Pyth Retrospective Airdrop

https://blog.synthetix.io/pyth-retrospective-airdrop/

Introduction

In December 2022, Synthetix Perps integrated with Pyth Network Oracles following the launch of Perps V2. This decision, guided by the Synthetix community through governance proposal SIP-285, enabled using Pyth Oracles starting with the ETH-Perps market. 

One year later, this move has enabled Synthetix Perps to support over 80 markets, achieve over $40 billion in trading volume, and generate tens of millions in trading fees. This integration has made Synthetix Perps fees competitive with those of centralized exchanges and supported the onboarding of thousands of onchain Perps users.

Pyth Retrospective Airdrop to Synthetix

Synthetix is a recipient of the Pyth Retrospective Airdrop. This, along with the initial airdrop to Synthetix Perps users, strengthens the partnership between Pyth and Synthetix.

To promote active governance in Pyth Governance and strengthen the alignment between our communities, Synthetix will distribute this airdrop to community and governance members, encouraging their involvement in Pyth Governance. Additionally, community contributors and V3 developer grants will be included in a future distribution.

Perps V1 vs. Perps V2 Case Study

The primary upgrade from Perps V1 to Perps V2 was the implementation of Pyth’s fast off-chain oracles, leading to greatly reduced trading fees. Perps V1 relied on slower oracles, requiring higher fees to neutralize frontrunning, which limited trading volume to $5 billion. Perps V2, with Pyth’s low latency off-chain oracles, lowered fees to 2bps to 10bps, boosting trading volume past $40 billion.

Pyth Retrospective Airdrop

Future Plans

With the upcoming Andromeda Release, Synthetix will eliminate its dependencies on slow oracles and primarily utilize Pyth’s Oracles to support Synthetix V3 and Perps V3. This upgrade will introduce many new features, including an improved trading mechanism with new pricing and settlement features, cross-margin, MEV-resistant liquidations, and NFT-based account controls.

Try Synthetix Perps

Traders are encouraged to try Synthetix Perps on Kwenta and Polynomial, powered by Pyth Network Oracles. For more information on Pyth’s role in DeFi and its oracle solutions, visit Pyth Network, Pyth Price Feeds, and Pyth Benchmarks.

Simplifying SNX Staking with Debt and Escrow Migration to Optimism

https://blog.synthetix.io/simplifying-snx-staking-with-debt-and-escrow-migration-to-optimism/

Synthetix has implemented SIP-237, an upgrade that will simplify the staking experience by allowing users to migrate their staked SNX and sUSD debt to Optimism without burning existing sUSD debt.

Simplified Migration from Ethereum to Optimism

Before the implementation of SIP 237, migrating staked SNX from Ethereum to Optimism required users to burn their existing debt, a process that hamstrung users who had already deployed sUSD into hedging and farming strategies. However, with the new system introduced by SIP 237, stakers can migrate their debt position and escrowed SNX from Ethereum to Optimism.

The Mechanism: How Does It Work?

The core of this migration lies in the usage of debt shares, introduced in SIP-185. This mechanism ensures that when stakers migrate, their vested SNX and debt shares are transferred from Ethereum Mainnet to Optimism. This transfer includes:

  1. Debt Shares (SDS): All debt shares are moved from L1 to L2.
  2. Unstaked Balance (SNX): Complete SNX balance is migrated.
  3. Escrowed SNX: Revoked on L1 and recreated on L2.

Benefits of the Migration

  • No Need to Burn Debt: Stakers can migrate without the hassle of unwinding and burning their debt.
  • Unified Fees: Post-migration, users receive the same fee distribution regardless of where they stake.
  • Gas Cost Savings: Being on Optimism offers significant savings on gas costs.
  • Automation Possibilities: Due to the low gas fee environment and integrations with Gelato, users can automatically mint based on their user-selected parameters.

How to Migrate

For those looking to migrate, it’s as simple as heading to the links below: vest your escrow, migrate your escrow, and then migrate your debt.

Any Questions?

If you have any questions or comments, join the conversation on Discord.

Scaling Andromeda

https://blog.synthetix.io/scaling-andromeda/

Introduction

The Andromeda Release is a strategic deployment encompassing Core V3 and Perps V3 on Base; this move will position Synthetix as a multi-chain protocol, leveraging the Optimism Superchain’s capabilities. With the deployment of Perps V3 to Base, Synthetix reinforces its position as a leader and innovator in the decentralized Perps space.

The journey to Andromeda is marked by progressive ramp-up periods. Andromeda is currently live, actively onboarding traders, developers, and integrators with low open interest and liquidity provider caps. Over time, LP and OI caps will be increased, and Perps V2 users will be transitioned to Perps V3, coinciding with the ramp-up of OI/LP Caps and support of existing perps markets.

The Spartan Council’s Role in Andromeda’s Ramp-up

The Spartan Council, Synthetix’s governing body, will oversee the Andromeda ramp-up. Their decisions will shape the progression of this deployment on an ongoing basis. The below ramp-up stages are a rough plan based on discussions by the Spartan Council and Core Contributors, subject to change as development and governance continue to take shape on the topic.

Ramp-Up Stages

  1. Initial Caps and Testing: The Synthetix Treasuary Council has initially seeded liquidity to ensure that open interest is supported by liquidity providers.
  2. Build up Trader/Arbitrage Base: Run by market participants seeking to arbitrage. Automated trading bots will work to neutralize skew, akin to Perps V2. Once this is available, LP positions will be delta-neutral. 
  3. Scaling LP and Expanding Trading Pairs: Once LP caps reach a satisfactory level, users will be guided to engage with LP dapps and trading integrators.
  4. Perps v3.1 release – Interest rate (or asymmetric funding) SIP-354. Perps V3 implements locking of LP collateral to ensure that open positions are backed by the underlying collateral. To discourage the total utilization of LP collateral, the introduction of asymmetric funding acts as an incentive for additional LPs to enter the market while also encouraging the closing of positions to liberate LP collateral in a timely manner.
  5. Increased Caps & Additional Market Pairs: Once integrations for trading partner integrators and arbitrage bots are complete, caps will be raised by roughly an order of magnitude higher. This increase will accommodate more liquidity providers and open interest, enabling the introduction of additional markets.
  6. Multi-Collateral Margin Support: Additional perp margin collateral types can be accepted, including spot synths, sETH, sBTC, etc, yield bearing stablecoins & staked ETH tokens.

The Essence of Andromeda

The Andromeda Release will introduce several new key features, and benefits for both traders and liquidity providers. This isolated deployment on Base facilitates unique testing opportunities and direct comparisons with the existing Optimism Perps V2 deployment.

Key Features

  • Multi-Collateral Support: Including USDC, and other approved synths in the future (sETH, sBTC, etc)
  • Improved Liquidation and Settlement Processes: Protecting LPs and traders with MEV-resistant trading and liquidation experience.
  • Isolated Deployment: Allowing for a distinctive testing environment on a new chain.
  • SNX Buyback and Burn: Implementing a fee distribution model to SNX holders. 40% of fees generated will be used to buy back SNX and burn.

