networks act separately from anomaly detection and risk management systems, but all three must achieve consensus for any transaction to be executed
  • There are currently a handful of tokens enabled for CCIP bridge transfer including snxUSD and GHO (AAVE stablecoin)

Ambassador Council

Present at the December 6, 2023 Grants Council meeting:
Ambassadors: GUNBOATs, Kevin, Mastermojo, Matt, Westie

Lastly, the Ambassadors had a Spartan Space last week with Infinex and Lit Protocol, with over 55 listeners. And during their meeting last week, they discussed their OP Votes for the two new recent votes that ended a few days ago (which can be found here), and they hashed out some projects that are in the current Optimism RPGFunding round. Every project in the Synthetix Ecosystem Public Goods list has passed quorum, which is HUGE! The Ambassadors played a vital role in securing votes and amplifying our ecosystem to other badgeholders. MasterMojo is also planning to release a new SNX Ambassador Governance twitter post to summarize it all once he gets the results back. Their most recent summary can be found here.


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SIP/SCCP status tracker:

SIP-337: Perps V3, Status: vote pending

SIP-2043: End SNX Inflation, Status: implemented

SIP-351: Implement Cross-Chain SNX Token Transfers on Base via Chainlink CCIP, Status: draft

SNXweave Weekly Recap 118

https://blog.synthetix.io/snxweave-weekly-recap-118/

December 6, 2023

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.

👉TLDR

  • Andromeda has been deployed to testnet with the latest version of Perps V3, and is being refined for integrators
  • L1 Perps audit feedback is almost done being implemented
  • SC/CCs discussed the new dHedge/Toros pool on Base
  • SIP-345: SNX Buyback and Burn presentation recap
  • SIP-350: Implement SNX Token Bridging via Wormhole presentation recap
  • SIP-2041: List PYTH on Synthetix Perps presentation recap
  • SIP-2042: List BONK on Synthetix Perps presentation recap
  • Grants Council update: several retroactive grants were paid out (see below for specifics), team is brainstorming how to help with the V3 Base data, more Watcher Page updates, and looking for a dev for a SIP automerger and debt migration UI.

Spartan Council and SIP updates

Present at the November 29, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Adam, Burt, cyberduck, Genefaesius.eth (Gene), Jackson, Kain, Millie, ML_sudo
Core Contributors: Afif, Bex, Cavalier, David, Jade, jz, KALEB, Matt, meb, Mike, Steve, troy

Andromeda has been deployed to testnet with the latest version of Perps V3, and is being refined for integrators. The audit is wrapping up with small improvements, while the L1 Perps audit feedback is almost done being implemented.

In other discussion, last week Duck asked about the new dHedge/Toros pool on Base. Cav clarified that it will be a vault that automates the process for USDC LPs on Base. Overall, third party staking interfaces are a positive step for the protocol as they help reduce the overhead for Synthetix deployments to additional chains.

Next, there were several SIP presentations last week, so let’s briefly review them:

SIP-345: Buyback and Burn SNX on Base

  • As discussed in previous recaps, this SIP proposes using 50% of fees earned on Base to buyback and burn SNX — after paying integrators, the remaining fees will be split between Base LPs and SNX stakers
  • Stakers would receive the rewards via a buyback and burn, and fees would be used to purchase SNX at the current price
  • The plan is to use a variation of a Yearn contract
  • The fees will accrue and there will be a permissionless mechanism to sell SNX into the contract
  • The burning of the fees will be a manual process executed by the Treasury Council
  • Since Andromeda is an isolated deployment, this was picked as the most elegant solution for returning value to the wider Synthetix ecosystem
  • Adam asked if the experiment had a specified termination date, and Cav explained that a SIP with a better solution could always supersede this SIP, but this is a very low-overhead way to find out if such a solution is worth dedicating resources to
  • Gene and Duck requested a bit more detail in the SIP regarding the burn process (specifically, where the SNX will be sent and a request to add the interval at which this will happen). Cav will be adding these details.

SIP-350: Implement SNX Token Bridging via Wormhole

  • Presented by Evan from Wormhole, this SIP proposes utilizing Wormhole’s Wrapped Token Transfers contracts to facilitate the movement of SNX tokens across multiple chains
  • This method would also allow users to withdraw SNX without facing mandatory 7-day lock-in periods
  • Wormhole guardians are able to guarantee transaction finality faster than the optimistic window because they are each running full Optimism nodes
  • This mechanism could also be used to facilitate buys and burns, or reward distributions to other chains
  • It would also more easily enable expansion to other chains in the future
  • This would be a permissionless process and require no code changes (i.e. SNX could be transferred anywhere within the wormhole network and users would receive a wrapped SNX token on the other)
  • Aakash added that the biggest advantage with this implementation would be the single interface to support bridging across multiple deployments (rather than using the individual bridge solutions developed for each chain that SNX is deployed on)
  • ML_sudo asked if governor limits (which limit the amount of volume passed through the bridge over a specific time period) could be set for individual tokens:
  • Wormhole currently has global limits, and the community has voted to make the limits higher for individual tokens in a few cases
  • There has never been a request to adjust them lower, but they will be taking this request back to their CCs to see if it’s something that could be offered

SIP-2041: List PYTH on Synthetix Perps

  • SIP proposes listing Pyth Network Token on Synthetix Perps

SIP-2042: List BONK on Synthetix Perps

  • SIP proposes listing BONK on Synthetix Perps
  • Adam asked if all the Perps security backstops could handle such a volatile listing — Kaleb answered saying there was already an existing Perp market on Binance to hedge against

Grants Council

Present at the November 30, 2023 Grants Council meeting:
Grants Team: ALEXANDER, CT, MoneyManDoug, synthquest

In Grants Council updates, the team has been discussing how they can help on the V3 Base data. They also paid out several retroactive grants last week: some for automated minting work, Telegram Bot updates, and for open sourcing high-level data analytics and python repos. Synthquest also brought some Watcher page updates to the table for discussion, and the Council is working on finding a dev for a SIP automerger and debt migration UI.

Here are the exact amounts that were paid out for the Retroactive Grants:

Automated Minting:

  • donoso_eth — 250 $SNX
  • gunboats — 250 $SNX
  • casual degen — 250 $SNX

New updated Telegram Bot:

  • nikita k — 500 $SNX

API work/general Synthetix data:

  • 0xevan — 750 $SNX

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SIP/SCCP status tracker:

SIP-345: Buyback and Burn SNX on Base, Status: vote pending

SIP-350: Implement SNX Token Bridging via Wormhole, Status: draft

SIP-2041: List PYTH on Synthetix Perps, Status: approved

SIP-2042: List BONK on Synthetix Perps, Status: approved

SNXweave Weekly Recap 117

https://blog.synthetix.io/snxweave-weekly-recap-117/

November 29, 2023

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.

👉TLDR

  • SIP-337: Perps V3 presentation recap
  • SIP-348: Enable USDC for Andromeda on Base presentation recap
  • Explainer blog post for the Andromeda release was published yesterday
  • Ambassador Council update: Team discussed potential future integrations/builders, how to support current integrators, and a framework to make sure all projects in the ecosystem know about Optimism Grants/Retroactive funding. Ambassadors also created a Synthetix Ecosystem Public Goods list for Optimism’s RPGF Round 3 where other badgeholders can vote, and are working on an article on how new protocols can leverage V3.

While some of the Councils postponed their meetings last week for Thanksgiving in the US, we still have a quick update for you guys this week on last week’s SIP presentations and Ambassador updates! So let’s get into it:

SIP updates

Participants at the November 21, 2023 SIP presentation:
Spartan Council: Adam, Burt, cyberduck, Kain, Millie, ml_sudo
Core Contributors: Afif, Cavalier, joey, KALEB, Matt, sunny

SIP-337: Perps V3

  • As discussed in previous blog posts, this SIP proposes deploying Perps V2 to Synthetix V3 with a number of feature upgrades and improvements
  • Upgrades include native cross-margining of positions, multi-collateral margin support, revamped liquidations, and improved deterministic settlement. Let’s review what some of these upgrades will entail:

1. Multi-collateral support

  • In Perps V3, all synths that the spot market creates will eventually be enabled as collateral
  • This is done so that it’s easy for the perps market to have liquidity to sell synths when required, and allows it to easily get quotes to determine margin value

2. Liquidations

  • Large positions will be gradually liquidated, one non-sandwichable portion at a time, with a configurable delay between partial liquidations
  • This eliminates the MEV sandwich attack vector, keeping that value with the protocol

3. Improved deterministic settlements

  • Delayed orders in Perps V2 have proven extremely effective in minimizing toxic flow, however the details of the implementation can be improved to produce a more resilient settlement flow
  • In Perps V3, the settlement process ensures that the execution price is the price at commitment time and is executed in the available window

4. Market structure

  • A number of individual Perps markets will be grouped together into a larger “supermarket”
  • This is to ensure all the risk from each market or collateral type is appropriately distributed for LPs backing the supermarket
  • The supermarket will have variables that can be specifically configured for that market
  • This may allow markets to be split up in the future based on risk profile and liquidity

5. Staleness tolerance

  • As we already know, each perps market requires price information
  • From the trading competition, it became clear that the cost of pushing that data on-chain was very high
  • Optionality was added so that price staleness could be made strict for liquidations, for example, and less strict for other transactions
  • This will reduce transaction costs overall by reducing the amount of data being pushed on-chain

SIP-348: Enable USDC for Andromeda on Base

  • This SIP proposes using the V3 spot and wrapper functionality to allow users to deposit USDC for a wrapped version to be used as LP collateral or margin for trading
  • The proposal details all of the V3 configurables for the Perps V3 deployment to Base, including the enabling of USDC as LP collateral
  • The deployment to Base will be a new market with, potentially, a new set of users, so it made sense to launch with USDC support (one of the most widely used stablecoins in DeFi). Selecting a single collateral type also reduces the complexity of the deployment
  • The max market size will be roughly $1 million each for BTC and ETH (a conservative cap to start with, similar to the launch of Perps V2)
  • ML_sudo asked what the process would be for adding new markets — Afif said the strategy would likely be similar to the V2 rollout (start with most liquid trading pairs and low OI caps before gradually adding new markets and increasing caps). He also stressed the importance of continuing to build on the positive reputation that the protocol has developed over the past year since the introduction of Perps
  • There was some general confusion on the council that the SIP seemed to be missing key details about the deployment that had been discussed previously (namely the fee sharing)
  • Cav clarified that there are a number of SIPs that will be part of the Andromeda deployment (SIP-345: SNX buyback and burn and SIP-346: Integrator Fee share included)
  • Kain suggested listing those as dependencies in this SIP, so Cav is updating it to reflect all dependencies

Matt also just announced an explainer blog post for the Andromeda release yesterday, which can be found here. The post discusses some background on Perps V2, what upgrades Perps V3 will bring, the essence of testing in Andromeda, isolation of the Andromeda release on Base, how success will be measured, what to expect for the initial rollout, the Andromeda experience from an LP vs. trader perspective, and the future of Synthetix with Andromeda. Be sure to give the post a read!

Ambassador Council

Present at the November 21, 2023 Ambassador Council meeting:
Ambassadors: GUNBOATs, Kevin, Mastermojo, Matt, Westie

Lastly, for a quick Ambassador Council update, the team discussed potential future integrations and builders, as well as ways to engage and support current integrators. They then discussed a framework to make sure all projects in the ecosystem know about Optimism Grants/Retroactive funding.

The Ambassadors are also in the process of brainstorming an article on how new protocols can leverage V3, as well as planning out future Spartan Spaces. Lastly, the Council created a Synthetix Ecosystem Public Goods list for Optimism’s RPGF Round 3 where other badgeholders can vote. The projects on their list have put building first and have significantly contributed to the growth of the ecosystem by onboarding developers, projects, LPs, and traders.


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SIP/SCCP status tracker:

SIP-337: Perps V3, Status: draft

SIP-348: Enable USDC for Andromeda on Base, Status: draft

SIP-345: SNX buyback and burn, Status: draft

SIP-346: Integrator Fee share, Status: approved

SNXweave Weekly Recap 116

https://blog.synthetix.io/snxweave-weekly-recap-116/

November 22, 2023

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.

👉TLDR

  • V3 core and Perps V3 are both on Base Goerli testnet!
  • Cross-chain election module audit feedback is being implemented — could be ready for upcoming election in December
  • SC V3 tokenomics discussion: Kain thinks the council should get feedback on the experiments that have been proposed, Gene and Millie voiced concerns about the USDC collateral experiment, Adam emphasized that relevant information needs to be clearly communicated to the community. There are several upcoming SIPs related to tokenomics, and Matt will be writing a blog post on them collectively.
  • SC inflation discussion: read below
  • SIP-349: Add crosschain reads with Wormhole CrossChain Queries presentation recap
  • Grants Council update: GC is looking into new tools for tools.synthetix.io, two retroactive grants were proposed, current pending grant requests were discussed, team is brainstorming watcher page staking fee calculator, and the site’s account and PnL pages are almost ready.
  • Ambassador Council update: Ambassadors discussed their Spartan Space with Valio and Kwenta, and went over their OP votes for the 8 recent votes that ended a few days ago. OP’s Retroactive Public Goods Funding Round 3 is currently open, so the Ambassadors discussed projects that have been submitted. GUNBOATs and Kevin represented the Synthetix Ambassadors at Blockchain Genesis for Thailand Blockchain Week 2023.

Spartan Council and SIP updates

Present at the November 15, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Adam, Burt, cyberduck, Genefaesius.eth (Gene), Jackson, Kain, Millie, ml_sudo
Core Contributors: Afif, Cavalier, Jade, joey, jz, KALEB, Matt, Max, meb, Mike, Nikita, Steve, sunny, troy

V3 core and Perps V3 are both on Base Goerli testnet! And the cross-chain election module audit feedback is being implemented, which means it could be ready in time for the coming election in December.

Last week the Spartan Council also had a discussion about V3 tokenomics, as Millie wanted to make good on the Council’s promise to bring some resolution to this issue by the end of the epoch. Kain suggested a better discussion would be to get feedback on the experiments that have been proposed and if the council feels that those experiments will deliver all of the information necessary to make a decision on tokenomics going forward.

Gene voiced some concern about the USDC collateral experiment, but acknowledges that it seems to be a popular idea among users and the rest of the Council. The primary concern, which Millie also expressed, was how external collateral affects SNX token holders. Kain stressed that the point of these experiments is to find out if there is any demand at all for liquidity providers (LPs) with other collateral willing to be the counterparty for perps trading.

Both outcomes (whether demand is high for USDC/ETH collateral or not) provide valuable data on how the protocol should proceed with its scaling roadmap. Adam also called out the importance of communicating that information very clearly to the community because many have jumped to conclusions about what Andromeda means for SNX collateral in the future. There are several upcoming SIPs related to tokenomics, and Matt will be writing a blog post on them collectively.

Next, Millie wanted to get a temperature check from the SC on where everyone stands on ending inflation. Duck thinks if the buyback and burn can make the token deflationary without completely shutting off inflation, that leaves room to continue incentivizing desirable behavior. Kain thinks it’s generally a moot point, but there might be perceived value if inflation is completely turned off since the current optics of the SNX token is that it’s highly inflationary.

Adam suggested directing some inflation towards V3 spot markets before cutting it off completely, which will bootstrap liquidity there while simultaneously demonstrating that it’s not necessary for V2. Burt advocated for a more data-centric approach, calling out that it’s unknown if there are any tangible consequences to cutting off inflation completely. Kaleb brought up that inflation has decreased substantially over the past year and the staking percentage has held at around 70%.

Next up, there was a SIP presentation last week for SIP-349 to enable cross-chain reads on Synthetix V3 by integrating Wormhole’s CrossChain Query (CCQ).