For Liquidity Providers and Traders

  • Liquidity Providers: The introduction of USDC as collateral offers new avenues for liquidity provision and fee generation. This usage is much more capital efficient, as the collateralization ratio can be set much lower than with SNX in the past.
    • Example C-Ratio: SNX C-Ratio is set at 500% vs. USDC’s 120% C-Ratio.
  • Traders: Enhanced trading experience with cross-margin and multi-collateral options alongside a user-friendly onboarding process from integrator partners.

Any Questions

If you have any comments or questions, join the conversation on Discord.

New Synthetix Perps Markets: JTO & ORDI

https://blog.synthetix.io/new-synthetix-perps-markets-ordi-jito/

Synthetix is thrilled to introduce two new perpetual futures markets for leverage trading on Synthetix Perps. The newly added perpetual markets include Jito (JTO) and Ordi (ORDI). These markets were approved in SIPs 2044 and 2045 with configurable values set by SCCP-2076.

Trading Synthetix Perps

Synthetix Perps are available for trading on platforms integrating SNX liquidity and supporting perps trading, such as Kwenta and Polynomial. The Synthetix DAO does not provide trading front-ends, relying instead on third-party user-facing protocols.

For more details on integrating with Synthetix Perps, refer to the Synthetix Docs.

New Perpetual Futures Markets

The addition of these markets significantly broadens the range of assets available for leverage trading through Synthetix Perps. Prices are determined by the decentralized off-chain Pyth Network oracle. Fees and other configurable values, subject to change, can be found in SCCP-2076 or via frontend integrators.

Listing New Markets

New perps markets on Synthetix are added based on market demand, liquidity, and volatility. Approval from Synthetix Governance via a SIP and/or subsequent SCCP is required to configure market variables. Data feeds from Pyth and Chainlink are essential for the inclusion of proposed assets.

Basics of Staking SNX in 2024

https://blog.synthetix.io/basics-of-staking-snx-in-2024/

Overview

Staking SNX tokens plays a pivotal role in supporting Synthetix’s liquidity layer. This is vital for supplying liquidity to onchain derivative traders engaged in products like Synthetix Perps, spot, and options markets. Your contribution as a staker, or liquidity provider (LP), ensures the smooth functioning of these products with deep liquidity and low fees. In return for this role, trading fees collected from traders are proportionately distributed to stakers via a weekly debt reduction.

The most prominent usage of liquidity generated from staking is Synthetix Perps, which has processed over $40 billion in trading volume and rewarded stakers with over $30 million in fees in the past year alone. However, staking isn’t without its risks. In scenarios of market imbalance, you, as a staker, are responsible for absorbing trader profits, acting as the liquidity buffer. While Synthetix Perps is designed to mitigate delta risk for traders, the possibility of short-term imbalances persists. We strongly suggest that you conduct thorough research before you start staking.

This guide is a simplified primer, focusing on the core aspects of SNX staking in an easy-to-read format. For a deeper dive into the nuances and more advanced topics, please look at the SNX Documentation.

Note that this guide pertains specifically to staking SNX in the V2x system.

Steps for Staking SNX

  • Stake Your SNX by minting sUSD:
    • Optimism: Go to staking.synthetix.io, connect to Optimism, click “Start Staking,” and stake your preferred amount of SNX.
    • Ethereum Mainnet: Visit the same link, connect to the ETH Mainnet, and follow the same steps as above.

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  • Understanding SNX Staking and sUSD Debt Dynamics
    • When you stake your SNX tokens, you engage in a process known as ‘minting’ sUSD. This action is comparable to taking out a loan against your staked SNX. The sUSD you mint represents a form of debt, which can be viewed as an advance against future trading fees you’ll earn. These fees are distributed weekly, gradually reducing your sUSD debt.
    • To regain access or unlock your staked SNX, you need to ‘burn’ the sUSD. This act is essentially repaying your debt.
    • It’s important to note that your sUSD debt is not fixed. It fluctuates in response to the overall performance of the debt pool. Users are advised to hedge their debt using dSNX and/or manual hedging.
  • Claiming and Managing Rewards:
    • Trading fee distributions are automated through a weekly fee burn, directly reducing your debt. No action is required by users.
  • Hedge Your Debt:
  • Maintain Collateralization Ratio (C-Ratio):
    • Ensure your C-Ratio is balanced to avoid liquidation risks and maintain capital efficiency.
  • Automated Minting with Gelato:
    • Automate your SNX staking & minting for capital efficiency, like auto-staking more SNX at a specific C-Ratio.
      • Ex: Auto stake additional SNX if your C-Ratio is at least 550%
  • Understanding Lock Periods:
    • A 7-day lock period applies upon minting sUSD and staking SNX. You can’t transfer staked SNX or burn/reduce sUSD debt beyond the target C-Ratio during this period.
  • Unstaking SNX & transferred:
    • Unlock your SNX from staking by burning all your sUSD debt. Note: SNX in escrow cannot be transferred.
  • Weekly Snapshot:
    • Be staked before each Wednesday epoch to be eligible for rewards.
  • Liquidation & Risks: If your C-Ratio falls below the current liquidation ratio, you will be liquidated and incur a liquidation penalty. Regularly check your C-Ratio to prevent liquidation.
    • You can raise your C-Ratio at any time by burning sUSD, or staking additional SNX, to raise your C-Ratio.

Any Questions?

If you have any comments or questions, join the conversation on Discord.

The Differences Between Synthetix V2x and V3

https://blog.synthetix.io/the-differences-between-v2x-and-synthetix-v3/

Synthetix Evolution: From V2x to V3

Synthetix has evolved significantly with its transition from V2x to V3. This blog post will explore the fundamental differences between these two versions, highlighting how Synthetix V3 is set to revolutionize onchain derivatives with a liquidity layer that’ll empower DeFi developers with infrastructure and liquidity.

Synthetix V2x: The Foundation

Synthetix V2x, established in 2018, has been instrumental in shaping the landscape of onchain derivatives and financial instruments within DeFi. Originally designed to facilitate synth-to-synth trading, it enabled the exchange of assets like sUSD for sBTC or sETH at a fixed fee. Over time, V2x has evolved, serving as a foundational layer upon which developers have built a range of financial products, including Perps, Options, and Structured Products.

However, V2x has its limitations due to the original design constraints:

  • Single Debt Pool: V2x operates with a unified debt pool, limiting risk management and diversification options for Liquidity Providers (aka stakers.)
  • SNX-Only Collateral: The system initially allowed only SNX as collateral, restricting the scalability of the platform and the variety of on-chain derivatives it could support.
  • Limited LP Control: Liquidity Providers had constrained flexibility, being able to contribute only to a single, governance-controlled debt pool, which limited their participation options.
  • Complex Multi-Chain Deployment: Integrating V2x across multiple networks posed significant challenges.

It’s important to note that while Synthetix is transitioning to V3, V2x will continue to play a significant role in the near term. V2x is expected to handle the majority of volume and activity from LPs and traders in the upcoming months as V3 gradually scales up with increased liquidity, LP participation, and other functionalities. This coexistence phase is crucial for a smooth transition and maintaining system robustness.