SIP-349: Add crosschain reads with Wormhole CrossChain Queries

  • If approved, Wormhole CCQ will be implemented, enabling proposals like SIP-312 (V3 cross-chain pool synthesis) to unlock a multichain future for Synthetix V3
  • If there is a need to sync pool data across chains, this SIP will provide the infrastructure to make that possible
  • Any use case for this tool would be outlined in different SIPs, such as SIP-312 or future SIPs proposing to link isolated deployments from different chains

Some SC members brought up challenges that bridges have had in the past and asked for some more clarity on the updated security model. The Wormhole team responded saying:

  • The Gaurdian set for Wormhole is comprised of top 19 validator companies, and their primary function is data attestation
  • 2/3rds of the Gaurdians must witness a transaction to achieve consensus
  • For cross-chain queries, the inverse happens (Guardians perform a call and discuss the results, which is then verified via a two thirds majority)
  • All of the validators are completely doxxed and have a reputational stake in verifying accurate information
  • Following previous exploits, an additional circuit breaker has been put in place to limit notional transaction volume that can be verified in a 24 hour period
  • A ‘global accountant’ mechanism has also been added to check all debits against credits to verify that what is being distributed on another chain has been collected first
  • There have also been 20 audits and all the security code is open source
  • Kain called attention to the fact that there are already outside dependencies that Synthetix relies on (Oracles) and thinks this is a useful piece of infrastructure that will be crucial in the future
  • Cav highlighted that the intention with this SIP was to separate the infratructure from the specific feature that it will be used to implement

Grants Council

Present at the November 16, 2023 Grants Council meeting:
Grants Team: ALEXANDER, CT, MoneyManDoug, synthquest

In Grants Council updates, the team had a few action items come out of last week’s meeting:

  • Doug will be looking into adding new tools for tools.synthetix.io
  • Two retroactive grants were proposed: one for the CCs for helping with Ambassadors voting and one for Gelato auto mint
  • The team also discussed current pending grant requests and are waiting on technical input for one grant request
  • They are also brainstorming watcher page staking fee calculator, and the site’s account and PnL pages are almost ready

Ambassador Council

Present at the November 14, 2023 Ambassador Council meeting:
Ambassadors: GUNBOATs, Kevin, Mastermojo, Matt, Westie

Lastly, in Ambassador updates, the team discussed their Spartan Space with Valio and Kwenta, where they had over 60 people in attendance. They also went over their OP votes for the 8 recent ones that ended a few days ago — you can see how they voted on Optmism’s proposal page.

Optimism’s Retroactive Public Goods Funding Round 3 is currently open, so the Ambassadors discussed projects that have been submitted and how to vote for them. There are currently 643 projects after making the cuts. Lastly, GUNBOATs and Kevin attended Blockchain Genesis for Thailand Blockchain Week 2023, where they represented the Synthetix Ambassadors!


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SIP/SCCP status tracker:

SIP-349: Add crosschain reads with Wormhole CrossChain Queries, Status: draft

SIP-312: Cross-chain Pool Synthesis (V3), Status: draft

SNXweave Weekly Recap 115

https://blog.synthetix.io/snxweave-weekly-recap-115/

November 15, 2023

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.

👉TLDR

  • SIP to deploy V3 on Base is close to a Goerli testnet deployment
  • SIP to enable USDC for Andromeda on Base is in draft
  • Buyback and burn proposal discussion between SC and CCs
  • Audits for two key Perps V3 updates are currently in progress, and audit feedback for L1 Perps is being implemented (SIP coming soon)
  • Descoped V3 features: Cross-margin will be live at launch, but multi-collateral portfolio margin will not be available (work is still in progress to offer support for more volatile assets — expected within a month). All of the other major features promised in V3 will be going live with the first V3 release.
  • Forward-looking partnerships and ecosystem alignment discussion between SC and CCs
  • SIP-345: SNX Buyback and Burn presentation recap
  • SIP-346: Perps V3 Integrator Incentive presentation recap
  • SIP-2035: List TIA on Synthetix Perps presentation recap
  • SIP-2039: List MEME on Synthetix Perps presentation recap
  • SIP-2040: List ANKR, FET, GRT on Synthetix Perps presentation recap
  • Grants Council update: new bot running in Discord (ETH / BTC Ratio), GC is proposing a retroactive grant for the Telegram Bot developer, Watcher page now includes favorites and team is discussing additional exciting social/user features to add to the site.

Spartan Council and SIP updates

Present at the November 8, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Adam, Burt, cyberduck, Genefaesius.eth (Gene), Jackson, Kain, Millie, ml_sudo
Core Contributors: Afif, Cavalier, David, joey, jz, KALEB, Leo, Matt, meb, Rafa, Steve, troy

First up, the SIP to deploy V3 on Base is close to a Goerli testnet deployment, and the SIP to enable USDC for Andromeda on Base is in draft. The Council also had a discussion about the buyback and burn proposal, with Gene voicing some concerns as to whether the right approach was chosen. Millie informed the group that, after some research, Yearn appears to already have a contract written that can execute purchases based on the oracle price of SNX. This SIP was actually presented last week, so let’s briefly review that:

SIP-345: SNX Buyback and Burn

  • After paying integrators, this proposes splitting the fees remaining between Base LPs and SNX stakers, where stakers would receive the rewards via a buyback and burn mechanism
  • Fees would be used to purchase SNX at the current market price via an already developed Yearn smart contract (as mentioned previously)
  • Burning would happen periodically as a manual process
  • This was picked due to its low complexity as a test of a potential fee sharing mechanism on Base
  • Gene is concerned that a buyback and burn is not the most direct way to distribute value back to stakers
  • Millie chimed in adding that this is just the first of what could be many deployments to different chains and it becomes very technically challenging to bring all those earnings back to a single chain
  • Kain suggested a possibility where the treasury could be the only wallet capable of selling SNX, which would slowly deplete treasury holdings over time and further decentralization objectives
  • There was also some discussion about how this should be coordinated with a possible end to inflationary rewards

Next, audits for two key Perps V3 updates are currently in progress, and audit feedback for L1 Perps is being implemented (the SIP is coming soon).

In other discussion, the SC and CCs talked about descoped V3 features. Kain asked for a list of any of the promised features in V3 that had been descoped. Cross-margin will be live at launch, but multi-collateral portfolio margin will not be available, as work is still in progress to offer support for more volatile assets (multi-collateral portfolio margin support is expected within a month). The code will still be going live with the V3 launch, but only with USDC collateral enabled. All of the other major features promised in V3 will be going live with the first V3 release.

While on the topic of possible future V3 deployments, there was also a talk regarding forward-looking partnerships and ecosystem alignment, where Kain shared some ecosystem developments with the SC. Originally, Optimism planned to be a “superchain” L2 that attracted a large portion of the rollup user base. The crypto landscape has changed dramatically, and Optimism has shifted to a strategy of getting as many OP stack chains deployed as possible. However, this shift in strategy has changed the incentives they offer as well.

At the beginning, Synthetix hoped to be the premier Perp product on what was supposed to be a popular L2. Synthetix’s strategy now, as it relates to the Optimism partnership, may need to be reconsidered to optimize protocol value. This will fall to the Treasury Council to negotiate, but since the Spartan Council guides protocol improvement, there needs to be some conversation between the two on the longer-term vision.

Lastly, on top of the buyback and burn presentation, there were a few other SIPs presented last week (all presented by Burt). So let’s review them!

SIP-346: Perps V3 Integrator Incentive

  • This SIP proposes an integrator fee share mechanism for Perps V3, where integrators earn a 20% base fee in sUSD from trades executed through a Synthetix Perps integration
  • The process is fairly straightforward — integrators would sign up for a tracking code to track the markets they’ve deployed and would receive their 20% first
  • The hope is that this provides the best solution to incentivize scaling of Perps markets because they’ll have a vested interest in producing more volume

SIP-2035: List TIA on Synthetix Perps

  • Proposes listing TIA on Synthetix Perps
  • Celestia is an upcoming Cosmos cryptocurrency with a focus on data sampling for other blockchains. It launched on October 17, which provides an early opportunity to offer TIA on Synthetix Perps

SIP-2039: List MEME on Synthetix Perps

  • Proposes listing MEME on Synthetix Perps

SIP-2040: List ANKR, FET, GRT on Synthetix Perps

  • Proposes listing Ankr Network, Fetch.ai and Graph Protocol on Synthetix Perps

All of these markets were chosen based on active volume on other exchanges and in line with Synthetix’s objective of continuing to capture trading volume from new markets. Listing for all three of these SIPs will require Pyth and Chainlink feeds.

Grants Council

Present at the November 9, 2023 Grants Council meeting:
Grants Team: ALEXANDER, CT, MoneyManDoug, sunny, synthquest

In Grants Council updates, in case you missed it, there’s a new bot running in the Synthetix Discord! It’s the ETH / BTC Ratio Tracking Bot:

Speaking of bots, Alex is proposing a retroactive grant for the Telegram Bot developer. We love our bot devs ❤

Also, thanks to the GC, the watcher page now includes favorites. You’ll be able to compile all your favorite traders in one place and tag them with name overrides. Try it out! The team is also discussing some additional exciting social/user features to add, and are working with devs on many new elements of the Watcher Site.

Meanwhile, Sunny is following up with the “Solid-Insight” AI Support/Info service and reviewing the last piece of functionality for the Overtime V3 project, and CT is continuing to reach out to other protocols to remind their OGs to come mine the Spartan Synthverse NFTs.


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SIP/SCCP status tracker:

SIP-336: Deploy V3 Core on Base, Status: approved

SIP-348: Enable USDC for Andromeda on Base, Status: draft

SIP-345: SNX Buyback and Burn, Status: draft

SIP-346: Perps V3 Integrator Incentive, Status: draft

SIP-2035: List TIA on Synthetix Perps, Status: draft

SIP-2039: List MEME on Synthetix Perps, Status: draft

SIP-2040: List ANKR, FET, GRT on Synthetix Perps, Status: draft

SNXweave Weekly Recap 114

https://blog.synthetix.io/snxweave-weekly-recap-114/

November 8, 2023

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.

👉TLDR

  • The SCCP for the Andromeda configuration is in draft — currently specifies no issuance and 125% liquidation ratio
  • SC & CCs discussed SIP-345 (buyback and burn SNX on Base) — mechanism is a dutch auction, but another option is a simple contract that holds USDC and can be called by a keeper to execute market (Cavalier will be updating the SIP to reflect this)
  • Millie voiced opinions about the dutch auction mechanism vs. a contract
  • Testnet trading competition: improvements that came from the trading comp have all been identified. Sunny is updating the SIP with the changes to be presented again next week.
  • Grants Council update: GC is discussing grant for a “Treasury Transaction blocking governance module” & have arranged a “Maya Discord Ticketing System Demo” for CC Matt (who will be drawing up requirements for the trial period that the GC will fund). Team is meeting with the creator of Cryptofees, Notifi is up and running, and the NFTs are being processed to the testnet trading comp winners.

Spartan Council and SIP updates

Present at the November 1, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Adam, Burt, cyberduck, Genefaesius.eth (Gene), Jackson, Kain, Millie
Core Contributors: Afif, Cavalier, joey, jz, KALEB, Leo, Matt, meb, troy

We’ve got a quick update for you guys this week — the SCCP for the Andromeda configuration is currently in draft, and there was some discussion last week around getting USDC to Base. Right now, there is plenty of ETH on Base, but not as much USDC. Fortunately, Circle offers cheap bridging through CCTP.

The draft SCCP configuration specifies no issuance and 125% liquidation ratio. Duck questioned whether this was adequate, and Cavalier said there is no borrowing against USDC, so the only way to get liquidated is if the debt-pool is continuously losing against traders. Kain suggested a SIP explaining all of these details since it’s different from what we have in V2.

Duck questioned whether this was adequate, and Cavalier said there is no borrowing against USDC, so the only way to get liquidated is if the debt-pool is continuously losing against traders. Kain suggested a SIP explaining all of these details since it’s different from what we have in V2.

The Council also discussed SIP-345 (buyback and burn SNX on Base), where the mechanism specified in the proposal is a dutch auction. Another option is a simple contract that holds USDC and can be called by a keeper to execute market purchases (to avoid a complicated development) — Cavalier will be updating the SIP to reflect this.

Millie added that a dutch auction would bring SNX liquidity to Base, whereas a contract to market buy SNX may not (with no other incentive for SNX to be on Base to begin with). He also said there might be some more out-of-the-box dutch auction options that other protocols have used in the past that may work for this purpose. Matt chimed in saying that the aerodrome received from the Velodrome airdrop will be used to direct emissions to a Base pool, so there should be enough liquidity to accommodate what will be relatively small buys. This SIP is being presented today.

As a markets update, the improvements that came from the testnet trading competition have all been identified. Sunny is still in the process of updating the SIP with the changes to be presented again next week. Millie also asked how trading would work on Base. All of the stablecoin pairs would be USDC (rather than sUSD), and traders would bring USDC to Base, then wrap it to trade on Perps V3. Profits will be paid out in USDC as well.

Grants Council

Present at the November 2, 2023 Grants Council meeting:
Grants Team: CT, MoneyManDoug

In Grants Council updates, CT has arranged a briefing session for a Grant application that proposes a “Treasury Transaction blocking governance module.” He has also arranged a “Maya Discord Ticketing System Demo” for CC Matt, who will be drawing up requirements for the trial period that the GC will fund.

The team is also meeting with the creator of Cryptofees to see if it is viable for the Grants Council to take over funding the maintenance and growth of the site, with a focus on promoting Synthetix. There is still some discussion going on here, but it seems like the cost might be too high in comparison to the ROI.

Lastly, don’t forget to check out Notifi, the Grants Council’s newest sponsorship that allows you to receive instant alerts about your staking positions, protocol updates, and other essential reminders. And if you participated in the testnet trading competition and made it on the leaderboard, the GC is processing the NFT winners now!


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SIP/SCCP status tracker:

SIP-345: Buyback and burn SNX on Base, Status: draft

SNXweave Weekly Recap 113

https://blog.synthetix.io/snxweave-weekly-recap-113/

November 1, 2023

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.

👉 TLDR

  • Deploy Synthetix V3 Core on Base: testing on Base Goerli is pending SCCP confirmation with some possible parameters: collateral caps (start small and gradually increase LP and OI caps to allow low-risk monitoring of live data), c-ratio on different collateral types (will likely start between 125–150%), wrapper fee (likely no fee to begin with)
  • Testnet trading competition: report has been published with full breakdown of the competition — nearly $2.7 billion was traded, with over 2,200 trades being executed and 133 unique traders
  • Integrator fee share topic: integrator feedback inquired as to whether there would be a different proposal for different networks and why
  • SIP-2037: List MNT, IMX amd TRB on Synthetix Perps presentation recap
  • SIP-2038: List wstETH on Synthetix Perps presentation recap
  • Notifi: Synthetix just announced a new integration with Notifi, a leading provider of DeFi alerts that brings real-time notifications to users — read below for how to utilize this tool. Shout out to the Grants Council for funding this!

Spartan Council and SIP updates

Present at the October 25, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Burt, cyberduck, Genefaesius.eth (Gene), Jackson, Millie, ml_sudo
Core Contributors: Bex, Cavalier, jz, KALEB, Matt, Steve, sunny, troy

As a core system update, the SC and CCs discussed SIP-336, which will deploy Synthetix V3 to Base. Testing on Base Goerli is pending SCCP confirmation, with these possible parameters:

Collateral caps

  • Since this will be the first mainnet deployment of V3, the plan will be to start small and gradually increase LP and OI caps to allow low-risk monitoring of live data
  • There is a delicate balance between trading activity and liquidity, however
  • Too little liquidity will restrict OI caps, but too much liquidty (and not enough traders) will dilute yield for LPs

C-ratio on different collateral types

  • Discussion started at somewhere between 125–150%
  • Draft will specify 150% c-ratio with liquidations at 120% (further discussion is necessary)

Wrapper fee

  • There was some consensus that there shouldn’t be any fee to begin with (which would help to build liquidity for trading)

ML_sudo also asked how success would be measured in general. From the LP side, a successful deployment would be measured by how much interest there is in liquidity-providing. Whereas on the trader side, a number of metrics would be need to be considered, but performance could be pretty clearly assessed based on comparisons with the Optimism Perps product.

ML suggested a twice weekly update or dashboard so that the CCs and SC can closely monitor the performance of the deployment. Troy said something along these lines is already in the works and has been requested already for the Base deployment. Initially, it would just be an internal resource, but could eventually develop into something that could be shared publicly.

Next, the testnet trading competition report is out — check out the full breakdown here! As detailed in the roundup, traders received part of a total prize pool of $15,000 worth of SNX, 15 KWENTA tokens, and exclusive NFTs thanks to the Synthetix Grants Council. And along with the primary trading competition, participants were also encouraged to report bugs and glitches, which led to improvements in Perps V3 contracts and integrator frontends. Most of these changes are minor, such as improvements around liquidation keeper costs, and are expected to be completed by next week.

Nearly $2.7 billion was traded throughout the competition, with over 2,200 trades being executed and 133 unique traders. Overal the trading competition was a great success, so congrats to the traders who made it on the leaderboard and thanks to everyone who participated!

In other discussion, for the integrator fee share topic, one of the biggest feedback items from integrators was if there would be a different proposal for different networks and why. Optimism is currently the only/biggest volume source (and therefore the only fee generator), so leaving it out of the fee discussion may not be a full step forward.

Millie suggested that the differentiator here is V3 vs. V2 deployments — he agreed that the fee should also apply to Optimism once the V3 migration happens on Optimism. Base deployment is sort of a pre-requisite for a final migration plan for V3 on Optimism, as it will likely provide useful information about collateral types on V3.

There were also a couple of SIP presentations last week, so let’s briefly review them:

SIP-2037: List MNT, IMX amd TRB on Synthetix Perps

  • GUNBOATs presented this proposal, which seeks to list Mantle, Immutable X and Tellor Tributes tokens on Synthetix Perps
  • Pretty straightforward SIP here — these are being proposed based on trading volume

SIP-2038: List wstETH on Synthetix Perps

  • Also presented by GUNBOATs, this is a proposal to list Wrapped Staked Ether from Lido futures on Synthetix Perps
  • This market has been requested by Pyth and Lido as a way to hedge wstETH on chain
  • Gene called attention to the fact that the stETH offering doesn’t seem to be seeing much demand
  • Kaleb identified the potential for traders to frontfun the rebase mechanism

Still waiting on the oracle feeds for these SIPs, so more to come soon.

Lastly, Synthetix just announced a new integration with Notifi, a leading provider of DeFi alerts that brings real-time notifications to users. With Notifi you can now receive instant alerts about your staking positions, protocol updates, and other essential reminders. These alerts can be enabled directly within the staking UI using the bell icon.

It’s super easy to set this up — just look for the notification bell on the Synthetix Staking UI once you’ve connected your wallet, and click on it to select and activate the alerts of your choice. Types of alerts include Synthetix announcements, liquidation warning and confirmation, account snapshots, claim reward reminders, governance updates, and c-ratio health alerts. And these can be received on Discord, Telegram, and email.

The Grants Council funded this initiative, so shout out to them for their help in improving the staking experience. Go check out Notifi!


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SIP/SCCP status tracker:

SIP-336: Deploy Synthetix V3 Core on Base, Status: approved

SIP-2037: List MNT, IMX amd TRB on Synthetix Perps, Status: draft

SIP-2038: List wstETH on Synthetix Perps, Status: draft

SNXweave Weekly Recap 112

https://blog.synthetix.io/snxweave-weekly-recap-112/

October 25, 2023

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.

👉TLDR

  • Testnet trading competition is complete and has led to several product improvement ideas
  • Cross-chain Election Module is nearing completion and a testnet release
  • L1 Perps is moving through audit
  • Work is continuing on the front-end decentralization
  • SC & CCs discussed Kain’s recent blog post: some potential scaling paths for Synthetix where he proposed a few experimental deployments. Read below for more details
  • Integrator fee discussion: current proposed fee is 20%, with 15% in sUSD and the remaining 5% in SNX or commitment to buy SNX. Read below for more details
  • SIP-342: Add missing view functions to access current configurations and state presentation recap
  • SIP-343: Add extra fields to existing Market Events to track market debt changes presentation recap
  • SIP-2036: Revert Inflation Mint on L2 Distribution Failure presentation recap
  • Grants Council update: NFT mint is live, Governance Guide has been published, and V3 Stats Watcher Page is complete

Spartan Council and SIP updates

Present at the October 18, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Adam, Burt, cyberduck, Genefaesius.eth (Gene), Jackson, Kain, Millie, ml_sudo
Core Contributors: Afif, KALEB, Matt, Mike, noah, Noisekit, sunny, troy

First up, the testnet trading competition, which has led to several product improvement ideas, just finished up a couple of days ago. The Core Contributors (CCs) have identified minor updates for the trusted multicall forwarder and the way that price staleness tolerances work. Pyth is actually rolling out an update that will allow for the removal of price optionality from order settlement. The CCs expect there to be enough time for these changes to be made before the Mainnet alpha release.

Next, the Cross-chain Election Module is nearing completion and a testnet release — the CCs are on track to have the code returned to auditors this week. The focus will then shift back to core updates once this is completed.

While L1 Perps moves through audit, work is continuing on the front-end decentralization (the only remaining centralized dependency is a simple educational page hosted on Github).

In other discussion, the council talked about the blog post that Kain recently published, where he discusses some potential scaling paths for Synthetix. He proposed a number of experimental deployments to multiple chains of Synthetix V3 and Perps V3, plus USDC collateral and ETH collateral (and calls this the Andromeda Release/Deployment).

Duck said that he is skeptical of adding another collateral type on Base, but is warming up to the idea of using Base as a sandbox to test different ideas since it’s totally siloed from Optimism. Kain added that Base has a very strong alignment with USDC and, even if this only ends up being exclusively offered on Base, it could produce benefit for the protocol. If it turns out that there is limited demand for USDC LPs, it would be beneficial to figure that out early on (and if demand is strong, offering it elsewhere should be strongly considered).

Experiment 1 (Synthetix V3 + Perps V3 + ETH Collateral), which suggests adding USDC, is already planned for the Base deployment. The reason for this is to gauge demand for LPs offering up different collateral. The proposal sets an initial fee share at 50% for LPs and 50% for SNX stakers (via a buyback and burn mechanism on Base). It further suggests deploying Andromeda to Optimism and Arbitrum, and deploying Carina (ETH-only backed Perps) to Ethereum Mainnet.

If all of the experimental deployments achieve the desired result, the final experiment would be to create an SNX chain, which would be the home for Synthetix governance and allow SNX holders to borrow against their collateral.

Next, the SC and CCs discussed the integrator fee topic, as Burt is in the process of fleshing out the details on the newly proposed fee (which is currently proposed at 20%, with 15% in sUSD and the remaining 5% in SNX or commitment to buy SNX). Kain brought up the fact that Base is a great opportunity to test this fee share structure out as well (20% to integrators, 40% to LPs, and 40% to stakers). Millie suggested that Burt keep the SIP strictly to items that can be accomplished via code changes and settle any of the other parameters with the Treasury Council.

There were also a few SIPs presented last week, so let’s briefly review them:

SIP-342: Add missing view functions to access current configurations and state

  • Presented by Noisekit, this SIP proposes adding a few missing view functions to read current state to be used in UI, tests and other scripts
  • The first is to get available rewards data from the rewards manager
  • The second is to get pool collateral configuration
  • Retrieving this data without these functions is cumbersome, so this is primarily an improvement that will benefit frontends

SIP-343: Add extra fields to existing Market Events to track market debt changes

  • In order to facilitate market’s debt tracking over time, this proposal targets extending existing market events in the Synthetix core system
  • Noisekit explained that the calculation can be made based on other data that is already available, so this SIP essentially adds an additional field to track debt
  • This will allow market performance to be more efficiently tracked over time

Both of these SIPs are the result of feedback received during the implementation of V3.

SIP-2036: Revert Inflation Mint on L2 Distribution Failure

  • Lastly, Kaleb presented this SIP which proposes incorporating a reversion into the weekly inflation mint, if the weekly distribution to L2 stakers fails
  • There was an issue last week with the inflation distribution (there wasn’t enough gas to execute the distribution to L2 so the minted SNX stayed on L1)
  • This SIP would add a single line of code that would revert the transaction if it wasn’t executed as planned
  • This will therefore force the keeper to boost the gas in order to process the transaction and collect the fee

All three of these SIPs have been approved with 8 votes in favor.

Grants Council

Present at the October 19, 2023 Grants Council meeting:
Grants Team: ALEXANDER, CT, MoneyManDoug, sunny, synthquest

Lastly, in Grants Council updates, the NFT mint is live!! And working QUITE well. There are over 7,000 whitelisted accounts that can mint — one mint per account and it’s FREE. Once you’ve minted and the NFT is not showing in OpenSea, use “Refresh metadata” and savor your new Spartan Synthverse NFT.

The GC’s Governance Guide has also been posted to their Medium page, so be sure to check it out for a lot of great information about Synthetix Governance, including proposals, Council mandates, and more.

The V3 Watcher Stats page is also officially complete, so check that out for all of your stats needs!


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SIP/SCCP status tracker:

SIP-342: Add missing view functions to access current configurations and state, Status: approved

SIP-343: Add extra fields to existing Market Events to track market debt changes, Status: approved

SIP-2036: Revert Inflation Mint on L2 Distribution Failure, Status: approved

SNXweave Weekly Recap 111

https://blog.synthetix.io/snxweave-weekly-recap-111/

October 18, 2023

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.

👉TLDR

  • Fee share discussion:
  • Burt brought some numbers to the Council — at 20% liquid fee share, integrators would need to drive volume 33% higher to be profitable
  • Millie thinks this volume increase is possible with the Base deployment
  • Burt said cost to run frontends comes to around $200,000/month
  • dYdX discussion
  • Permissionless derivatives: Kaleb said one of the biggest concerns is how to allow permissionless markets without undercollateralizing sUSD
  • Tokenomics: proposals are being reviewing, ML_sudo is working on a document to asses all of the current proposals side-by-side. There are currently three proposals, and the Council would like to come to a consensus on one and present it to the community.

Spartan Council and SIP updates

Present at the October 11, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Burt, cyberduck, Genefaesius.eth (Gene), Jackson, Millie, ml_sudo
Core Contributors: Cavalier, joey, KALEB, Noisekit, troy

The Spartan Council and Core Contributors started off their meeting last week by discussing fee share. Burt came back with some numbers — at 20% liquid fee share, integrators would need to drive volume 33% higher to be profitable. In response to anyone who argued that 20% would detract from staking rewards, he emphasized that the increased volume would generate 300% in additional fees for stakers.

He highlighted again that there would be no volume without frontends, and there is a pretty clear number where building front ends is not economically viable. That number is less clear for LPs (i.e. at what level of staking rewards does the protocol begin to lose stakers because they are no longer being adequately compensated for the risk they are taking?).

Millie responded by saying there should be some expectation of upfront risk when building out any product, but he thinks a 33% volume increase is possible just via the Base deployment. ML_sudo stressed that this number shouldn’t be set in stone right away, and that there should be the possibility to reassess based on new data in the future.

Burt again brought up that the cost to run frontends comes to around $200,000/month (and Polynomial said they were close to $250,000) — and this is JUST the operating costs. Kwenta has funded some referral programs using the Kwenta token, but Polynomial has held off on launching these programs because they don’t have a way to fund them. Burt also expressed interest in launching a more traditional advertising campaign.

Jackson brought up the fact that dYdX generates $1 billion in daily volume. Split across 3 integrators, this would generate enough fees at 10% to meet the operating budgets and more. Millie thinks one of their big advantages is that they offer USDC pairs (and are not constrained by sUSD liquidity). This is a huge potential bottleneck for a successful Base deployment, Cav will be taking this back to the Treasury Council.

Duck also mentioned that he recently heard a podcast from dYdX where they were talking about building their own app chain and developing their own liquidity layer on that chain. They also discussed permissionless derivatives and ways they could learn from what Synthetix was planning, so he wanted to discuss Synthetix’s progress in permissionless derivatives.

Kaleb said one of the biggest concerns is how to allow permissionless markets without undercollateralizing sUSD, which is being worked on, but the main focus of the CCs right now is the deployment of V3. Cav added that there have been some draft governance proposals for the new V3 markets, and they have helped to demonstrate what third parties need to understand in order to make those markets happen (and the Docs are being improved and updated to reflect that).

The other component is the redesign of the staking interface to support multiple pools and markets. The release and monitoring of Perps V3 should also provide valuable feedback on how the system functions, which would then be relayed to any project that would like to deploy a pool/market of their own. Everything basically boils down to having a good risk understanding of how those markets would impact sUSD.

Lastly, the SC and CCs discussed tokenomics proposals, as ML_sudo has been working on a document to assess all of the current proposals side-by-side. There are currently three proposals, and the Council would like to come to a consensus on one and present it to the community. After getting community input, it should be more clear what priorities need to be met by a specific deadline.

Millie stressed that there may not be a way to approach the tokenomics discussion, specifically highlighting that it’s not totally clear how V3 will perform across multiple deployments. ML countered this by saying it’s important to continue moving the conversation forward, and there can still be discussion on the key principles that the Spartan Council should be considering when making these decisions.

Burt suggested starting with the “lowest hanging fruit” that could be separated out of this larger discussion. For instance, there is consensus that cross-chain fee share should be implemented using cross-chain messaging solutions, so work on this can begin as soon as that solution is fully implemented. And a manual process could be used in the meantime to distribute the fees across chains.


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SIP/SCCP status tracker:

SIP-336: Deploy V3 Core to Base, Status: approved

SIP 341: Add Configurer Address, Status: draft

SIP-342: Add missing view functions to access current configurations and state, Status: draft

SIP-343: Add extra fields to existing Market Events to track market debt changes, Status: draft

SIP-323: Adopt “s” prefix for Synthetix V3 asset tickers, Status: approved

SIP-312: Cross-Chain Pool Synthesis, Status: draft

SIP-337: Perps V3, Status: draft

Synthetix Quarterly Report — Q3 2023

https://blog.synthetix.io/synthetix-quarterly-report-q3-2023/

Quarterly Report for Synthetix, Quarter 3 of 2023: July — September.

👉Q3 Highlights

Spartan Council/CCs: Base Deployment & Testnet Trading Competition
Grants Council: NFT Project & Watcher Page
Ambassador Council: Spartan Spaces & Governance Proposals

As we wrap up the third quarter of 2023, it’s time to review the major events of the last three months — so let’s start with the highlights!

With the V3 core system deployed, the Core Contributors (CCs) directed much of their efforts over the past quarter towards building out Synthetix’s flagship product — Perps V3. A big part of this effort was the development of an Ethereum standard for on-demand off-chain data retrieval (ERC-7412). The testnet competition was originally scheduled for some time in July, but during development it became clear that a solution for reading oracle data across chains was required and Chainlink’s Cross-Chain Interoperability Protocol (CCIP) currently only capable of writing data across chains. This resulted in some minor delays, but the testnet competition eventually had a firm date for the beginning of October after the CCs worked with partners to integrate ERC-7412.

The competition is being held on Base, which brings us to a huge protocol milestone and our next major highlight for the quarter. The idea that Synthetix should be a protocol capable of seamlessly deploying across different chains has been long in the making and V3 has finally made this a reality. Base, which launched in early July, is Coinbase’s L2 built on the OP Stack in collaboration with Optimism. In a show of support for the new L2, Synthetix was one of the first protocols to deploy to Base, though it was just the core system until the competition began on testnet. Cross-chain pools are still in development, however, and staked collateral will remain completely siloed from Optimism for now.

This presented a unique opportunity to test an alternative scaling solution for the protocol — ETH collateral. In another first for Synthetix, all trading activity on Base is planned to be supported by an ETH debt pool rather than SNX. The decision to use ETH collateral was made to avoid fragmenting SNX liquidity across multiple deployments. External collateral has always been a touchy subject and we will dive into that a bit deeper, but this deployment itself represented a net benefit for the protocol and stakers. Every dollar in fees generated on Base using ETH collateral will be an additional dollar of value generated, as opposed to the zero-sum shifting of SNX collateral supporting the Optimism markets over to Base.

Also noteworthy this quarter, nearly thirty new Perps markets were approved with three particularly eye-catching new offerings — ETH/BTC, stETH, and stETH/ETH. These are the first of their kind for Perps offerings on decentralized exchanges, and really showcase the power of the Synthetix product. With reliable price feeds and liquidity, the number of markets that can be created is endless and we are certainly excited to see what a future, possibly permissionless, Synthetix V3 has in store!

Next up, Kain was on the previous Treasury Council and in an effort to bring some transparency to their activity, he developed a Synthetix Treasury Proposal (STP) procedure. Some community members had complained in the past that the Treasury Council didn’t appear to have as much accountability to stakers as the rest of the governance bodies. In September, SNXweave hosted a call to hear presentations on the first few STPs, which highlighted the strategic objectives of the Treasury Council. Most of them seek to allocate funding to necessary functions that do not fit neatly in any current Core Contributor box, but are absolutely critical to continue to grow the protocol (i.e. business development and data analytics teams). A recap of that call can be found here in our previous blog post!