Synthetix V3: Advancements and Flexibility

V3 introduced significant improvements to the system and was rebuilt from the ground up to support a modular system to support DeFi derivative developers, traders, and liquidity providers with:

  • Collateral Agnostic System: It allows the use of any ERC-20 token with a supported oracle as collateral, broadening the spectrum of assets to collateralize the network.
  • Separation of Core Components: Detaching the core CDP system from liquidity pools and derivative markets allows for a streamlined developer & user experience.
  • More straightforward Integration: The platform is more user-friendly for integrators, lowering the hurdles to build on Synthetix.
  • Robust Developer Tooling: Enhanced tools like Cannon allow developers to test and configure without the complexities of rebuilding Synthetix or using intricate scripts.
  • Oracle Agnostic System: V3 is not confined to a specific oracle but instead employs an oracle manager system. This enables market developers to source from various onchain oracles.
  • Diverse LP Usage: Users have multiple interaction options – as borrowers, liquidity providers, or a combination of both. 
  • Support for Various Derivatives: V3 supports an array of onchain derivatives, fostering innovation in derivative creation.
  • Experimentation Flexibility: V3’s adaptable system allows governance to scale the platform more effectively, accommodating a broader range of traders and liquidity providers (LPs). This flexibility enables experimental initiatives, such as the Andromeda Release on Base. This experiment uses USDC as collateral for LPs and margin collateral for perpetual contracts. The aim is to observe how this impacts LP and trader engagement in a system that’s simpler to understand and has minimized risk.

Impact on Different Stakeholders

For Traders

  • Expanded Trading Options in Synthetix Ecosystem: A diverse range of onchain derivatives within Synthetix broadens trading opportunities, transforming the ecosystem into a comprehensive hub for traders seeking all their trading needs.
  • Enhanced Market Dynamics: Introducing new collateral types and oracles leads to more dynamic and efficient markets that traders can enjoy.
  • Reduced Complexity: Simplified system architecture makes it easier for traders to understand and interact with the protocol and integrators.

For Developers

  • Easier Protocol Integration: V3’s streamlined core components and improved tooling lower barriers to development on Synthetix.
  • Enhanced Flexibility: The ability to use various oracles and collateral types opens up more possibilities for innovative onchain financial products.
  • Developer Tooling: Cannon and other dev tools reduce the need for extensive setup, allowing more focus on creative aspects of development.

For Liquidity Providers

  • Improved Risk Management: The diversified debt pool structure in V3 offers increased risk management and control for LPs.
  • Collateral Options: LPs can now choose from a broader range of assets to collateralize the market and provide liquidity to derivatives.
  • Expanded Options: Engage as a Liquidity Provider (LP), a borrower in the CDP protocol, or both. This dual role allows for a self-repaying loan against your collateral, pre-borrowing against future earned fees.

The Path To Fully Featured Synthetix V3

The journey to fully unleash Synthetix V3’s capabilities starts with the Andromeda Release. This initial phase, already underway, will soon see a gradual increase in open interest and liquidity limits, paving the way for a seamless integration of traders and integrators. Key decisions shaping Synthetix V3’s future, especially in establishing permissionless markets and pools, will be guided by the Spartan Council and Synthetix Governance.

The platform will continue to evolve as we progress towards a fully permissionless Synthetix V3. This evolution will include the approval of new collateral types, the creation of diverse markets and pools, and the flourishing of innovative derivatives. Governance will initially play a pivotal role, gradually transitioning the system towards increased autonomy. This phased approach will steer Synthetix V3 towards its ultimate goal: becoming a comprehensive liquidity layer that benefits developers, liquidity providers, and traders within the DeFi ecosystem.

Any Questions?
If you’ve got any comments or questions, join the conversation on Discord.

Going Deeper

Learn more about Synthetix V3 by visiting the following links:

–   Synthetix V3 Docs

–   Synthetix V3 FAQ

–   Synthetix V3 Development Progress

–   Where Synthetix V3 could take us – CC Cavalier

–   Getting to the Synthetix v3 End Game – CC Cavalier

–   $500m is waiting for you to #BuildOnSynthetix – CC Cavalier

–  Synthetix V3 is on Mainnet – CC Noah

–  Perps V3 Testnet Competition

–  “A New hope” – Kain Warwick

– A fork in the road. – Kain Warwick

– A quick explainer on Synthetix V3 – CC Matt

– Synthetix V3 Loans: No Interest & No Fees – CC Matt

– Chain & Gain – CC Cavalier

– V3 Pools : A Comprehensive Explainer

– V3 Markets : A Comprehensive Guide

– V3 Vaults: A Guide

– What is the Andromeda Release

The SNX Base Bridge

https://blog.synthetix.io/the-snx-base-bridge/

Introduction

SNX is now supported by the Base Bridge, allowing SNX tokens to be bridged from Ethereum to Base. This will help to support the upcoming Andromeda Release and its Buyback and burn mechanism.

Bridging SNX to Base

The SNX Base Bridge facilitates the transfer of SNX tokens to Base. Users interested in providing liquidity for the SNX/USDC pair on Base will contribute to the buyback and burn mechanism.

However, it’s important to note that SNX staking will not be available on Base, so users looking to stake their SNX tokens should not use this bridge for that purpose.

To bridge your SNX tokens, visit the Official Base Bridge or Bungee, a bridge aggregator with SNX tokens on Ethereum. If you’re an SNX staker, please ensure your SNX is transferrable by visiting the staking dapp before attempting to bridge.

Buyback and Burn Mechanism

The buyback and burn mechanism is a crucial element of the Andromeda Release. Approved via SIP-345, 40% of the fees generated from Perps V3 on Base are designated for the buyback and subsequent burning of SNX tokens. This process, which aims to reduce the SNX token supply, is detailed in the Andromeda buyback and burn blog post.

Liquidity on Base

Aerodrome, a fork of the Velodrome DEX on Optimism, will play a crucial role in enhancing SNX liquidity on Base. This liquidity effort will support both the buyback and burn process and those interested in acquiring and holding SNX tokens.

The Synthetix Treasury Council is utilizing its veAERO holdings to direct emissions toward the Aerodrome SNX/USDC pool. Refer to the Treasury Council channel on the SNX Discord for up-to-date efforts as to Synthetix liquidity on Base.

Staking on Base with USDC

The Synthetix protocol is introducing a new collateral option on Base, utilizing USDC as the collateral type for staking and perps margin. This experimental approach, approved by SIP-348, is designed to test the impact of a new collateral type and perp margin on this new chain. Note that SNX remains the staking token on Optimism and Ethereum.

It’s important to remember not to bridge SNX to Base with the expectation of staking on Base, as this has not yet been approved.

Any Questions?

If you’ve got any comments or questions, join the conversation on Discord.

Buyback and Burn & The Andromeda Release

https://blog.synthetix.io/the-andromeda-release-buyback-and-burn/

The Andromeda Release marks a significant evolution in Synthetix, introducing Core V3 and Perps V3 deployment, incorporating USDC as new collateral, and expanding to Base. This step elevates Synthetix to a multi-chain protocol.

A key feature of this release is the implementation of a buyback and burn mechanism for the SNX token, utilizing fees generated from Perps on Base, as outlined in SIP-345.

Mechanism of Buyback and Burn

As per SIP-345, 40% of fees earned on Base are designated for the buyback and burn of SNX tokens, executed via a yearn-inspired buyback and burn contract. After allocating the integrator’s share, the net fees are divided according to the following structure:

Fee Allocation from Andromeda on Base

  • Partners: 20%
  • LPs: 40%
  • SNX Buyback and Burn (BBB): 40%

Note: These percentages are subject to change with future SIP/SCCP approvals.

Overview of the Andromeda Release

The Andromeda Release represents a significant step in Synthetix’s evolution, introducing Core V3 and Perps V3 and incorporating USDC as a new form of collateral. This development transitions Synthetix into a multi-chain protocol across the Optimism Superchain. Key new features for Perps V3 include cross-margin and multi-collateral support, USDC perp margin, and improvements to the Perps engine.

The release also marks a testing phase for Synthetix, particularly with USDC as collateral on the new Base blockchain. This strategic move is expected to attract more developers, liquidity providers, and traders, broadening the Synthetix ecosystem. Andromeda’s success will be gauged by its market performance, liquidity provision, and user experience, setting the stage for Synthetix’s future multi-chain plans.

Reducing the SNX Token Supply

The buyback and burn strategy aims to decrease the overall SNX token supply. It involves allocating fees generated on the platform to purchase and subsequently ‘burn’ SNX tokens, removing them from circulation.

Following the recent ending of SNX token inflation as per SIP 2043 and the isolated Base deployment, this method efficiently rewards SNX holders, negating the need for a complex multi-chain bridge and burn system. It also benefits SNX holders by eliminating penalties for non-staking, as detailed in The End of Synthetix Token Inflation.

Past and Future Fee Results

Synthetix has experienced a notable increase in fee generation, with Perps V2 accumulating over $31 million in trading fees. The Andromeda Release, with its enhanced functionality and multi-chain capacity, is expected to continue this upward trend, reinforcing the buyback and burn strategy.

The Future of Buyback and Burn

As Synthetix expands into new chains, the buyback and burn mechanism remains a key strategy for fee distribution in the short- to medium term. However, Synthetix Governance has signaled a willingness to adopt more streamlined cross-chain fee distribution methods as they become technologically viable.

Any Questions?

If you’ve got any comments or questions, join the conversation on Discord.

Perps V3 Features & Release Explainer

https://blog.synthetix.io/perps-v3-features-release-explainer/

TLDR

  • Perps V3 Upgrade: A significant improvement over Perps V2, introducing native cross-margin, new margin types, and NFT-based account controls for enhanced trading and usability.
  • Perps V2 Successes: Over $38 billion in trading volume, attracting numerous traders and accruing over $28m fees, powered by innovative features like an improved off-chain low latency oracle system from Pyth Network.
  • Key Perps V3 Features: Unified margin system, expanded collateral margin options, MEV-resistant liquidation process, and improved order settlements.
  • Andromeda Release: Features the first implementation of Perps V3 with Core V3, new collateral options like USDC, deployment on Base chain, and buyback and burn to distribute rewards. Learn more.
  • Ethereum Mainnet Plans: This particular deployment is designed to cater to a broad spectrum of users, from whales and market makers to protocols like Ethena that focus on delta-neutral positions for stablecoin scaling.

Introduction

Synthetix Perps V3 represents a significant upgrade for the world of onchain perpetual futures. Building on the successes and learnings of V2, this new version is designed to further enhance trading efficiency, usability, and resilience. It introduces many new features that traders love, such as native cross-margin, new margin types, and NFT-account-based controls.

Perps V2: A Foundation of Success

Synthetix Perps V2 was highly successful; it achieved over $38 billion in trading volume, attracted tens of thousands of unique traders, and accrued over 28 million in fees for liquidity providers. Perps V2 will remain operational and accessible alongside the new Perps V3 deployment, ensuring choice for users.

These impressive milestones were the result of innovative features like the improved off-chain low latency oracles, from Pyth Network,and risk-management features like dynamic funding rates and price impact, which collectively enhanced the trader and liquidity provider experience. 

These features allowed Synthetix to slash fees in line with centralized perps exchanges and ensure delta neutrality for liquidity providers while supporting 80+ markets across cryptocurrencies, commodities, and forex.

The features behind Perps V2 have become commonplace across the industry, being implemented by many protocols to provide the backbone for their successes.

V3: Building on Success

Leveraging the achievements of V2, Synthetix Perps V3 introduces key upgrades to elevate the trading experience. These features focus on improving the trader and liquidity provider experience, simplifying the integrator experience, and enabling further integrations into the Synthetix Ecosystem.

  1. Native Cross-Margining: Unified margin system, open positions will use the same pooled margin account. Gains on one position are allocated to offset losses on other positions. Allows for easier trading account management.
  2. Expanded Collateral Options: Includes a variety of synths from the V3 spot market, broadening trader control. Users will be able to open trades with sETH, sBTC, and many more as collateral.
  3. MEV-Resistant Liquidation Process: Implements gradual, configurable liquidations, reducing the risk of MEV-sandwiched liquidations.
  4. Improvements to Deterministic Settlements: Enhances deterministic settlement. (not sure if there’s anything else to include here)
  5. NFT-Based Accounts: Accounts will be controllable via an NFT, allowing traders to transfer their trading accounts, or provide permissions to other accounts to do limited activities on their behalf, such as trading.

Andromeda Isolated Deployment & Experimentation on Base

Synthetix Perps V3’s first implementation will be featured in the Andromeda Release, with the deployment of Core V3 and Perps V3 simultaneously, the addition of new collateral in the form of USDC, and deployment on a new blockchain, Base.

Read more about the upcoming Andromeda release by reading our latest blog post or Twitter space recap.

Ethereum Mainnet Plans

The Core V3 + Perps V3 release on Ethereum Mainnet represents a significant evolution for Synthetix, targeting medium to large traders and protocols in need of perps on L1. This particular deployment is designed to cater to a broad spectrum of users, from whales and market makers to protocols like Ethena that focus on delta-neutral positions for stablecoin scaling.

Ethena’s strategy to utilize this L1 platform is a prime example of how Synthetix V3 can facilitate the scaling of delta-neutral stablecoins. By leveraging the robust and efficient trading environment of Perps V3 on Ethereum Mainnet, Ethena aims to enhance the scalability of its stablecoin through delta-neutral ETH perps.

Tailored to meet the demands of L1 traders who are accustomed to the trade-offs of higher gas fees, this deployment of Core V3 + Perps V3 emphasizes functionality and efficiency. While its primary design caters to a specific segment of the market, the deployment is accessible to all. In doing so, Synthetix V3 positions itself as a versatile and adaptable platform, capable of supporting a diverse range of trading strategies and catering to the needs of various users, from individual traders to large-scale protocols.

Conclusion

Building on the robust foundation and successes of Perps V2, V3 introduces features and enhancements that promise to elevate the trading experience for traders and liquidity providers. 

With its upcoming deployment on Base chain, via the Andromeda Release, and Ethereum Mainnet, Perps V3 is set to address a wide range of needs in the DeFi space.