👉Challenges

The main challenges in Q3 have been brewing in the protocol for some time, but are now bubbling very close to the surface as the V3 deployment and migration plan begin to take shape. The first is the tokenomics plan for V3. In the last election, a big talking point was that tokenomics discussions have been ongoing for the entire year with no clear resolution in sight. There are a number of considerations, and it is certainly a challenging issue, but the big question is how to continue accruing value to stakers while growing the protocol.

Synthetix trading activity is supported by a debt pool where LPs stake SNX as the collateral base for the network. This creates an upper bound on scaling potential based on the market cap and price of the SNX token. Without these stakers, there would be no Synthetix, so the challenge is figuring out how to grow the Synthetix pie while also maintaining the value proposition for stakers who have been with the protocol since the early days. There are proposals on the table, even drafted SIPs from TerraBellus and Adam, but neither have been presented for community feedback. Recently, ML_sudo put together a document to assess these proposals side by side, but there has not been material progress made on this front yet.

An alternative that has been floated on several occasions is using ETH as collateral. ETH has very deep liquidity and the competition for yield is relatively thin, with ETH staking generating just 4% annually. The deployment to Base offered a unique opportunity to test the use of alternative collateral, and Adam’s tokenomics proposal suggests 60% for stakers, 20% for Base LPs, and 20% for integrators. With scaling V3 being the goal, the Spartan Council will have to continue looking for opportunities to grow the collateral base beyond what the SNX token is capable of right now. As stakers themselves, and representatives of stakers, maintaining the value proposition for SNX will always be top priority. We will be closely monitoring the Base deployment to see how this experiment plays out.

Towards the end of the quarter, the topic of integrator fee sharing was brought up several times in the Spartan Council meetings. As a brief background, the original fee share program was managed by the Treasury Council. It was a tiered reward system paid in SNX based on volume, but some of the early integrators outgrew the allotted reward so quickly that it was no longer a sufficiently incentivizing driver of volume. Last year, a volume source fee program was proposed that would allow integrators to redirect a portion of fees to themselves. There was some disagreement as to whether this fee should be an addition onto the Synthetix fee or a reduction from the fee accrued to stakers, but it was eventually rejected. The next variation of this proposal introduced a tiered fee structure that would have paid 10% for fees generated under $1 million, 7.5% from $1–5 million, and 5% of fees over $5 million. This payout would be entirely in SNX and would still be a transaction executed by the Treasury Council monthly.

In the most recent Spartan Council meeting, Kwenta, Polynomial and Rage Trade brought a proposal to the group that would direct 30% of the fees towards integrators. In addition to funding operating expenses, this would allow integrators to pursue other promotional activities that should bring more volume to the protocol, since the frontends are where all the volume originates. This is still very much an active discussion, but there seemed to be some consensus that 20% may be more reasonable.

👉Protocol Stats

Overview of Synthetix Q3 Stats: July 2023 — September 2023

Synthetix Quarterly Report — Q3 2023

👉Spartan Council

Q3 2023 Spartan Councilors:

  • Epoch 1 (May-Aug): Adam, Burt Rock, Cavalier, cyberduck, Danijel, dsacks, Jackson, ml_sudo
  • Epoch 2 (Sept-present): Adam, Burt Rock, cyberduck, Genefaesius.eth, Jackson, Kain, Millie, ml_sudo
Synthetix Quarterly Report — Q3 2023

Along with their contribution to the achievement of major Synthetix milestones this epoch, let’s take a minute to review everything else that the Spartan Council was able to achieve in just the last 3 months.

The big win for this quarter was finally getting Perps V3 ready for the testnet competition, which will extend through the end of October. This was mostly a CC effort but the Spartan Council was instrumental in getting quite a few SIPs though governance as quickly as possible so they could continue work on the product. 25 SIPs were approved this quarter, 11 of which were V3-related.

Several of the remaining 25 approved proposals aimed to increase the depth of Perps offerings. At the end of July, several SIPs went out on the Ankaa release to add 6 new Perps markets, including the ETH/BTC ratio market — the first of its kind on a decentralized exchange. Many in the community have been requesting this market for some time as it allows for novel exposure to the top two cryptocurrencies by market cap.

In August, the Enif and Scheat release went out, adding WLD and USDT Perps. The USDT Perps market marked another decentralized exchange first! At the beginning of September, OP trading incentives were extended for another five weeks and the Sabik release went out, adding 19 more Perps markets. By the end of the quarter, the Spartan Council had averaged roughly two new Perps markets per week over the whole 3 months.

👉Grants Council

Q3 2023 Grants Councilors:

  • Epoch 1 (May-Aug): ALEXANDER, CT, JVK, sunny, synthquest
  • Epoch 2 (Sept-present): ALEXANDER, CT, MoneyManDoug, sunny, synthquest

In addition to reviewing multiple Grant applications this quarter, the GC made some serious headway on several of their various projects and initiatives:

Watcher Page

The Council worked hard this epoch to bring several considerable improvements to the Watcher Page, which is the site that allows you to explore trades, trends, and market movements of Synthetix Perpetuals for valuable insights and informed decision making.

They’ve incorporated new features such as ENS address resolving, open interest (OI) charts, staker profit and loss (PNL), and more. One of the most recent additions was a “leaderboard” for wins/losses on trades, positions closest to liquidation, and largest open positions. This site is a very important source of information, providing all the stats related to trading data and information.

Synthetix Quarterly Report — Q3 2023

We know what you’re probably thinking…you’re telling me I can see every open position on Synthetix by each market in one place?? Yes, yes we are.

BOTS

A classic Grants Council highlight here — the team continued their general Bot maintenance on all of the existing Synthetix Discord Bots, and also updated their new SNX Whales Twitter Bot. These Bots are valuable daily tools that help assist traders, stakers, and arbooors alike. Be sure to check them out in Discord and on Twitter, and let the GC know your thoughts and feedback in the grants-council channel.

NFT Project & LORE

THE NFT PROJECT DROPPED IN JULY!!! This has been a long time coming for them, and was worth the wait. As a reminder, the different Tribes are:

  • Human: Spartans
  • Human: OG Spartans
  • Human: Legendary Spartans
  • Human: Demigod Spartans
  • Dwarfs
  • Elementals
  • Mechanoids
  • Philosophers
  • Alien Elves
  • Undead
  • Trolls

The Council has continued to share more information with the community about this project as they progress through the different phases that they announced:

  • Phase 1: Pre-mint 192 NFTs for the Grants Council ✅
  • Phase 2: NFT Auction to help raise awareness of the project, Synthetix, and Optimism L2 ✅
  • Phase 3: Synthverse LORE reveal ✅
  • Phase 4: Community Whitelist Mint of 2,000 NFTs
  • Phase 5: Open Mint of 3,000 NFTs (only if demand is high)
  • Phase 6: Additional Mint phases can be opened up — until we reach the max cap of 10,000 NFTs — if the demand is there

They also released their lore for the NFTs, called “THE SYNTHVERSE.” This otherworldly tale features detailed stories of Earth Under the Olympians, The Elysion Initiative, The Synthverse, The Troll Invasion, The Fall of Mount Havven, and the Current Crisis that ties it all together. Be sure to read the full Lore here to transcend reality and get excited about these NFTs!

Synthetix Quarterly Report — Q3 2023

The GC also ran an auction for a few rare NFTs, all with unique objects or attributes:

Now that they’ve completed the first few phases of their plan, the team is now working on deploying the free mint. Keep a lookout for this SOOOON!

V3 Help

The Council also did a lot to help promote V3, such as: providing NFTs as prizes for the Perps V3 testnet trading competition on Base, updating and maintaining basic core V3 stats on Dune, and continuing work on the Community Governance Guide Document.

Flipside Data R&D Completed

This project was started by synthquest a few months ago, and was completed this quarter! He led research and development (R&D) to work with Flipside as an alternative data source for Synthetix. This initiative unlocked the ability to follow metrics like total SNX holdings (escrow and liquid), C-Ratio, debt balance (SDS), staker distribution stats, at-risk-of-liquidation stats, and so much more.

This has already been used to help verify models built by researchers and has been added to the queryable schema sidebar, allowing analysts to easily access this data on Flipside. The GC also gave a shout-out to Kaiblade and metricsDAO for assisting with this project and helping obtain accurate and reliable data for Synthetix!

What’s next for the Grants Council?

The GC has the following items on their ongoing/upcoming list:

  • Notifi: The Council has been working with CC Matt to utilize Notifi within Synthetix, which will serve as Synthetix’s new notification solution, and will help deliver real-time notifications about C-Ratio, account summaries, rewards reminders, announcements, and more to users. Matt just shared Notifi with The 300 to help test it out, so we should be seeing this soon! (As a reminder, Notifi powers personalized interactions and cross-chain communications between web3 builders and their users — it is a suite of blockchain tools for notifications, real-time alerts, and growth marketing, designed to deliver a seamless Web3 experience in DeFi, NFTs, Gaming, DAOs, and beyond)
  • The Watcher Page: The team is looking for additional devs to work on more updates and enhancements to the page, as they have a long list of enhancements that they are working on and plan to incorporate to help expand and enhance the site.
  • New V3 Stats page: The GC also looking for a dev to convert the Dune dashboard into a basic stats page
  • Retroactive Grants: Looking to issue RGs to community devs
  • Various R&D
  • Funding of Base testnet trading comp
  • Community Governance Guide Document: Work is almost done on the doc!

👉Ambassador Council

Q3 2023 Ambassador Councilors:

  • Epochs 1 & 2 (May-present): GUNBOATs, Kevin, mastermojo, Matt, Westie

The role of the Ambassador Council is the promotion of Synthetix’s interests within the wider decentralized finance ecosystem. This is conducted through two primary activities: 1) participation in the governance of related DAOs and 2) establishing collaborative relationships with like-minded projects.

By way of governance powers delegated to it, the Ambassador Council is expected to seek to influence protocols in a manner that is beneficial to the Synthetix project, voting on proposals that align with the project’s interests. When engaging in collaborations, the Ambassador Council is tasked with working with existing and prospective collaborators, such as protocol integrators, addressing their needs and guiding them through the Synthetix ecosystem and external grant programs.

Outside of these two principal activities, the Ambassador Council is also expected to maintain the accessibility of the Synthetix community to new members and actively introduce DeFi projects to it through collaborative media initiatives that bolster engagement.

So, let’s review what the Ambassadors did this quarter!

✅ Governance/General

Voting Activity can be followed using these links:

1. General Governance

The Ambassadors played an active role as delegates at Optimism, Hop, Gearbox, Euler, Aave, Uniswap, ENS, and now Arbitrum. They have also served on the councils at Optimism, badgeholders, etc. where Synthetix has been able to lobby for the interests of Optimism and push it towards further growth.

  • Optimism RPGF Round 3 is open and the SNX Ambassadors are encouraging projects to apply — the deadline is October 23rd to get applications in!
  • The Citizens’ House expanded to ~138 badgeholders and will reward 30M OP in Retroactive Public Goods Funding (RPFG) Round 3. New Badgeholders (on top of Matt and Mojo) are Westie and Millie!
  • OP Grants Cycle 14 Final Grants Roundup
  • OP Grants Cycle 15 Final Grants Roundup — this included Kwenta/Lyra receiving OP grants
  • Optimism Season 5 is gearing up, and the Ambassadors are prepping for it
  • The Ambassadors Voted Yes on an important proposal to introduce Lyra V2 and establish the Lyra foundation

2. Partner Support and Onboarding

Partner support continues to be another central focus of the Ambassador Council, and can be broken into two sections:

Current Partner Support:

  • The focus here is on current volume drivers, which includes Kwenta, Polynomial, Lyra, dHEDGE, Infinex, and so on. The Ambassadors have been checking in with partners to get feedback on their experience with building on Synthetix and if they require any governance support in any way.
  • Not only have they supported partners through feedback, but they’ve also helped guide these partners (and the Core Contributors) through OP’s RPFG & OP Grants.

Future Partners:

  • The Ambassadors are in talks with potential perp partners and other tools, which is a group effort alongside the Grants Council and other teams. As of right now, this list includes: Rage Trade, Mux, Sonic, Copin, and potentially more.

3. Published Materials

This quarter, the Ambassador Council:

4. Optimism Governance Forum Activity:

As previously mentioned, the Synthetix Ambassadors have a major voice in Optimism Governance. Their respective OP Governance Forum Activities can be found using these links:

It’s important to note that the Optimism Governance forum is only one area of activity. Most activity at this point for OP grants lives on their Charmverse & Discord.

✅ Spartan Spaces

Spartan Spaces continued to serve as important community marketing tools this quarter, with the Ambassadors hosting calls and attending other DAO’s calls on behalf of Synthetix.

1. Rage Trade (Length: 40 minutes)

  • Guests: Viperr & Athanase
  • Dove into Rage Trade’s upcoming integration with Synthetix Perps V3, and their strategy for aggregating perps across various protocols, and cross-chain aggregation.
  • Recording here

2. Synthetix Perps V3 Review (Length: 45 minutes)

  • Guest: Sunny
  • Explored new features, integrator possibilities, and benefits of building on V3 infrastructure.
  • Recording here

3. Tasty Crypto (Length: 45 minutes)

4. SNX Grants

  • Guests: CT & JVK
  • Discussed Synthetix Grants and their NFT project, Synthverse
  • Recording here

5. Ethena Labs (Length: 55 minutes)

  • Guests : Kain, Afif, and Leptokurtic & Conor from Ethena
  • Discussed Ethena Labs’ integrations with Synthetix Perps and V3, and a conversation around the decentralized stablecoin landscape.
  • Recording here

6. Chainlink (Length: 55 minutes)

  • Guests: Kemal, Pieter, & Noah
  • Dove into Cross-Chain Synthetix, Synth teleporters, CCIP benefits for V3, and more.
  • Recording here

✅ Synthetix Governance Proposals

1. SIP-2023: Add XMR to Perps V2 (author: GUNBOATs)

2. SIP-2024: Add ETC and COMP to Perps V2 (author: GUNBOATs)

3. SIP-2025: Add MAV to Perps V2 (author: GUNBOATs)

4. SIP-2026: Add YFI and MKR to Perps V2 (author: GUNBOATs)

5. SIP-2027: Add RPL to Perps V2 (author: GUNBOATs)

6. SIP-2028: Add WLD to Perps V2 (author: GUNBOATs)

7. SIP-2029: Add SEI to Perps V2 (author: GUNBOATs)

8. SIP-2031: Add stETH/ETH on Synthetix Perps (authors: Seraphim & GUNBOATs)

9. SIP-2033: List assets with Chainlink and Pyth feed deployed on Perps V2 (author: GUNBOATs)

10. SIP-2022: Add wsteth/usd to Synthetix Perps (author: Matt, Justin [Lido], Westie, GUNBOATs, Kevin, & MasterMojo) — this SIP was rejected

❤️Special Thanks: To anyone that delegated to the SNX Ambassadors, thank you! Hope you’re enjoying your airdrop!

What’s next for the Ambassadors?

The Ambassadors biggest pushes for Synthetix will be seen in two main areas:

1. Partner Support — Guiding partner projects through grant programs and other incentive areas that can best support them on Optimism, Base, etc. As mentioned, they’ve already seen great success in this area, and have successfully guided countless partner projects & CCs through these programs (which has helped them secure large amounts of valuable funding).

2. Synthetix V3, Perps V3, and Base Support — With the upcoming V3 launch on Base, Synthetix must establish a foothold on DEX’s, lending protocols, bridges, and others areas to help improve the overall experience. This is something that is a top priority for the Ambassadors, and has already begun with Matt passing a SIP to bring wrapped SNX to Base.

👉Best Memes from Q3

The quarter of COURSE wasn’t without humor, so here are our favorite memes from the quarter:

Synthetix Quarterly Report — Q3 2023
Synthetix Quarterly Report — Q3 2023
Synthetix Quarterly Report — Q3 2023

SNXweave Weekly Recap 110

https://blog.synthetix.io/snxweave-weekly-recap-110/

October 11, 2023

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.

👉TLDR

  • PoC for cross-chain pool synthesis (SIP-312) is continuing — CCs are exploring a solution using Wormhole
  • Testnet trading competition is still live, CCs have identified a number of core changes
  • Focus is now shifting towards the staking dApp for V3
  • SC & CCs had an extensive discussion regarding integrator profitability, read below for full details
  • Grants Council update: Team is considering retroactive grant to Copin, Watcher Page is live, CT is working on finishing touches to governance doc, NFT free mint dropping soon, Notifi project with Matt is being tested with The 300

Spartan Council and SIP updates

Present at the October 4, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Adam, Burt, cyberduck, Genefaesius.eth (Gene), Jackson, Millie
Core Contributors: Afif, Cavalier, KALEB, noah, Noisekit, sunny, troy

First up, for our work in progress update, proof of concept for the cross-chain pool synthesis SIP is continuing to develop. The CCs are exploring a solution using Wormhole, which is a cross chain messaging platform that allows developers to build decentralized applications that span the entire blockchain ecosystem. Wormhole is currently working on a product called cross-chain queries, which is closest to satisfying the technical spec required for Synthetix of any cross-chain messaging solution.

For markets, the testnet trading competition is still live! Most of the CC attention has been on the competition this past week, as they have identified a number of core changes. The focus is now shifting back towards the staking dApp for V3 as more realistic data comes in from the competition. The CCs are also in the process of reviewing the second audit report for SIP-337, Perps V3, and its fixes are close to completion.

In other discussion, the SC and CCs discussed integrator profitability last week, with Burt bringing up integrator costs. He mentioned that operating costs for Kwenta come out to around $200,000/month. Kwenta has received some grant support from OP, but that’s not expected to be an ongoing source of funding to cover operating expenses so, looking forward, fee sharing will have to provide enough incentive to continue maintaining Kwenta (and most likely other integrators).

Millie brought up that Synthetix generated $1.2 million in fees over the past 30 days, so three integrators at $200,000 per month would require a fee share over 50%. Burt countered by saying even some fee share would free up funds that could be used for further development and promotion that could drive volume increases. He continued, saying that the goal should be to set achievable targets for both profitability of integrators and net benefit to Synthetix.

Kwenta, Polynomial, and Rage have floated 30% as a starting point for the discussion (in some combination of fee share and locked SNX from the Treasury). This is the number at which integrators feel like they may be able to support their operations while also adding value for the ecosystem.

Adam said he most likely wouldn’t vote for any higher than 20% unless there was a clear, measurable plan for an increase in volume. He also highlighted that this creates an incentive for integrators to participate in growing the collateral base, which creates better alignment between partners. If a portion of that funding is diverted to SNX for staking, the effective rate would be closer to the 30% target, after staking rewards are factored.

Duck said he would also fall somewhere between 20–30%, maybe 20% in sUSD and a possible 10% in locked SNX. The idea of 25% while requiring 5% open market purchases was also discussed, which has the added benefit of supporting SNX price and creating more protocol liquidity that drives volume.

Gene is concerned that a flat fee share may pull value directly from stakers without necessarily having the increased volume outcome. Burt responded to this by saying Kwenta, as the largest driver of perps volume in the ecosystem, would benefit from a tiered fee share structure, but he thinks a flat fee is better optimized for creating competition. Gene countered by saying the tiered system incentivizes “growing the pie” and simply increasing the fee share wouldn’t necessarily compel integrators to chase more volume. He acknowledged that the model is not sustainable for integrators as it is now, and that the fee share needs to increase. But even at 20%, he said he would like to see it come with some conditions.

Grants Council

Present at the October 5, 2023 Grants Council meeting:
Grants Team: ALEXANDER, CT, synthquest

In Grants Council updates, the team is considering a retroactive grant for Copin, as well as various community members who contributed to the open source dev work. The Watcher Page is also live, and CT is working on adding finishing touches to governance docs. AND the NFTs will be launching soon as a free mint!! Keep your eyes peeled for an announcement there.

Also, that project we mentioned a few months ago with Notifi that Matt brought to the GC’s attention? Well, it’s almost finished! Matt actually shared Notifi with The 300 to help test it out. It will serve as Synthetix’s new notification solution, and will help deliver real-time notifications about C-Ratio, account summaries, rewards reminders, announcements, and more to users. If all goes to plan, this will be available publicly soon!


Subscribe to our YOUTUBE

SNXweave Anchor Podcast: https://anchor.fm/snxweave

Follow us on Twitter! @snx_weave


SIP/SCCP status tracker:

SIP-312: Cross-Chain Pool Synthesis, Status: draft

SIP-337: Perps V3, Status: draft

SNXweave Weekly Recap 109

https://blog.synthetix.io/snxweave-weekly-recap-109/

October 4, 2023

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.

👉TLDR

  • Perps V3 Base Testnet Competition: Officially begun! The competition will conclude on October 23rd at midnight UTC. If whitelisted, you can participate via Kwenta or Polynomial’s Perps V3 interfaces. Read below for more details about rules.
  • SIP-323: Adopt “s” prefix for Synthetix V3 asset tickers has been approved by auditors
  • V3 Migration: Following the testnet competition, the current plan is to do a limited Mainnet alpha release with Perps as the first live test for connected V2 and V3 systems.
  • Reward distributor design: Duck questioned how fees for Base activity would be distributed to stakers on Optimism or ETH Mainnet and if that should be considered in the design of V3 — this started a discussion amongst the SC and CCs. Read below for the full discussion.
  • SIP-341: Add Configurer Address presentation recap
  • Grants Council update: NFT website and auctions are live, mint coming very soon! Trading comp NFT rewards have been finalized, team is in the process of choosing a dev for the V3 dune analytics stats front-end, and Sunny is meeting with the devs who are working on the Thales Overtime market on V3. The Governance guide is coming along nicely, team has also been discussing some possible retroactive grants, and the GC has enabled tracking open interest and profit/loss to the Watcher Page, with open position tables coming soon.
  • Ambassador Council update: Team discussed Spartan Space last week with Rage Trade, the Optimism Badgeholder Call, the Season 4 Roundup, and feedback from OP’s Retroactive Public Goods Funding Round 3. Also helped provide feedback on Synthetix V3 docs for the CCs, discussed their next Spartan Space with Infinex, future Perps Listings, and the Trading Competition on Base.

Spartan Council and SIP updates

Present at the September 27, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Adam, Burt, cyberduck, Genefaesius.eth (Gene), Jackson, Millie, and ML_sudo
Core Contributors: Afif, Cavalier, db, jz, KALEB, Mike, noah, sunny, troy

First up, the Perps V3 Testnet Trading Competition has officially begun! It started two days ago and will conclude on October 23rd at midnight UTC. You can participate in the competition via Kwenta or Polynomial’s Perps V3 interfaces — but don’t forget to connect to the Base Goerli Testnet for trading! Be sure to check the public notion page for the full list of whitelisted participants to see if you’re part of the chosen pool to compete, and visit the leaderboard site for real-time competition standings.

As far as rules go, trading is allowed at any time within the competition period, but transferring balances between wallets or trading accounts is prohibited and will lead to disqualification. Be sure to also keep an eye out for any glitches and report them in the #v3-bug-report channel of the Synthetix Discord (or your respective frontend integrator). Bug bounty prizes will be awarded based on severity for smart contract and webapp bugs, as outlined on Immunefi. Rewards range from $1,000 to $10,000 for smart contract bugs, and $300 to $1,000 for webapp bugs.

So get to trading, see you on Base!!

Next up, in core system updates, SIP-323 to adopt an “s” prefix for Synthetix V3 asset tickers has been approved by auditors. Check out this link for a technical spec clarification document that explains more details about the changes this SIP will bring.

The SIP for the cross-chain election module is also in audit — the CCs will begin processing feedback this week as their primary focus has been the testnet competition up until now.

The team also discussed the V3 migration, as the legacy market audit fixes are being finalized and implemented. Following the testnet competition, the current plan is to do a limited Mainnet alpha release with Perps as the first live test for connected V2 and V3 systems. Overall, the plan is still to have a progressive migration, allowing users to migrate as the incentives change.

In other discussion, ML_sudo is working on a template to compare the V3 tokenomics proposals. During the meeting, Duck also asked about the reward distributor design, which allows fees generated to be distributed to SNX stakers. With the base deployment only supporting ETH collateral, Duck questioned how fees for Base activity would be distributed to stakers on Optimism or ETH Mainnet and if that should be considered in the design of V3.

Millie brought up the fact that other protocols have adopted a fractured staking model, which limits liquidity availability on many chains. He agrees that fees should accrue to stakers regardless of what chain they’re on. Noah explained that, by default, fees generated on a chain would be deposited into the market manager, which would reduce debt for the LPs supporting that market. They can, however, be sent to the rewards distributor, which can distribute them across multiple chains if needed.

Another suggestion is the possibility of SNX buyback and burn, which could be automated and would benefit any holder of the token. Millie proposed a dutch auction style solution where an initial price is set by the Spartan Council and would drop at pre-determined intervals until the SNX is depleted.

Gene and Adam shared some concerns about the idea of buybacks. They acknowledged that it might be the quickest solution currently, but Adam said he’s concerned that it may incentivize users to just hold SNX rather than stake it (which generates the collateral base on top of which the entire protocol operates). He suggested accruing the excess fees to a multisig that might be used later to incentivize LPs as the protocol scales (they could also be bridged to Optimism or Ethereum and distributed there). There was some consensus on this approach after further discussion.

Next up, there was a SIP presentation last week: SIP-341 to add a configurer address that can execute SCCPs. Currently, the owner address can run protocol upgrades (i.e. execute SIPs) and call permissioned functions, which then execute SCCPs. This SIP would add the option to add another address that could execute SCCPs but not SIPs. This upgrade would allow some flexibility in how SIPs and SCCPs are executed in V3, pending governance approval of new processes. If the protocol got to the point of immutability (i.e. no further code changes), there will still likely be a need for the ability to process configuration changes, and this upgrade puts the mechanism in place to allow that.

Grants Council

Present at the September 28, 2023 Grants Council meeting:
Grants Team: ALEXANDER, CT, MoneyManDoug, synthquest

In Grants Council updates, the NFT website and auctions are live, mint coming very soon!! The trading competition NFT rewards have also been finalized and are ready to be handed out to winners at the end of the comp.

The team is also in the process of choosing a dev for the V3 dune analytics stats front-end, and Sunny is scheduled to meet with the devs who are working on the Thales Overtime market on V3. The Governance guide is also coming along nicely, and the team has been discussing some possible retroactive grants. Lastly, we mentioned last week that the GC has integrated ENS resolution into the Watcher Page, and now they’ve enabled tracking open interest and profit/loss, with open position tables coming soon!

Ambassador Council

Present at the September 26, 2023 Ambassador Council meeting:
Ambassadors: GUNBOATs, Kevin, MasterMojo, Matt, Westie

In Ambassador updates, the team discussed information relating to Rage Trade prior to their Spartan Space with them last week. They also discussed the Optimism Badgeholder Call, the Season 4 Roundup, and feedback from OP’s Retroactive Public Goods Funding Round 3. The Ambassadors also helped provide feedback on Synthetix V3 docs for the CCs, discussed their next Spartan Space with Infinex, future Perps Listings, and the Trading Competition on Base.


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Follow us on Twitter! @snx_weave


SIP/SCCP status tracker:

SIP-323: Adopt “s” prefix for Synthetix V3 asset tickers, Status: approved

SIP-341: Add Configurer Address, Status: draft

SNXweave Weekly Recap 108

https://blog.synthetix.io/snxweave-weekly-recap-108/

September 27, 2023

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.

👉TLDR

  • V3: nomenclature discussion
  • Perps V3: Noah gave an overview of ERC-7412, explaining that a standardized pattern for retrieving oracle data that can be used throughout the protocol is needed for pulling price data on-chain
  • Perps V3 Base Testnet Competition: Starting October 2nd! Read below for prize details & see blog post for more info
  • Fee sharing: some integrators have expressed interest in meeting with the SC to discuss fee sharing (both with partners and Base LPs) — mainly would like to discuss how fees will be allocated in an environment with a new collateral type (ETH) being siloed exclusively on base
  • SIP-340: Add Trusted Multicall Forwarder presentation recap
  • SCCP-307: Thales — Create Pool and register Market presentation recap
  • SIP-2034: Deprecation of pDAO and Introduction of Risk Council presentation recap
  • Grants Council update: Supplying NFTs for testnet competition prizes, Jakub is working with GC on the NFT website to get app hosted, Sunny is running a test for a rebalance scenario for Overtime Markets, team discussed a large grant request that they received and ultimately voted against, ENS names have been integrated into the Watcher Page and the Council is now working on adding the Perps landing page and the V3 stats page — still looking for a frontend dev for this, and the governance guide doc is almost finished

Spartan Council and SIP updates

Present at the September 20, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Burt, Cyberduck, Genefaesius.eth (Gene), Jackson, Millie, and ML_sudo
Core Contributors: Afif, Cavalier, Jakub, KALEB, Mike, noah, Noisekit, troy

First up, let’s talk nomenclature — specifically for V3 synths. SIP-323 to adopt the “s” prefix for Synthetix V3 asset tickers has already been voted on and approved, but some concerns were raised at last week’s meeting regarding any notifications to other protocols that may be required to ensure a smooth transition for this.

The main priority now is getting the Base deployment rolled out for the Perps V3 testnet competition, including the required ERC-7412 implementation for integrators. And speaking of ERC-7412, Noah gave an overview for the team last week. Basically, a standardized pattern for retrieving oracle data that can be used throughout the protocol is needed for pulling price data on-chain. R&D is in progress for use of this functionality with cross-chain synthesis as well.

The ERC allows a standardized error message to be generated (and used by any application) if data is attempting to be read for a specified contract and is not returning a value. The error message can then be used to automatically create a multi-call that provides that oracle data and verifies it. From an end user UX perspective, this is still accomplished within a familiar transaction interface. One of the biggest challenges was reliably generating the multi-call, but the CCs think they’ve developed a good solution for this. Practically speaking, this will allow all Synthetix products to be deployed without any dependencies on push oracles.

But speaking of the testnet competition…the launch date was announced yesterday!! It will start on October 2nd on Base Testnet, and the winners will be selected based on their trading performance, with the highest returns taking the largest rewards:

  • 1st place: $5,000 SNX + 5 Kwenta tokens
  • 2nd place: $2,500 SNX + 4 Kwenta tokens
  • 3rd place: $1,000 SNX + 3 Kwenta tokens
  • 4th place: $500 SNX + 2 Kwenta tokens
  • 5th place: $500 SNX + 1 Kwenta tokens
  • 6th-10th place: $500 SNX

So be sure to check out the blog post about the trading competition to read more details and learn how to participate!

In other discussion, Burt brought up the fact that some integrators have expressed interest in meeting with the Spartan Council to discuss fee sharing (both with partners and Base LPs). The major point they would like to discuss is how fees will be allocated in an environment with a new collateral type (ETH) being siloed exclusively on base. This potentially has a material impact on how liquidity will be allocated across deployments and there would need to be sufficient incentivization to attract ETH LPs.

Afif explained that this will likely be an iterative process and the CCs/SC should expect to have to monitor the cost benefit of these programs and adjust accordingly. Base is the perfect test case for this, as any value generated there would be net positive for the protocol and not detract at all from current SNX LPs. ETH as collateral on Base is also far more preferable to fragmenting current SNX liquidity across deployments.