Going Deeper

Learn more about Synthetix V3 by visiting the following links:

–   Synthetix V3 Docs

–   Synthetix V3 FAQ

–   Synthetix V3 Development Progress

–   Where Synthetix V3 could take us – CC Cavalier

–   Getting to the Synthetix v3 End Game – CC Cavalier

–   $500m is waiting for you to #BuildOnSynthetix – CC Cavalier

–  Synthetix V3 is on Mainnet – CC Noah

–  Perps V3 Testnet Competition

–  “A New hope” – Kain Warwick

– A fork in the road. – Kain Warwick

– A quick explainer on Synthetix V3 – CC Matt

– Synthetix V3 Loans: No Interest & No Fees – CC Matt

– Chain & Gain – CC Cavalier

– V3 Pools : A Comprehensive Explainer

– V3 Markets : A Comprehensive Guide

– V3 Vaults: A Guide

– What is the Andromeda Release

Synthetix Council Elections December 2023

https://blog.synthetix.io/synthetix-council-elections-december-2023/

It’s almost time for the Synthetix community to nominate and elect new council members. Your participation as a community member and staker is crucial, as it directly influences Synthetix’s direction. Positions in all councils – Spartan, Treasury, Ambassador, and Grants – are open for election beginning on Dec 17th. For more information about each council and its roles, please refer to the blog post below.

Important Dates:

  • Nominations Open: Dec 17th 23:59 UTC
  • Voting Commences: Dec 21st 23:59 UTC
  • Nominations & Voting Conclude: Jan 1st 23:59 UTC

Epoch Overview: The governance cycle is structured in 4-month epochs. Councillors will serve for the entire 4 month epoch upon election.

Election Mechanism: Nominations and voting for the councils are conducted entirely on-chain. Visit governance.synthetix.io to participate by nominating yourself, learning about the candidates, and voting.

Councils at a Glance:

  • Spartan Council: Central to the protocol, this council votes on improvement proposals and parameter changes. They approve new features and direct the vision of the protocol.
  • Treasury Council: Manages the Synthetix Treasury, funding various initiatives and managing stipends.
  • Grants Council: Focuses on funding projects & tools that enhance the Synthetix ecosystem.
  • Ambassador Council: Represents Synthetix in the wider Ethereum, Optimism, and DeFi governance communities, advocating for Synthetix & ecosystem interests in external governance.

Each council plays a pivotal role in our governance framework, driving the direction of Synthetix.

Council Rewards: Active council members are awarded a monthly stipend of 2,000 SNX. This reward is set by the Treasury Council and can be changed at any time.

Participate in the Process: We encourage every community member to get involved, whether by nominating yourself for a council position, voting for candidates, or directing questions to potential councilors on Discord. Your participation is crucial in shaping the future of Synthetix.

Spartan Council Panel: SNXweave will once again be hosting a LIVE panel to hear from the Spartan Council incumbents and candidates and discuss hard-hitting questions posed by the community. Tune in on December 21st at 10pm UTC to hear them talk about their vision for Synthetix and what they’ll do as council members! RSVP by visiting the Synthetix Discord.

Any Questions? If you have any questions, join the conversation on Discord.

Community Governance Call December 2023

https://blog.synthetix.io/community-governance-call-december-2023/

The Synthetix community is invited to the community governance call on December 20th at 8 PM UTC. This call offers a vital opportunity to discuss the protocol’s future, share insights, and learn more about upcoming updates. The call will feature updates from core contributors, council members, and ecosystem integrators.

Call Details:

  • Date: December 20th, 10 PM UTC
  • Location: Live on Discord. RSVP here: Discord Link.

Agenda:

  • Welcome
  • Spartan Council Update
  • Review of Perps V2 Successes
  • Andromeda Release Overview
  • Perps V3 on Base & ETH Mainnet
  • Core V3 Updates
  • DAO and Ecosystem Brief:
    • Council Updates
    • Ecosystem Updates

The End of Synthetix Token Inflation

https://blog.synthetix.io/the-end-of-synthetix-token-inflation/

TLDR

  • SIP 2043 Implementation: Ends SNX token inflation.
  • SNX Inflation History: Initiated in 2019 to bolster staking, adjusted in 2022 to a dynamic system adjusting to staker behavior.
  • Diminishing Impact of Inflation Incentives: Recently, inflation became less effective as an incentive, leading to its termination.
  • Unique Inflationary Model: Distributing inflationary rewards across all healthy stakers caused confusion among users due to staking complexity.
  • New Rewards Structure: Post-inflation, both stakers and non-stakers benefit from the changes. Stakers receive additional benefits, and non-stakers are no longer disadvantaged.
  • Future of Synthetix without inflation: Simplifies staking, improves user experience, and paves the way for strategies like buyback and burn, beginning in the upcoming Andromeda Release, to reduce the SNX token supply.

A New Era for Synthetix: SIP 2043 and the End of SNX Inflation

With the passage of SIP 2043 by governance and subsequent implementation, Synthetix has reached a pivotal moment, ending SNX token inflation. This significant shift impacts both token-holders and liquidity providers, marking a pivotal point for the protocol.

The Evolution of SNX Inflation

SNX inflation, introduced in 2019, was pivotal post-Havven, creating a bull market in liquidity and protocol growth. More recently, in 2022, inflationary rewards were adjusted to dynamically adjust to a target staking. However, inflation’s effectiveness as a staking incentive has recently diminished as inflationary rewards have reduced to single digits, leading to the decision to end it under SIP 2043.

Synthetix’s Unique Inflationary Model

The protocol’s approach to inflation, distributing it across all healthy stakers via staking rewards, was unique in DeFi but led to confusion among some users. Concerns about inflationary and staking complexity were notable among users.

The Rationale Behind SIP 2043

The effectiveness of inflation as an incentive has diminished over time. Thus, SIP 2043 proposed ending SNX inflation, aligning with the protocol’s new strategies, such as using trading fees for buybacks and burns. This change reflects a shift towards a more sustainable economic model.

Trading Fees and Protocol Sustainability

As of the publish date in Dec 2023, Synthetix Perps generated over 28.5 million in trading fees, a notable increase for the protocol from previous years. The initial inflation model was designed as a bridge to this kind of reward sustainability, now achievable without the need for inflationary incentives.

Simplifying Staking in the Post-Inflation Synthetix Protocol

Post-inflation, the staking process in Synthetix has been streamlined, eliminating the need for weekly claims. Stakers now automatically receive fee burn rewards, though actively managing debt still remains crucial.

New Rewards Structure Post-Inflation in Synthetix

The post-inflation era introduces a distinct rewards structure for stakers and non-staking token holders. Both benefit from this new structure:

For Stakers

  • Free Loan Against SNX Collateral: Stakers receive a free loan (no interest, no fee) against their SNX collateral in sUSD. This loan must still be hedged against debt, but users typically use it for liquidity mining and other yield-generating activities.
  • Automated Fee Burn: Fees collected from protocol trading activity are automatically distributed to LPs weekly, creating a self-repaying loan for stakers.
  • Buyback and Burn Strategy: Reduces SNX supply by using fees generated from the multi-chain Andromeda Release to obtain and burn SNX. Learn more about the Andromeda Release & buyback and burn here.
  • Weekly Claims no longer necessary: Fees are burned automatically, weekly claiming is no longer necessary.

For SNX Token Holders

  • Decreased SNX Supply: Reduces SNX supply by using fees generated from the multi-chain Andromeda Release to obtain and burn SNX.

Conclusion

With SIP 2043, Synthetix ends its SNX token inflation. This shift, driven by sustainable trading fees from markets like Synthetix Perps, marks a new phase where inflation is no longer essential for LP incentives, streamlining the staking process and shaping a more efficient model for the protocol.