Next up, there were a few SIP presentations last week, so let’s briefly review them:

SIP-340: Add Trusted Multicall Forwarder

  • This SIP would be the multicall solution that we previously mentioned in the ERC-7412 overview, and would therefore be a prerequisite for its implementation
  • There is currently an EIP in review that would allow users to convert their EOA (Externally Owned Accounts) into smart contract wallets capable of executing multicalls. This requires manual input from users, however, so this SIP provides a workaround for EOA compatibility in the meantime
  • There is an existing ERC standard that requires a protocol change to support trusted multicallers
  • This proposes adding support for the standard for gasless transactions and adding multicall functionality to that as the most efficient way to accomplish both objectives
  • Noah explained that the benefit here is being able to provide the option for gasless transactions for those who want it, while being able to deploy the system to use any price feeds available and eventually implement cross-chain pool synthesis with the same pattern

SCCP-307: Thales — Create Pool and register Market

  • This SCCP was presented by Cyberduck and would create a Thales Pool and register the Thales Market on Synthetix V3, enabling SNX LPs to gain exposure to Thales and Overtime AMMs and their respective yields
  • Users would delegate SNX, sUSD will be minted and sent to AMMs to back trading activity, and yield or loss would be distributed back to LPs
  • There will be a minimum delegation time of 2 weeks to avoid frontrunning, and there will be an automated keeper rebalancing the accounting after every week-long epoch
  • There will also be a minimum credit parameter which would cap total withdrawals (and maintain a base level of liquidity provided to Thales AMMs)
  • Prior to permissionless pool creation, all new pools require SCCP approval by the SC
  • This presentation served as a way to get initial feedback before Thales begins work on implementation

SIP-2034: Deprecation of pDAO and Introduction of Risk Council

  • Presented by Kain, this SIP proposes to deprecate the current pDAO (protocolDAO) and replace it with a more transparent and accountable governing body, the Risk Council
  • As it currently stands, the pDAO (an unelected body) maintains full control over protocol upgrades
  • The motivation behind this SIP is to bring control of that body back to the community
  • This new, elected body would control protocol releases and ensure deployed contracts are not malicious or broken
  • There are still some technical details that need to be worked out in terms of how this is achieved, including possible veto and override powers
  • Some concerns were brought up around the technical competency required for this role, as well as the possibility that this adds a governance body that is in direct competition with the SC
  • Kain highlighted that we already have a competing body that is not directly accountable to the community (an issue this SIP aims to resolve)
  • Cyberduck suggested adding a community vote backstop as a layer of security if the SC believes that the Risk Council is not acting in the interests of the community
  • Kain said the existing emergency election mechanisms allow for resolutions of these issues by getting community governance input without a direct token holder vote
  • Mandate for the Risk Council would be strictly technical and risk assessment focused, and would not include voting on protocol changes, but rather whether those changes are technically/financially sound and ready for deployment
  • There was some agreement that there would have to be some dissolution mechanism (controlled by the SC) if the Risk Council is not doing their job adequately
  • This is a meta-governance SIP and is still a work in progress

Grants Council

Present at the September 21, 2023 Grants Council meeting:
Grants Team: ALEXANDER, CT, MoneyManDoug, Sunny, synthquest

Next up, in Grants Council updates, the team has been working to help with the Perps V3 testnet competition and will be providing exclusive NFTs to winners! And speaking of NFTs, Jakub is working on the website for the GC to help get the app hosted sooooon.

While CT picks the NFTs for the trading comp winners, Sunny has been assigned to run a test for a rebalance scenario for Overtime Markets and Alex is looking into getting APIs from centralized exchanges.

In addition to their individual tasks, the team also discussed a large grant request that they received and ultimately voted against (4/5 NO votes) — Doug will be providing a write-up for this soon. Next, for the Watcher page, the ENS names have been integrated and the Council is now working on adding the Perps landing page and the V3 stats page. They are currently still looking for a frontend dev for this. The team is also getting really close to finishing the governance guide doc!


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SIP/SCCP status tracker:

SIP-323: Adopt “s” prefix for Synthetix V3 asset tickers, Status: approved

SIP-340: Add Trusted Multicall Forwarder, Status: approved

SCCP-307: Thales — Create Pool and register Market, Status: draft

SIP-2034: Deprecation of pDAO and Introduction of Risk Council, Status: draft

SNXweave Weekly Recap 107

https://blog.synthetix.io/snxweave-weekly-recap-107/

September 20, 2023

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.

👉TLDR

  • stETH/ETH, ZRX, and UMA perpetual futures markets were added to Synthetix Perps
  • V3: The third major upgrade to the core system was released (SIPs 323, 326, and 331–335). CCs are working on building a cross-chain pool synthesis proof of concept using cross-chain read oracle ERC-7412
  • Perps V3: SIP is still in draft, but the fixes from the second audit report are being finalized.
  • Testnet trading competition to start next week, and will likely run for several weeks
  • L1 Perps audit is in progress — protocols like Ethena have expressed interest
  • Debt migration was discussed further by SC & CCs — was ultimately deemed not a top priority right now
  • V3 migration will follow a similar progression to the Perps V2 rollout — plan is to launch to Mainnet with tight OI caps to watch the performance with real trades. Earliest possible full-scale launch sometime in November or December.
  • SC & CCs discussed plans to incentivize stakers to make the move to V3
  • The updated election system code is being finalized for audit, and the SIP for the Cross-chain Election Module (V3GM) is being drafted
  • SCCP-305: BetSwirl — Create Pool and register Market presentation recap
  • SCCP-306: Create the Kwenta Pool presentation recap
  • Grants Council update: Investigating adding default Github account to SIP submission UI for those without an account, V3 stats page version 0.1 will be started soon, NFT lore writer payment being processed, Sunny to help deploy NFT website, Governance Guide Doc to be updated with each Council’s “Mandate” (working to get TC & SC to sign off on theirs), planning to migrate Perps Landing page data/info to Watcher page, V3 Overtime Markets specs about to be finalized — then development can begin

Spartan Council and SIP updates

Present at the September 13, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Adam, Cyberduck, Genefaesius.eth (Gene), Millie, and ML_sudo
Core Contributors: Afif, KALEB, noah, Noisekit

First up, Synthetix has just announced the addition of stETH/ETH, ZRX, and UMA perpetual futures markets, all now available for leverage trading via Synthetix Perps!

For V3, the third major upgrade to the core system was released, including SIPs 323, 326, and 331 through 335. Noah is in the process of updating the docs to reflect these changes. The team is now working on building a cross-chain pool synthesis proof of concept using cross-chain read oracle ERC-7412.

A big part of this effort was laying out the standard in ERC-7412 to allow CCs to start building to that standard for all oracle data consumption (price feeds, cross chain reads, etc.). This is supplementary to CCIP, which enables protocols to call functions on other chains (whereas ERC-7412 allows an oracle to read the value of a function on another chain and report back). Basically, CCIP is a way to write across chains, and V3 needed a way to read across chains. This initiative is the next big priority after Perps V3.

And speaking of Perps V3, the SIP is still in draft and fixes from the second audit report are being finalized. The testnet trading competition is scheduled to start next week and will likely run for several weeks. Partners are also developing front-ends for the competition, as well as finalizing ERC-7412 support before full completion. The L1 Perps audit is also in progress, and protocols like Ethena (a dollar-pegged stablecoin) have expressed interest in using this.

In other discussion, SIP-237 for the L1 to L2 debt migration was discussed by the SC and CCs last week. It was brought up again that there is still no UI for debt migration, and that SIP-237 just solves the problem of migrating debt positions from Ethereum Mainnet to Optimism.

Noah suggested that it might be more valuable to explore front end needs once it’s clear where the liquidity in V3 is needed the most. The contract can be called in Etherscan, and it’s possible that the few users who want to make use of this feature could do so without a UI. However, it’s estimated that 60–70% of the SNX on L1 is in Gnosis Safes, which are not supported by SIP-237. The consensus was that this is not a top priority right now.

But while we’re on the topic of migration, the SC and CCs also discussed the V3 migration (SIP-306). Following a similar progression to the Perps V2 rollout, the plan would be to launch to Mainnet with tight OI caps to watch the performance with real trades. This would put the earliest possible full-scale launch sometime in November or December.

With that in mind, Afif suggested it may be time to start thinking about a plan to incentivize stakers to make the move to V3. Part of this is likely to be a winding down of inflation rewards on V2, which will make V3 more attractive. Migrating the Treasury alone should be enough to sufficiently bootstrap liquidity at launch.

For a governance update, the team is finalizing the updated election system code for audit, and the SIP for the Cross-chain Election Module (V3GM) is being drafted. There were also two SCCPs presented last week, so let’s briefly review them.

SCCP-305: BetSwirl — Create Pool and register Market

  • This SCCP was presented by Romauld, who met Cav at ETHCC
  • He presented on behalf of BetSwirl, which is an online gambling platform
  • BetSwirl is exploring ways to add house liquidity to their platform, and has generated $32 million in wagered volume and $990k in annualized fees
  • This SCCP proposes creating a pool that LPs could delegate to in order to earn yield
  • They plan to launch on Ethereum with this liquidity infusion
  • In order to be competitive with other online gambling platforms, the team would like to be able to offer bigger payouts to winners
  • SNX LPs would be able to elect to delegate to this pool, and there would be no direct exposure to the Synthetix protocol

SCCP-306: Create the Kwenta Pool

  • This SCCP was presented by Jeremy and would create a Kwenta Pool on Synthetix V3
  • Kwenta would like to put all of the SNX they receive from the volume program back into this pool
  • Long-term, they want to direct Kwenta perps to that pool instead of the SC pool
  • There was a question as to whether SNX allocated to non-SC pools would have voting power, but this was not answered on the call

Both of these SCCPs are still in draft.

Grants Council

Present at the September 14, 2023 Grants Council meeting:
Grants Team: CT, MoneyManDoug, synthquest

In Grants Council updates, the team is investigating possibly adding a default Github account to the SIP submission UI for people who don’t have a Github account. Also, the V3 stats page version 0.1 will be started with the devs soon, as they are just finishing their current project first. And the NFT lore writer payment is being processed, while the GC works with Sunny to help them deploy the NFT website.

The Governance Guide Doc that they’re working on is going well, they recently decided to add a “mandate” for each Council — resources have been allocated to help write TC and SC mandates and get them to sign off on them. The team is also planning on migrating the Perps Landing page data and info on the Watcher page — they actually have two separate teams working on the upgrades to the Watcher page at the moment. Lastly, the V3 Overtime Markets specs are about to be finalized, then the GC will get to work on the development!


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SIP/SCCP status tracker:

SIP-323: Adopt “s” prefix for Synthetix V3 asset tickers, Status: approved

SIP-326: Additional pool configuration, Status: implemented

SIP-331: Adding view function to retrieve market address by market ID, Status: approved

SIP-332: Mint and Burn with Account Balance, Status: implemented

SIP-333: Pool Collateral Caps, Status: implemented

SIP-334: Add Optional Bytes Field for Oracle Manager Requests, Status: implemented

SIP-335: Allow revoking ERC20 approvals, Status: implemented

SIP-337: Perps V3, Status: draft

SIP-306: V3 Migration, Status: implemented

SCCP-305: BetSwirl — Create Pool and register Market, Status: draft

SCCP-306: Create the Kwenta Pool, Status: draft

SNXweave Weekly Recap 106

https://blog.synthetix.io/snxweave-weekly-recap-106/

September 13, 2023

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.

👉TLDR

  • V3 core system: several minor, technical SIPs are in the release process
  • Perps V3: the SIP for Perps V3 is up (but changes will still be made leading up to the presentation) & the preliminary audit report has been received (no critical issues here), CCs are still working towards the Perps V3 testnet competition — more details coming soon
  • An L1 Perps market is also in progress
  • Migration plan for V3 was discussed by the SC & CCs
  • SIP-338: Deploy the SNX token on Base via Base Bridge presentation recap
  • Review of Synthetix Treasury Proposal (STP) call with Kain, Carrot Anderson, Cavalier, ML_sudo and Spartan Glory
  • STP-2: Data Analytics Working Group presentation/discussion recap
  • STP-3: Synthetix Ecosystem Fund presentation/discussion recap
  • STP-4: V3 SNX Staking Pool presentation/discussion recap
  • STP-5: Development/Sales Working Group presentation/discussion recap
  • Grants Council update: sorting out launch of NFT website & URL, burner wallet to set up Opensea NFT auctions, CT to get council mandates, watcher page update, Sunny reviewed overtime Markets V3 proposal & will chat with Cyberduck, Perps V3 trading competition soooooon

Spartan Council and SIP updates

Present at the September 6, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Adam, Burt Rock, Cyberduck, Genefaesius.eth (Gene), Jackson, Kain, Millie, and ML_sudo
Core Contributors: Afif, Bex, Cavalier, KALEB, Matt, Mike, noah, Noisekit, Rafa, sunny, troy

As a core system V3 update, a number of SIPs are in the release process – mostly minor, technical SIPs that were previously approved. With the core system feature-complete and at parity with V2, any updates this epoch will be driven by the Spartan Council. Noah clarified that as community representatives, the SC may propose upgrades in reaction to community needs.

The CCs are also still working towards the Perps V3 testnet competition, the details of which should be released in a blog post any day now. Mike already shared that the competition, hosted by the Grants Council, will have a $15,000 prize pool and 15 Spartan NFTs for selected winners. The competition will take place on Base Goerli, and will help battle-test the Perps V3 mechanism and identify any remaining bugs before it gets deployed to mainnet.

And speaking of Perps V3, the SIP is up on the repository, but changes will still be made leading up to the presentation (with two changes specifically being made to make large liquidations more efficient). The preliminary audit report for Perps V3 came back with minor feedback to address a few things, but nothing major that would affect the testnet competition. The CCs noted, however, that a critical item that needs to happen before the testnet competition is that integrators need to integrate with the ERC-7412 (On-Demand Off-chain Data retrieval).

An L1 Perps market is also in progress – this would mostly serve integrators and very large traders due to the gas requirements. This would be a very bare bones market compared to L2 Perps and is optimized for potential integrators such as stablecoin issuers. Gene voiced concern that this use case may hoard much of the open interest, but Afif explained that perps markets are designed such that any extreme positioning creates arbitrage opportunities that are likely to be capitalized on. He added that a nominal rate on open interest could be considered in the future to make it more attractive for liquidity providers.

The SC also discussed the migration plan for V3, which Adam brought up. In the current plan, V3 will continue to back V2, allowing users to migrate on their own time. While there won’t be a strict cutover to V3, rewards will shift over time to hopefully create a natural incentive for users to migrate.

Kain also brought up debt migration, which has been deployed for a couple of months now. However, no UI exists for users to make use of these contracts, and the contracts still don’t support migration of safes. Noah said everybody should be thinking about where they want the liquidity to be in V3, and that this can be reactive to the needs of the community.

Next, SIP-338 to Deploy the SNX token on Base via Base Bridge was presented last week by Matt. He explained that this is a standard bridge for base and any custom work would require code changes in V2X. ETH may be used as collateral later, but allowable collateral is outside the scope of this SIP. This proposal is simply the creation of an ERC-20 contract on base and would allow users to bring their SNX to base. Additionally, the Synthetix Treasury Council’s Aerodrome can bolster SNX liquidity on Base at no additional cost to the protocol.

Adam brought up the fact that the token should be added to Base with role-based minting, which would allow for other minters in the future if required. Matt agreed to add this language to the SIP, and the Spartan Council signaled support for this proposal.

Treasury Council updates

Present at the September 6, 2023 Treasury Council STP discussion call:
Treasury Council/STP authors: Carrot Anderson, Cavalier, Kain (previous epoch TC & STP author), ML_sudo (STP author), SpartanGlory

Next up, in exciting news, SNXweave hosted the Treasury Council last week in the Synthetix Discord governance-stage to discuss some of their recent Synthetix Treasury Proposals (STPs) with the community! These STPs are a relatively new concept – the guidelines were created in May by Kain, Carrot Anderson, Elliptic Curve, and Spartan Glory.

As detailed in these guidelines, an STP is a “document that outlines a proposed ongoing management process or one time use of Synthetix treasury funds.” While a formal proposal template is not required by governance for the Treasury Council, the introduction of STPs aims to provide clarity to the community and facilitate community input. In addition, STPs will serve as documentation for the treasury processes and assist with handover at the end of each epoch.

That being said, the TC joined us to discuss STPs 2, 3, 4, and 5 (all of their recent ones!). So, let’s talk a little about what we discussed with them last week, and what each of these STPs entails.

STP-2: Data Analytics Working Group

  • This STP proposes spending up to $250k to fund a data analytics working group
  • The motivation behind this proposal is the need for a dedicated allocation of resources to ensure accurate and maintained data across Synthetix
  • There hasn’t been a set way of managing this in the past, so the task has typically fallen on one or more CCs as a secondary work objective
  • The goal here is to create a single Synthetix data layer that integrators and other front-end builders can point to for all things Synthetix data-related
  • Kain pointed out that analytics has always been sort of an afterthought for whoever is doing it, and that there have been attempts to create this function under the CC umbrella, but it eventually falls apart as other more pressing priorities arise
  • An application process will be defined by the TC, enabling interested teams and individuals to apply for the working group. The working group will need close access to the CCs and/or come from within the Synthetix community to have the required contextual understanding of these challenges and previous attempts at solving them
  • Gene asked what a dedicated working group would entail, and if the TC will write deliverables. Kain responded saying it would be a group of people working solely towards this one objective, and that group cannot be pulled into any other core protocol functions. There will also be clear KPIs and expectations monitored by the TC and community, and it will be funded by the TC
  • Reflecting on his epoch with the TC, Kain also envisions these working groups helping to provide continuity across epochs, as they will have worked with previous councils and would allow new councils to get up to speed faster

STP-3: Synthetix Ecosystem Fund

  • The purpose of this fund will be to make investments on behalf of the protocol to increase the Synthetix Treasury for the community
  • The proposal will eventually allocate up to 10% of the SNX treasury towards this objective
  • A big motivation of this STP is to diversify treasury holdings so SNX doesn’t always have to be sold first to meet protocol operating needs
  • Spartan Glory highlighted that Synthetix has been incredibly helpful to many DeFi protocols, but has not really seen commensurate economic benefit
  • Allocating SNX in exchange for other governance tokens also serves to better align incentives with partner protocols
  • There are no deals on the table currently but there was TC support for proceeding conservatively

STP-4: V3 SNX Staking Pool

  • This STP proposes allocating funding to create and launch a trial SNX staking pool on Synthetix V3 to introduce users to the new system and identify any potential issues in a controlled manner before the full-scale launch
  • Motivation behind this proposal is to offer yield on dormant SNX without the market exposure that comes with staking (this STP also proposes a terminology change from SNX staking to SNX Liquidity Provisioning)
  • Since there will be no market exposure, the yield will be funded by the TC
  • The yield would also be considerably less than staking so it’s not expected to reduce the collateral base for other Synthetix offerings
  • This is also a low-risk test of the idea to position SNX as a token that captures fees/yield from several sources (rather than just staking)
  • SNX is already its own separate pool in V3, per SIP-324 with its own rewards distributor (which is funded by the TC)
  • There will be no lockup on this pool

STP-5: Development/Sales Working Group

  • Lastly for the discussed STPs, this proposes establishing a white-glove service to onboard high-level traders and funds onto the Synthetix platform, offering incentives, technical support, and ongoing correspondence
  • A number of large traders/funds have expressed interest in the platform but don’t know how to proceed, so the motivation would be to help onboard these big clients
  • For a 6-month trial period, there would be a $500,000 initial budget that would be distributed in two phases: one at the beginning and one after 3 months depending on performance
  • The budget, hopefully, reflects what is needed to sufficiently motivate a team with experience in this sort of work to do the job effectively
  • $150-$200k will be dedicated to securing a lead for this group
  • Much of the early stage of this initiative will be interviews with some of these bigger clients to figure out what can be offered at Synthetix to better suit their needs
  • Burt asked what tools would specifically be offered to these clients, and Rafa explained that what they’ve seen in some of the initial requests is traders being interested in APIs that they might find on centralized exchanges. The CCs are currently creating specs for an SDK for these traders
  • Similar to the Data Analytics Working Group motivation, Kain highlighted that there has never been a dedicated function for this kind of task as well, so it has also usually fallen on the CCs to bridge the gaps. As the protocol matures, he sees an increased need for specialization and sees a lot of potential benefit in funding a Business Development (BD) team
  • Gene questioned whether onboarding traders was a job for Synthetix since it would practically amount to a Kwenta/Polynomial tutorial. Kain said the counterparty is still the Synthetix debt pool, and larger traders typically want to speak with someone in Synthetix
  • Millie asked about KPIs, and Spartan Glory said the bottom line is obviously more integrations and more volume but BD can take time. At 6-months and beyond, the TC would expect to see some significant conversions and volume as a result of these efforts

Grants Council

Present at the September 7, 2023 Grants Council meeting:
Grants Team: ALEXANDER, CT, sunny, synthquest

Lastly, in Grants Council updates, Sunny is working on sorting out the launch of the NFT website and URL, and a burner wallet has been set up for the Opensea NFT auctions. For the watcher page, three tasks have shipped, PRs are being merged, and a new dev was added. CT is also working on getting council mandates, while Sunny reviews Overtime Markets V3 proposal, which he will chat with Cyberduck about. And, of course, the Perps V3 trading competition is being funded by the Grants Council and is coming soon!


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SIP/SCCP/STP status tracker:

SIP-337: Perps V3, Status: draft

SIP-338 to Deploy the SNX token on Base via Base Bridge, Status: draft

STP-2: Data Analytics Working Group, Status: draft

STP-3: Synthetix Ecosystem Fund, Status: draft

STP-4: V3 SNX Staking Pool, Status: draft

STP-5: Development/Sales Working Group, Status: draft

SNXweave Weekly Recap 105

https://blog.synthetix.io/snxweave-weekly-recap-105/

September 6, 2023

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.

First up, Perps has been pulling in some incredible volume for the protocol, so here’s a quick data report for the 7-day period from August 30th to September 5th (according to watcher.synthetix.io):

📊Synthetix Perps Data Report

  • 7-Day Total Volume: $951.3 million
  • Average Daily Volume: $135.9 million
  • Total Volume as of September 5th: $26.84 billion
  • Total Fees as of September 5th: $20.27 million

Next, be sure to join us tonight at 10pm UTC in the governance-stage when we host Synthetix Treasury Proposal (STP) authors Kain, ml_sudo, Carrot Anderson, and SpartanGlory to discuss the outstanding STPs that they have written!

Topics of discussion will include:

  • STP-2: creation of a Data Analytics Working Group to create a reliable reference for all key Synthetix data
  • STP-3: creation of the Synthetix Ecosystem Fund to fund ecosystem projects and diversify the treasury into liquid tokens
  • STP-4: create a Staking Pool on Synthetix V3 for SNX holders to deposit SNX and earn yield without having to hedge
  • STP-5: creation of a Development/Sales Working Group to onboard high-value traders and funds through dedicated service

Grants Council

Present at the August 31, 2023 Grants Council meeting:
Grants Team: ALEXANDER, CT, MoneyManDoug, sunny, synthquest

In Grants Council updates, the team welcomed their new member, MoneyManDoug, last week. They reviewed the many projects and initiatives that they’re working on, and had a good introductory meeting to get him up to speed.

The GC has also started rolling out their NFT Synthverse LORE! This otherworldly tale features detailed stories of Earth Under the Olympians, The Elysion Initiative, The Synthverse, The Troll Invasion, The Fall of Mount Havven, and the Current Crisis that ties it all together. Be sure to read the full Lore here to transcend reality and get excited for the very imminent NFT drop!


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SNXweave Weekly Recap 104

https://blog.synthetix.io/snxweave-weekly-recap-104/

August 30, 2023

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.

🚨Election Results🚨

  • Your Spartan Council members for the epoch will be Adam, Burt Rock, Cyberduck, Genefaesius.eth, Jackson, Kain, Millie, and ML_sudo
  • Serving the community on the Treasury Council this epoch will be Bagg, Carrot Anderson, Cavalier, SpartanGlory
  • Our Grants Council members will be ALEXANDER, CT, MoneyManDoug, Sunny, Synthquest
  • And lastly, your Ambassadors for the coming epoch will be GUNBOATs, Kevin, Mastermojo, Matt, Westie

Thank you to all who ran, voted, and participated in governance this epoch, and congratulations to our newly elected Council members!

Spartan Council and SIP updates

Present at the August 23, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Burt, Cavalier, dsacks, Jackson, ml_sudo
Core Contributors: Afif, KALEB, Matt, Mike, Noisekit, troy

Now onto our regular updates…all of the final Mainnet alpha upgrades for V3 are currently with auditors for review, ERC-7412 has been posted to the Ethereum Magicians forum for community discussions, and the Perps V3 SIP is finally up on the SIP repo in draft! Audit feedback is expected by the end of the week for this SIP, and then it will be voted on by the next Spartan Council. Nothing was added to the SIP (over perps V2) that would make it contentious, so it should go through governance swiftly. And speaking of governance, the SIP for the proposed election changes will also be presented for the new Council in the upcoming epoch.

The SC and CCs also had a discussion last week regarding integrator fees. While discussing Perps V3, Burt wanted to make sure there was time to introduce possible updates to the new proposed fee structure in the context of Perps. There was general consensus in another call that the fee should be 30% across the board, and shouldn’t be a governance decision based on integrator proposals.

Kaleb’s main concern with a variable fee is that it may give integrators the ability to pass some of that fee share back to users (which is not the intended purpose of the fee and may stifle competition). Sunny countered by adding that the threat of reducing fee share would likely keep integrators from doing this, with the mechanism that allows the percentage to be changed via SCCP.

Grants Council

Present at the August 24, 2023 Grants Council meeting:
Grants Team: ALEXANDER, CT, synthquest

In Grants Council updates, the team has been pushing their Spartan Synthverse NFTs to winners of contests — most recently at Polynomial. They’ve also received the final draft of the lore for the NFTs, which is being put into the website. They’re hoping to go to auction with the first publicly available NFTs soon.

The governance doc that they are working on is about 90% completed as of this week, and the Council has also been working on a program for V3 testnet incentives that we should be hearing more about soon.

Ambassador Council

Present at the August 22, 2023 Ambassador Council meeting:
Ambassadors: GUNBOATs, Kevin, Mastermojo, Matt, Westie

Lastly, in Ambassador updates, the team reviewed their Spartan Space with the Grants Council, discussed some Optimism Governance, revised some material for Bankless Academy, and discussed future Spartan Spaces. They are hoping to host Infinex and Amphora in the coming weeks, and they actually joined Tasty Crypto as a co-host in their space last week.


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SIP/SCCP status tracker:

SIP-337: Perps V3, Status: draft

SNXweave Weekly Recap 103

https://blog.synthetix.io/snxweave-weekly-recap-103/

August 23, 2023

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.

Spartan Council and SIP updates

Present at the August 16, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Adam, Burt, Cavalier, cyberduck, Danijel, dsacks, Jackson, ml_sudo
Core Contributors: KALEB, Matt, meb, noah, Noisekit, sunny

FIRST, in case you missed it, SNXweave hosted the Spartan Council (SC) Election Panel yesterday in the governance stage. We got to hear from some of this epoch’s SC candidates, who answered community questions and spoke to their candidacy. Be sure to catch the recording on our YouTube channel or Anchor podcast! And don’t forget to VOTE –the voting period will end on August 30th, and the nomination period will remain open until then.

In other news, the Core Contributors (CCs) are all caught up on the most recent V3 core upgrade SIPs (in preparation for Perps V3), and the auditors are reviewing them now. The core system is in pretty good shape and CCs are just trying to minimize “feature bloat” to really hit the ground running with the Perps V3 release.

Noah and db have also finished putting together a draft for ERC-7412, a proposal that they would like to see as the standard for cross-chain oracle reads. This proposal has received a warm reaction from oracle partners, so the next step is to create proof-of-concept for this pool synthesis feature that compiles with the EIP.

In governance updates, the CCs are working on the SIP for new election system upgrades, which will mostly be to add cross-chain functionality. A “mothership” chain will be assigned (Optimism) and votes can be made on any chain that Synthetix V3 is deployed on, but the final tally will be taken on the mothership chain. A snapshot module will also be added to differentiate v2x and V3 votes, as well as associated voting power.

Another addition in this proposal is a guardian module, which gives the Spartan Council a deadman switch. This is a safety mechanism (managed by the pDAO) to return protocol control to the current state in the event that the new governance mechanism is attacked. The SIP is still in draft and all of the exact parameters of these features are still to be determined and are subject to governance approval.

An improved UI is also in the works to allow Spartan Council members to fully take over pDAO functions without extensive technical background. This upgrade is scheduled to be implemented by the next election cycle and should be in audit by the beginning of September after the Perps V3 review is done.

And speaking of Perps V3, the most recent update is that it’s still in audit, but the final report is expected on the 30th of August. The testnet trading competition is currently being ironed out, but it is still being planned for the first week of September.

Next up, there were also a few SIP presentations last week, so let’s briefly review them.

SIP-2029: Add SEI to Perps V2

  • Proposed by GUNBOATs, this SIP will add the Sei Network Token as a market under Perps V2
  • SEI is currently trading on Binance and will need an oracle feed from Chainlink and Pyth, and configurable values will be set in a subsequent SCCP for each market

SIP-2032: List all current dYdX assets on Perps V2

  • Burt presented this SIP, which proposes adding THOR, SUSHI, ZEC, XTZ, UMA, ENJ, ICP, XLM, 1INCH, EOS, CELO, ALGO, and ZRX to Perps V2 since they have sufficient liquidity
  • The SIP also proposes auto-listing all future tokens listed on dYdX (except SNX)
  • Since Perps relies on arbitragers to balance markets, having similar products available on other exchanges is key to a healthy market function
  • The proposed change aims to expedite the listing of markets that present potential demand and arbitrage opportunities, while giving CCs the discretion to prioritize certain assets without requiring immediate oracle availability
  • There is no additional risk exposure since all parameters are assigned via SCCP
  • This could be opened up to other exchanges in the future, but dYdX had the most listings that Synthetix does not currently offer so it made sense to start there
  • It was also suggested to have a configurable value that could be changed later to add listings from other exchanges without needing another presentation. There was some back-and-forth debate on this, with Millie arguing against eliminating the presentations and the majority of the SC in favor

SIP-2033: List assets with Chainlink and Pyth feed deployed on Perps V2

  • Lastly, this SIP will list BAL, FXS, KNC, RNDR, ONE, PERP and ZIL on Perps V2 as they all already have Chainlink price feeds and Pyth price feeds on OP Mainnet
  • There were no objections from the Spartan Council

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SIP/SCCP status tracker:

SIP-2029: Add SEI to Perps V2, Status: draft

SIP-2032: List all current dYdX assets on Perps V2, Status: draft

SIP-2033: List assets with Chainlink and Pyth feed deployed on Perps V2, Status: draft

SNXweave Weekly Recap 102

https://blog.synthetix.io/snxweave-weekly-recap-102/

August 16, 2023

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.

Spartan Council and SIP updates

Present at the August 9, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Adam, cyberduck, Danijel, Jackson, ml_sudo
Core Contributors: Afif, jz, KALEB, meb, noah, Noisekit, sunny

For V3 core, a number of small SIPs were approved recently and have since been moved to the implementation phase. These SIPs are currently under audit to get them to Mainnet as soon as possible, and the core system is being treated as feature-complete with all of the upgrades in preparation for Perps V3. Noah and db are also concurrently working on ERC-7412 since it’s the best option for cross-chain pool synthesis. And the CCs are putting together the SIP to enable the cross-chain election system, which will likely go to audit after Perps V3.

And speaking of Perps V3, it’s currently in audit while the CCs work with Kwenta and Polynomial on the integration. The current timeline is looking like 2–3 weeks for a testnet competition (possibly early September). The testnet competition is the next milestone, which will help resolve any bugs before the official launch.

During the Perps V3 discussion, the Council also discussed the new proposed fee structure. This new program will require front ends to propose the percentage of fees that they would like to collect, and that fee will go to a wallet of their choice. This system retains all of the same flexibility as previously proposed systems — frontends can add fees or they can request a higher percentage and rebate customers to be more competitive. The benefit of doing it this way is the percentages can always be turned to zero if governance decides against the fee rebate in the future — this is much easier than creating a new, compatible fee system later on.

Next up, there were a few SIP presentations last week so let’s briefly review them:

SIP-331: Adding view function to retrieve market address by market ID

  • Presented by Noah, this proposal suggests adding a view function to the Market Manager Module which will allow devs to retrieve the address of a deployed market by using the market’s ID
  • The function is designed to return the address of the deployed market for a specific market ID

SIP-336: Deploy Synthetix V3 Core on Base

  • This SIP proposes deploying the Synthetix V3 core system to Base with contracts initially paused
  • They will likely not be unpaused until Perps V3 is ready but there may be reasons to do so
  • Mike explained that this would be a big show of support for the Optimism ecosystem and may help attract builders to the chain
  • The process is relatively straightforward, according to Noah, since Base is essentially identical to Optimism code-wise
  • This SIP was approved with 8 votes in favor

SIP-2030: Add USDT to Perps V2

  • Burt presented this SIP, which introduces USDT futures to Perps V2, allowing users to trade the price of USDT against USD or hedge their USDT exposure against USD
  • The feed is already live and the expectation is that some users might make use of this product as a hedge if there is expected volatility
  • OI caps will be initially set to $5mil

SIP-2031: Add stETH/ETH on Synthetix Perps

  • This is a proposal to offer stETH/ETH on Perps V2, which will track the price ratio of their respective cryptocurrency denominated in USD
  • Burt explained that the motivation behind this SIP was to allow users to trade the deviation between stETH and ETH rather than just stETH (which is generally pegged to ETH)
  • This SIP was inspired by the success of the ETH/BTC ratio offering, and has been approved with 8 votes in favor

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SIP/SCCP status tracker:

SIP-331: Adding view function to retrieve market address by market ID, Status: draft

SIP-336: Deploy Synthetix V3 Core on Base, Status: approved

SIP-2030: Add USDT to Perps V2, Status: implemented

SIP-2031: Add stETH/ETH on Synthetix Perps, Status: approved

SNXweave Weekly Recap 101

https://blog.synthetix.io/snxweave-weekly-recap-101/

August 9, 2023

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.