Synthetix Lists 9 New Perps Markets

https://blog.synthetix.io/synthetix-lists-9-new-perps-markets/

Synthetix is thrilled to announce the introduction of 9 new perpetual futures markets for leverage trading on Synthetix Perps. The newly added perpetual markets include TRB, TIA, IMX, MEME, FET, GRT, PYTH, ANKR, and BONK.

These markets were approved in SIPs 20352037203920402041, and 2042, with configurable values set by SCCP-2063.

Trading Synthetix Perps

Synthetix Perps are available for trading on platforms integrating SNX liquidity and supporting perps trading, such as KwentaPolynomial, and dHEDGE. The Synthetix DAO does not provide trading front-ends, relying instead on third-party user-facing protocols.

For more details on integrating with Synthetix Perps, refer to the Synthetix Docs.

New Perpetual Futures Markets

The addition of these markets significantly broadens the range of assets available for leverage trading through Synthetix Perps. Prices are determined by the decentralized off-chain Pyth Network oracle. Fees and other configurable values, subject to change, can be found in SCCP-2063 or via frontend integrators.

Listing New Markets

New perps markets on Synthetix are added based on market demand, liquidity, and volatility. Approval from Synthetix Governance via a SIP and/or subsequent SCCP is required to configure market variables. Data feeds from Pyth and Chainlink are essential for the inclusion of proposed assets.

What is the Andromeda Release?

https://blog.synthetix.io/what-is-the-andromeda-release/

The Andromeda Release marks a significant advancement for Synthetix, featuring the deployment of Core V3 and Perps V3 simultaneously, the addition of new collateral in the form of USDC, and deployment on a new blockchain, Base. This release will propel Synthetix into a multi-chain protocol, leveraging the capabilities of the Optimism Superchain.

This initial rollout combines Core V3 and Perps V3, aiming to attract new developers, liquidity providers, and community members to the Synthetix ecosystem.

The Andromeda Release is underpinned by several SIPs, which provide detailed technical specifications for this update. These include:

  • SIP-336 – Deploy Synthetix V3 Core on Base 
  • SIP-338 – Deploy SNX token via Base Bridge  (superseded if 350 passes)
  • SIP-350:  SNX Token Bridging via Wormhole  (superseded by 338 if fails to pass)
  • SIP-337: Perps v3
  • SIP-346: Perps v3 Integrator Incentive  (20% fee share for integrators)
  • SIP-348: Enable USDC for Andromeda on Base    
  • SIP-345: Buyback and burn SNX on Base  (50% fee share for SNX via buyback and burn)

Building on the success of Synthetix Perps

Synthetix Perps V2 achieved remarkable success, generating over $35+ billion in trading volume, attracting tens of thousands of unique traders, and accruing over $25 million in fees for SNX Stakers.

Building on this foundation, Perps V3 introduces several upgrades to improve the trading and developer experience:

  • Cross Margin: Allows traders to open multiple positions across different markets, subject to a limit of one position per market. The account margin value fluctuates based on the PNL of each open position.
  • Multi Collateral: Supports multiple collateral types, currently limited to synths registered with the V3 spot market. This is expected to include USDC, sUSD, sETH, sBTC, and other governance-approved spot synths.
  • Account-Based Access Controls: This feature enables the delegation of account permissions, such as modifying collateral and managing positions, to additional addresses, enhancing extensibility and composability.
  • Liquidation Improvements: Implements gradual, non-sandwichable liquidation of large positions, with configurable delays between partial liquidations.
  • Deterministic Settlements: Improves the settlement process to ensure that the execution price is the earliest valid price post-commitment, minimizing the impact of network congestion.

Integrating partners like Polynomial, Kwenta, Infinex, dHEDGE, and many others, have confirmed their deployment to Base, underscoring their crucial role in the upcoming success of Andromeda and Perps V3.

The Essence of Testing in Andromeda

The Andromeda Release serves as a testing ground for new developments. The introduction of USDC as a new collateral type on a new chain presents several areas to explore. Key aspects under testing include:

  • USDC as Collateral & Demand on Base: Assessing the impact of USDC collateral on liquidity and stability.
  • Demand for Trading Perps & Derivatives on Base: Evaluating the shift of traders from CEXs and other chains to Base.
  • USDC Wrapper: Evaluating the impact of simplifying trader interactions by using USDC in front-end integrations and wrapping it into sUSD for backend Synthetix contracts.
  • Sensitivity to Fee Share: Analyzing the response of USDC LPs and SNX stakers to variations in fee share percentages, alongside integrator responses to integrator fee share.
  • Seamless Integration: Monitoring the feedback from integrators regarding Core V3, Perps V3, trader experience, and LP experience.

Isolation of the Andromeda Release on Base

The Andromeda Release on Base is an isolated deployment, meaning it will not be connected to the Optimism/Ethereum Mainnet V2X system. This separation enables distinct testing and development in Andromeda, allowing for direct comparisons with the existing Optimism Perps V2 deployment.

Additionally, this isolation necessitates the SNX buyback and burn as the model of distributing fees to SNX holders. As per SIP-345, the fee share has been set to 50%.

Defining Success for Andromeda

Success in the Andromeda release will be measured by:

  • Stable and Efficient Market Operations: Ensuring seamless functionality of the perps market and effective utilization of USDC as collateral.
  • Robust Liquidity Provision and Trading: Maintaining strong liquidity and active trading using Perps V3.
  • Positive User Experience: Facilitating smooth and efficient transactions for LPs, traders, and integrators.

Initial Rollout: What to Expect

The initial deployment of Andromeda on Base is tentatively scheduled for December as a mainnet alpha with limited capabilities that will progressively increase before a public launch. This phase will include the launch of Core V3 and Perps V3 on Base with USDC as collateral and USDC usage for traders using Synthetix Perps.

Andromeda: LP vs Trader Perspective

The Andromeda experience differs for Liquidity Providers (LPs) and traders:

  • For LPs: The introduction of USDC as collateral offers new opportunities for liquidity provision and fee generation. The LP (aka staker) experience will be improved through new integrations from dHEDGE/Toros that auto claim and auto compound rewards for LPs.
  • For Traders: Enhanced trading experience with Synthetix Perps, augmented by the inclusion of USDC for greater flexibility. Traders will get to utilize the partners they know and love, including Kwenta, Polynomial, Infinex, and many others, to access Synthetix Perps. 

The Future of Synthetix with Andromeda

The Andromeda release represents a transformative step for Synthetix, aiming to reinforce its position as a cutting-edge DeFi protocol. It brings expanded collateral options, improved trading experiences, and innovative features. The community’s involvement in testing and governance will play a crucial role in guiding Synthetix’s future multi-chain plans.

Synthetix V3: Collateralized Debt Positions (CDPs)

https://blog.synthetix.io/synthetix-v3-collateralized-debt-positions-cdp/

Introduction

Collateralized Debt Positions (CDPs) are a fundamental component of many DeFi protocols, including Synthetix. They allow users to deposit collateral and borrow against it, creating a system of over-collateralized loans. This article delves into the intricacies of CDPs, their real-world examples, how they function in other DeFi protocols like MakerDAO, and their implementation in Synthetix V3.

What is a Collateralized Debt Position?