Spartan Council and SIP updates

Present at the August 2, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Adam, Burt Rock, cyberduck, Danijel, dsacks, Jackson
Core Contributors: Afif, db, KALEB, Mike, noah

The core system for V3 is feature-complete! Small upgrades will be rolled out over time as necessary, but the focus is expected to shift more towards markets and governance as core development slows down a bit. Noah even said the CCs drafted an Ethereum Improvement Proposal (EIP) to create an Ethereum-wide standard for cross-chain reads.

Next up, Perps V3 is currently on Goerli (testnet) and Kwenta and Polynomial have started their integrations. Two devs are also preparing to start work on the Thales OT integration, and a better system for incentivizing keepers in V3 is currently in development. The Mainnet timeline is still unclear, but the next step is to get integrators ready for the testnet competition.

And speaking of perps, the CRV has generated a lot of activity for Perps V2. It appears to be generating volume 10 to 20 times the OI caps — this popularity is likely partially due to it being difficult to find other on-chain options for trading CRV with leverage. WLD was also added to perps, with the recent approval of SCCP-2032.

In governance updates, the safe module is through audit and the election frontend rewrite is in progress. While the rewrite is going smoothly, it will not be ready for the upcoming election, so the plan is to have a full election system refresh ready for the December election.

The Spartan Council and CCs also brought up the deployment to Base, Coinbase’s OP stack L2 that is launching today. Synthetix would be among the first protocols to launch on Base — the plan is to launch with contracts paused to give integrators a chance to start looking at the code. Once Perps V3 is ready, the full product will be available on Base.

Danijel asked how perps would function without liquidity on Base, and Kaleb added that it would be difficult to get enough SNX over there to sufficiently bootstrap liquidity. It is still possible that other collateral types could be enabled, but this would have to go through governance and community support is mixed. Jackson also highlighted that it might be wise to start considering solutions to avoid severe liquidity fragmentation across L2 deployments. This is already being explored using CCIP, but this functionality probably won’t be ready until sometime in 2024. Noah will be putting together more information on this subject to share soon.

Next up, there were several SIP presentations last week, so let’s briefly review each of them:

SIP-325: Add Multicall Proxy Function

  • Presented by Noah, this SIP proposes adding a new multicall function that can be used with core system functions, such that the value of msg.sender can be preserved
  • The core philosophy of V3 is that each function should only be doing one thing (as often as possible)
  • Complex user actions are then accomplished via multicall, which allows for a wider range of protocol functionality
  • There is already a multicall function within the core system, but it doesn’t have the ability to call contracts outside of the core system (Perps V3 for example) — this SIP will address that

SIP-332: Mint and Burn with Account Balance

  • Rather than minting/burning stablecoins from the wallet of the address which calls the function, this SIP will make it so that the stablecoin balance changes occur on the core system address and are associated with the relevant account
  • Db explained that the additional requirement of allowing cross-chain pools is the ability to hold withdrawals of snxUSD in the user’s account for a small period of time — this is to allow for other chains to read that this action has taken place (which created a possible exploit opportunity)
  • This change is therefore being done as a general modification rather than one specific to cross-chain pools to keep the overall complexity of V3 as simple as possible

SIP-333: Pool Collateral Caps

  • This SIP proposes an enhancement to Synthetix V3 that allows pool owners to specify caps for the amount of each type of token that they will accept as collateral
  • While considering the implementation for SIP-326 (additional pool configuration), db said it became apparent that pool owners may want more fine-grained control regarding collateral delegation
  • This SIP is a minor technical change required in order to implement 326

SIP-334: Add Optional Bytes Field for Oracle Manager Requests

  • This SIP proposes enhancing the Oracle Manager in the Synthetix protocol to support custom bytes data in requests, which will enable Oracle Manager nodes to alter outcomes based on the provided information
  • This will be an excellent tool for the Synthetix ecosystem as it will allow market creators to more easily access oracle resources without an extensive technical background
  • This proposal was motivated by the need to quantify account margin-based price impact resulting from position size (i.e. exchange rate for 1 ETH would be different from the exchange rate on 100 ETH)

SIP-335: Allow revoking ERC20 approvals

  • A minor bug was discovered that prompted the proposal of SIP-335 for a minor change to Synthetix V3’s implementation of ERC20 that allows 0 value approvals, which is needed for token revokes
  • By not reverting and allowing 0 value approvals, it means the ERC20 implementation allows for downstream services and users to fall in line with the recommendation defined in EIP-20 to prevent certain attack vectors

All of these SIPs are pending Spartan Council review.


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SIP/SCCP status tracker:

SIP-2028: Add WLD to Perps V2, Status: implemented

SCCP-2032: Perp Parameters — WLD, Status: implemented

SIP-325: Add Multicall Proxy Function, Status: SC review pending

SIP-332: Mint and Burn with Account Balance, Status: SC review pending

SIP-333: Pool Collateral Caps, Status: SC review pending

SIP-334: Add Optional Bytes Field for Oracle Manager Requests, Status: SC review pending

SIP-335: Allow revoking ERC20 approvals, Status: SC review pending

SNXweave Weekly Recap 100

https://blog.synthetix.io/snxweave-weekly-recap-100/

August 2, 2023

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.

Spartan Council and SIP updates

Present at the July 26, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Burt Rock, cyberduck, Danijel, dsacks, Jackson, ml_sudo
Core Contributors: Afif, jz, KALEB, meb, noah, troy

Synthetix CCs have returned from a successful and very productive EthCC, and are now continuing work on a number of core system SIPs, which are in various stages of completion. Some additional small core changes were identified during ETH CC (SIPs for these will be presented today).

Last week the protocol also announced the addition of seven new perpetual futures markets that are now available for leverage trading on Synthetix Perps. The full list of new perpetual markets includes ETH/BTC, XMR, ETC, COMP, MAV, YFI, MKR, and RPL. These markets were approved in six different SIPs, and had initial configurable values set by SCCP-2029.

As for Perps V3, it is essentially feature-complete and we should be expecting a SIP to be ready in the next couple of weeks. Partners are working on front ends right now, so the next step is to plan and get ready for the testnet competition.

Lastly for a work in progress update, the V3 Elections System is also nearly feature-complete and will now have cross-chain support that implements CCIP. A SIP is in the works for this election system, as well as one to roll out the Safe Module for governance.

The Spartan Council also discussed Infinex, Kain’s exchange, which was brought up by Danijel. There was some Discord discussion regarding what role the SC would play in governing Infinex, as well as some confusion on where this responsibility should lie. A couple of Council members explained that their understanding was that SNX holders would be directing voting on governance items.

The Council then discussed the Overtime V3 integration, which Duck said he discussed with Sunny at EthCC. They planned to have a meeting to put together a functional spec for the project. After that, the work will be outsourced to a Grants Council developer.

Danijel asked if V3 is ready to be integrated with, and Noah answered saying spot markets and Perps markets have already been built on that interface, and the market manager likely won’t change. Since Thales uses sUSD for Overtime markets, an integration at this point would not be a functional product until liquidity migrates to V3. As soon as Perps V3 is underway, V3 will need as much liquidity as possible (and the incentives will need to reflect that), but the details and timeline are not fully clear yet.

Lastly, SIP-2028 was presented last week by GUNBOATs to add Worldcoin to Perps V2. This SIP was approved, pending feedback on oracle feasibility (which should be available shortly).


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SIP/SCCP status tracker:

SIP-2009: Adding ETH/BTC ratio to Synthetix Perps V2, Status: implemented

SIP-2023: Add XMR to Perps V2, Status: implemented

SIP-2024: Add ETC and COMP to Perps V2, Status: implemented

SIP-2025: Add MAV to Perps V2, Status: implemented

SIP-2026: Add YFI and MKR to Perps V2, Status: implemented

SIP-2027: Add RPL to Perps V2, Status: implemented

SCCP-2029: Enable Perps V2 Markets / Update Parameters, Status: implemented

SIP-2028: Add WLD to Perps V2, Status: approved

SNXweave Weekly Recap 99

https://blog.synthetix.io/snxweave-weekly-recap-99/

July 26, 2023

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.

With most of the CCs in Paris this past week, we have a quick update for you guys today about what the Grants team and Ambassadors have been up to.

Grants Council

Present at the July 20, 2023 Grants Council meeting:
Grants Team: ALEXANDER, CT, JVK, sunny, synthquest

First and foremost, the Grants Council launched their NFT project last week!!! As CT said in his announcement, this has been a long time coming for them.

The Synthverse is a full lore story, where you will be able to immerse yourself and get to know all of the different Tribes and the world that they live in. The GC plans to give the base lore story over to the community and see how they can grow it into the future. As a reminder, the different Tribes are:

  • Human: Spartans
  • Human: OG Spartans
  • Human: Legendary Spartans
  • Human: Demigod Spartans
  • Dwarfs
  • Elementals
  • Mechanoids
  • Philosophers
  • Alien Elves
  • Undead
  • Trolls

Over the next couple of weeks, the Council will be sharing more information with the community as they progress through the different phases, which will be as follows:

  • Phase 1: Pre-mint 192 NFTs for the Grants Council. This is done ✅, and you can view the initial Phase 1 NFTs minted here
  • Phase 2: NFT Auction to help raise awareness of the project, Synthetix and Optimism L2.
  • Phase 3: Synthverse LORE reveal
  • Phase 4: Community Whitelist Mint of 2,000 NFTs
  • Phase 5: Open Mint of 3,000 NFTs (only if demand is high)
  • Phase 6: Additional Mint phases can be opened up — until we reach the max cap of 10k NFTs — if the demand is there.

And don’t forget to look for the rare meme items! These will be:

  • “Head of DeFi”
  • “Cat-in-a-hat-Sam hat”
  • “Beer mug”
  • “Duck”
  • “Sunglasses”
  • “Earphones”
  • “Panda Cape”

The Council is very excited to have finally launched this project, and they are currently hoping to push NFT rewards already earned to the community sooooon.

The Grants team has also been discussing a big bounty for a recent community project for preventative maintenance. And, lastly for them, their Community Governance Manual is looking good! Feedback from the second editor has been provided, and they are hoping to be ready soon for referral to the CCs for feedback before publishing.

Ambassador Council

Present at the July 18, 2023 Grants Council meeting:
Ambassadors: GUNBOATs, Mastermojo, Westie

In Ambassador Council updates, the team discussed Optimism and Arbitrum governance last week, and created a delegate profile to govern Lyra. You can check out their delegate statement here! They also discussed the Chainlink Spartan Space that Westie and Mastermojo joined last week. The team had over 220 audience members, which is one the highest number of listeners in any Spartan Space thus far.


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SNXweave Weekly Recap 98

https://blog.synthetix.io/snxweave-weekly-recap-98/

July 19, 2023

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.

Spartan Council and SIP updates

Present at the July 12, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Adam, Burt Rock, Cavalier, Danijel, ml_sudo
Core Contributors: Afif, KALEB, noah, Peiman, troy

FIRST, in case you missed it, we just published the Quarterly Report for Q2 at Synthetix so be sure to check that out!

Next, in exciting news, Synthetix has integrated Chainlink’s Cross-Chain Interoperability Protocol (CCIP) into V3. This milestone integration marks one of the first-in-production uses of Chainlink’s CCIP and will enable highly efficient, secure, and reliable cross-chain transfers of sUSD through the Synthetix Teleporter (only sUSD minted on the Synthetix V3 architecture can be sent via Teleporter).

Initially, this integration will enable V3 sUSD to move between Ethereum and Optimism, but it has been configured to allow transfers to any EVM-compatible chain if approved by the Spartan Council. Synthetix is also exploring the usage of CCIP for additional use cases, including cross-chain synthetic perpetual futures, cross-chain staking pools, and more.

As for a work in progress update, work is continuing on Perps V3. Kwenta and Polynomial are also preparing for the upcoming testnet competition — they are working on setting up front ends, and Synthetix is using an in-house prototype to test the system. Auditors are also building out test cases and have begun reviewing the code.

Lastly for V3, the audit for the governance safe module is complete and progress on the election module has been made, SIP-328 is back from audit, and much of the team is at ETHCC this week in Paris so we should be seeing a nice boost in productivity from the in-person collaboration.

For Perps V2, ETC and COMP feeds should be available this week and the ETH/BTC ratio feed should be available next week. Both have made it through governance and are clear to proceed.

In other discussion, Kaleb brought up an issue with the MAV price feeds. Oracle providers have indicated that the diversity of data sources is below where they prefer it to be, and the feed would not meet the minimum safety criteria. Based on this new information, some council members have changed their votes on this SIP (it was originally 6–2 in favor, but has now been rejected with 6 votes against).

The Spartan Council also discussed alternative collateral, as Cav brought up some Discord conversations about possible use of alternative collateral. He wanted to get a temperature check from the council on where everyone stands on the existing proposal and if there were any updates required. Cyberduck mentioned that he’s putting a proposal together and is looking for ways to accept other collateral while also maximizing yield for SNX.

Cav suggested an ETH loan mechanic (similar to V2 ETH loans) that would build out protocol liquidity without diverting any fee sharing away from SNX LPs. Duck is concerned that since it hasn’t worked in the past, it may not be a viable option now either. Adam suggested setting up another dedicated call for this discussion with the community, and he also flagged the common community concern with adding additional collateral (value moving away from SNX token holders). Duck responded saying if additional collateral allows the protocol to scale, rewards for SNX LPs may be less in terms of protocol share and might even increase in absolute terms.

ML_sudo asked if any modeling has been done to support this, and volunteered to collaborate with Duck on that front. Burt also brought up the fact that many in the community think things have functioned perfectly well without outside collateral. Part of correcting this is a comms issue, and it may be beneficial to explain some of the issues that have come up with that restriction to the community (in addition to a good proposal).

Next up, there were a few SIP presentations last week so let’s briefly review them:

SIP-2026: Add YFI and MKR to Perps V2

  • Presented by GUNBOATs, this SIP proposes the addition of YFI and MKR perps markets
  • There was general support from the Spartan Council on this SIP

SIP-2027: Add RPL to Perps V2

  • Also presented by GUNBOATs, this SIP proposes the addition of an RPL perp market
  • There was some consensus from council members to wait for feedback on the oracle feed before deciding how to proceed here

SIP-2009: Adding ETH/BTC ratio to Synthetix Perps V2

  • Burt presented this SIP, which proposes offering ETH/BTC as a tradeable market, denominated in USD. For example, an ETH/BTC ratio of 0.0700 would correspond to ETH/BTC perp priced at $0.0700
  • This pair is very common on centralized exchanges, which makes the execution of this SIP a bit easier than creating a custom ratio setup
  • An oracle feed is on the way from both Pyth and Chainlink
  • If the feed isn’t frontrun, this will be the first DEX offering of this trading product
  • There was also general support from the Spartan Council for this SIP

Grants Council

Present at the July 13, 2023 Grants Council meeting:
Grants Team: ALEXANDER, CT, JVK, synthquest

In Grants Council updates, the team received a new grant application that they have been reviewing. After discussing the application, which requested a massive grant to cover the entire development on V3, CT asked that the team clearly define their funding policy. This will be drafted by Synthquest and Alexander, to then be reviewed by everyone.

The Council has also been working on ENS resolving and searching, fixing “search for account” vs Kwenta/Polynomial smart account, working on a couple of Dune pages (Protocol PnL and Perps V2 Open Interest), as well as coordinating with the Dev who says the NFT smart contract is ready to go live.


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SIP/SCCP status tracker:

SIP-328: Debt Distribution View Functions, Status: approved

SIP-2025: Add MAV to Perps V2, Status: rejected

SIP-2026: Add YFI and MKR to Perps V2, Status: draft

SIP-2027: Add RPL to Perps V2, Status: draft

SIP-2009: Adding ETH/BTC ratio to Synthetix Perps V2, Status: draft