A Collateralized Debt Position (CDP) is a financial arrangement where a user deposits an asset (the collateral) into a smart contract and receives a loan in the form of a stablecoin or another asset. The loan is over-collateralized, meaning the value of the collateral is greater than the value of the loan. This over-collateralization ensures that the loan is always fully backed, even if the value of the collateral decreases. If the value of the supplied collateral falls below the liquidation ratio, the collateral is liquidated to settle the generated debt.

Real-World Examples

A real-world example of a CDP is a mortgage. When you take out a mortgage to buy a house, the house serves as collateral for the loan. If you default on your mortgage payments, the bank can seize the house to recoup its losses. In this case, the house is the collateral, and the mortgage is the debt position.

CDPs in Other DeFi Protocols: MakerDAO

MakerDAO is one of the most well-known DeFi protocols that utilize CDPs. In MakerDAO, users can deposit Ether (ETH) as collateral to mint DAI, a stablecoin pegged to the US dollar. The deposited ETH is locked in a Vault, MakerDAO’s version of a CDP. If the value of the deposited ETH falls below a certain threshold, the Vault can be liquidated, and the ETH is sold to ensure that all outstanding DAI is fully backed.

Collateralized Debt Positions in Synthetix

In Synthetix, CDPs are implemented and used through a system of vaults, pools, and markets. Users deposit collateral into vaults and delegate their collateral to pools, which in turn generate stablecoin credit against this collateral to provide liquidity to various markets. This system allows Synthetix to facilitate the creation of a wide range of onchain financial products.

Vaults

In the V3 iteration, users deposit governance-approved collateral into vaults to generate sUSD, the Synthetix ecosystem stablecoin. Drawing parallels, a V3 vault resembles MakerDAO’s and Liquity’s CDP. Synthetix, however, enables CDP owners to delegate collateral to pools, helping to fuel derivative markets for traders.

Pools

LPs delegate their collateral to pools, which act as pooled CDPs, providing liquidity to markets and enabling developers to generate liquidity for onchain financial products. These markets then generate fees, benefitting LPs. Pool owners govern the liquidity distribution to markets. For instance, the Spartan Council Pool would use governance SCCPs to decide liquidity distribution across markets.

Markets

V3’s markets, with liquidity from pools, facilitate the creation of onchain derivatives. Once delegated liquidity, markets can access sUSD, fostering a liquid environment for trading. By participating in well-designed markets with suitable fee structures, liquidity providers can earn trading fees.

Example Markets: Perpetual Futures (like Synthetix Perps), Options (like Lyra), Spot (like Spot Synths), Insurance, Lottery (like Pool Together), etc.

Liquidations

When the collateralization ratio of a particular liquidity position drops below the liquidation collateralization ratio for its corresponding collateral type, the position may be liquidated. When this occurs, the collateral and debt associated with the position are distributed among all of the other liquidity positions participating in the pool with the same collateral type pro-rata (after a fixed amount of the collateral is provided to the liquidator, typically a bot, as an incentive).

Anyone can check if a liquidity position can be liquidated with the isPositionLiquidatable function. If this function returns true, then the position may be liquidated with the liquidate function. The address calling the function will receive liquidationRewardD18 per the getCollateralConfiguration function (or all of the position’s collateral if it is less than this amount).

Borrowing sUSD in Synthetix: Interest-Free Loans

One of the unique features of Synthetix is the ability for users to borrow sUSD against their collateral without having to pay any interest or issuance fees. This is a significant advantage over other DeFi protocols, which often charge interest on loans.

In Synthetix, users can deposit any ERC-20 token approved by the Synthetix governance into a vault. Once the collateral is deposited, users can mint sUSD up to the collateralization ratio set by the governance. The minted sUSD can be used within the Synthetix ecosystem or traded on other platforms.

The absence of interest or issuance fees makes borrowing sUSD in Synthetix particularly attractive. However, it’s important to note that while there are no direct fees, there are risks associated with borrowing. If the value of the collateral falls below the liquidation ratio, the position can be liquidated, and the collateral can be sold to cover the debt.

Going Deeper

Learn more about Synthetix V3 by visiting the following links:

–   Synthetix V3 Docs

–   Synthetix V3 FAQ

–   Synthetix V3 Development Progress

–   Where Synthetix V3 could take us – CC Cavalier

–   Getting to the Synthetix v3 End Game – CC Cavalier

–   $500m is waiting for you to #BuildOnSynthetix – CC Cavalier

–  Synthetix V3 is on Mainnet – CC Noah

–  Perps V3 Testnet Competition

–  “A New hope” – Kain Warwick

– A fork in the road. – Kain Warwick

– A quick explainer on Synthetix V3 – CC Matt

– Synthetix V3 Loans: No Interest & No Fees – CC Matt

– Chain & Gain – CC Cavalier

– V3 Pools : A Comprehensive Explainer

– V3 Markets : A Comprehensive Guide

– V3 Vaults: A Guide

Synthetix V3 Vaults: An Explainer

https://blog.synthetix.io/synthetix-v3-vaults-a-comprehensive-guide/

Introduction

Vaults are a fundamental component of the Synthetix V3 ecosystem, serving as the primary entry point for liquidity providers. They allow users to deposit and delegate collateral to pools, which use this collateral to provide liquidity to derivative markets. This article delves into the intricacies of how vaults function within Synthetix V3.

The Role of Vaults in Synthetix V3

Users can deposit their collateral into governance-approved vaults and delegate this collateral to pools. Pools generate sUSD against this collateral and use it to provide liquidity to markets. This ensures that derivative markets like Synthetix Perps have ample liquidity to support trading activities. Additionally, the vaults offer users the option to deposit collateral and borrow sUSD, without exposure to active markets.

Liquidity providers can earn rewards from trading fees by delegating collateral to well-designed markets with appropriate fee structures. This incentive encourages more liquidity providers to participate in the market.

Pools and Vaults

Every pool has one vault for each collateral type. The owner of each pool will set the approved collateral types. Keeping the collateral in pools separated into vaults has the following implications:

  • When a liquidity position is liquidated, its collateral and debt are distributed pro-rata across the other liquidity positions of the same collateral type in the pool (i.e. of the other positions in the vault), not across all positions in the pool.
  • Entire vaults may be liquidated.
  • Pool owners can attach rewards distributors to vaults, allowing them to incentivize liquidity of particular types to be added to their pools.
Synthetix V3 Vaults: An Explainer

Collateral Types, Risk Parameters, Supply Caps, and Governance

The Synthetix Spartan Council holds the authority to adjust the following collateral risk variables by voting on community-presented Synthetix Improvement Proposals (SIP) or SCCPs:

  1. Accepted Collateral Types: Governance can approve any ERC-20 token with a price feed as vault-approved collateral.
  2. Risk Parameters: The Spartan Council has the power to modify the risk parameters associated with each collateral type. These include but are not limited to the following:
    1. Issuance Ratio: Liquidity providers are restricted in minting snxUSD tokens below the issuance ratio set for the collateral. Example: An issuance ratio of 150% for ETH means a user can mint 1 sUSD for every $1.5 in ETH
    2. Liquidation Ratio: If the collateralization ratio of a specific liquidity position falls below the liquidation collateralization ratio for its corresponding collateral type, the position may be liquidated. The council can determine the liquidation collateralization ratio for each collateral type. Example: Liquidation ratio of 120% for ETH

Account Permissions in Vaults

Accounts in Synthetix V3 can delegate permissions to addresses other than the owner. This feature is useful for improving security or for collaboratively managing liquidity positions. The different types of permissions include:

  • ADMIN: Admins have permission to do everything that the account owner can (including granting and revoking permissions for other addresses) except for transferring account ownership.
  • WITHDRAW: Addresses with this permission may call the `withdraw` function on behalf of the account.
  • REWARDS: Addresses with this permission may call the `claimRewards` function on behalf of the account.
  • MINT: Addresses with this permission may call the `mintUSD` function on behalf of the account.
  • DELEGATE: Addresses with this permission may call the `delegateCollateral` function on behalf of the account.

Note that there are no permissions for `DEPOSIT` or `BURN`. These are permissionless operations, which can be performed by anyone on any liquidity position because they improve the position’s health.

Going Deeper

Learn more about Synthetix V3 by visiting the following links:

–   Synthetix V3 Docs

–   Synthetix V3 FAQ

–   Synthetix V3 Development Progress

–   Where Synthetix V3 could take us – CC Cavalier

–   Getting to the Synthetix v3 End Game – CC Cavalier

–   $500m is waiting for you to #BuildOnSynthetix – CC Cavalier

–  Synthetix V3 is on Mainnet – CC Noah

–  Perps V3 Testnet Competition

–  “A New hope” – Kain Warwick

– A fork in the road. – Kain Warwick

– A quick explainer on Synthetix V3 – CC Matt

– Synthetix V3 Loans: No Interest & No Fees – CC Matt

– Chain & Gain – CC Cavalier

– V3 Pools : A Comprehensive Explainer

– V3 Markets : A Comprehensive Guide

Synthetix V3 Markets: A Comprehensive Guide

https://blog.synthetix.io/synthetix-v3-markets-a-comprehensive-guide/

Introduction

Synthetix V3 brings a groundbreaking approach to creating onchain derivatives and financial products, with markets at its core. These markets draw from liquidity pools, fueled by liquidity providers (LPs) who delegate collateral and stablecoin liquidity. Let’s unpack how this dynamic system operates.

The Role of Markets in Synthetix V3

Markets are the backbone for creating various onchain financial products, from spot markets and perpetual futures to options, insurance, and many more. These markets tap into pools, which amass collateral and liquidity delegated by individual LP’s, facilitating seamless derivatives trading.

For instance, consider Synthetix Perps. It requires deep liquidity, originating from LPs (aka stakers in V2x). The Synthetix Spartan Council allocates this liquidity, determining parameters like open interest limits, fees, and other important variables. When trades occur, LPs momentarily counterbalance the trade, only until another trader, driven by risk-balancing incentives, steps in to balance the market skew back to neutral.

Efficiently designed markets, such as the Perps market, incorporate risk management tools like dynamic funding rates and price impact mechanisms to transiently expose LPs to risk and maintain equilibrium. Fees generated from trades and liquidations are distributed to stakers. And while Synthetix Perps isn’t V3-native yet, the collateral flow and fee distribution principle remains consistent.

Before we dive deeper, it’s crucial to grasp the broader framework of V3. We’ll explore vaults, pools, and delve deeper into markets subsequently.

But before all of that, let’s take in a graphic that displays the entire flow of fees and liquidity throughout all pieces of the system.

Synthetix V3 Markets: A Comprehensive Guide

Alright, back into the details.

Vaults

In the V3 iteration, users deposit governance-approved collateral into vaults to generate sUSD, the Synthetix ecosystem stablecoin. Drawing parallels, a V3 vault resembles MakerDAO’s and Liquity’s collateralized debt positions (CDP). Synthetix, however, enables CDP owners to delegate stablecoin credit to pools, thus fueling derivative markets for traders.

Pools

LPs delegate their collateral to pools, which act as pooled CDPs, providing liquidity to markets and enabling developers to generate liquidity for onchain financial products. These markets then generate fees, benefitting LPs. Pool owners govern the liquidity distribution to markets. For instance, the Spartan Council Pool would use governance SCCPs to decide liquidity distribution across markets.

Markets

V3’s markets, with collateral and liquidity from pools, facilitate the creation of onchain derivatives. Once delegated liquidity, markets can access sUSD, fostering a liquid environment for trading. By participating in well-designed markets with suitable fee structures, liquidity providers can earn trading fees.

Example Markets: Perps, Options, Spot, Insurance, Lottery, etc.

Incentives for Liquidity Providers:

By delegating collateral to well-designed markets with appropriate fee structures, liquidity providers can generate trading fees. Ideally, this incentive encourages more liquidity providers to participate in the market, ultimately enhancing the overall liquidity of the Synthetix V3 ecosystem.

Walkthrough: Creating a Perpetual Futures Market with Synthetix V3

Synthetix V3 can seamlessly create a perpetual futures market. Here’s the step-by-step process:

  1. Collateral Deposit by Stakers: LPs deposit collateral, ex: SNX/ETH/USDC, into a V3 vault. This allows them to delegate to the Spartan Council Pool, which in turn delegates liquidity to the perpetual futures market.
  2. Stablecoin Withdrawal by Perpetual Futures Market: The market accesses stablecoins from the pool (via the LP) to facilitate trading.
  3. Trading Fee Implementation: Each open or closed position incurs fees, which flow back through the market and pool to be distributed pro rata to LPs.
  4. Incentivizing LPs: As trading occurs, fees accrue. These fees are channeled back to LP’s pro rata.

Alternatively, it may be easier to understand this system by taking a step back and viewing it from start to finish.

Synthetix V3 Markets: A Comprehensive Guide

Going Deeper

Learn more about Synthetix V3 by visiting the following links:

–   Synthetix V3 Docs

–   Synthetix V3 FAQ

–   Synthetix V3 Development Progress

–   Where Synthetix V3 could take us – CC Cavalier

–   Getting to the Synthetix v3 End Game – CC Cavalier

–   $500m is waiting for you to #BuildOnSynthetix – CC Cavalier

–  Synthetix V3 is on Mainnet – CC Noah

–  Perps V3 Testnet Competition

–  “A New hope” – Kain Warwick

– A fork in the road. – Kain Warwick

– A quick explainer on Synthetix V3 – CC Matt

– Synthetix V3 Loans: No Interest & No Fees – CC Matt

– Chain & Gain – CC Cavalier

– V3 Pools : A Comprehensive Explainer

Perps V3 Testnet Competition: A Wrap-Up & Rewards Breakdown

https://blog.synthetix.io/perps-v3-testnet-competition-a-wrap-up-rewards-breakdown/

The Perps V3 Testnet Trading Competition on Base has drawn to a close. Over three weeks, we saw an incredible amount of trading activity, competitive spirit, and valuable user feedback that has helped improve Perps V3. Here’s a roundup of all the happenings, insights, and a reward breakdown from the event:

Highlights:

  • The competition ran from October 2nd at 5 pm UTC and concluded on October 23rd at midnight UTC.
  • Traders received part of a total prize pool of $15,000 worth of SNX, 15 KWENTA tokens, and exclusive NFTs thanks to the SNX Grants Council.
  • Along with the primary trading competition, participants were encouraged to report bugs and glitches, which led to improvements in Perps V3 contracts & integrator frontends.

Top Traders & Winners:

Here’s a salute to our top-performing traders based on the leaderboard standings:

  1. First Place: Address 0x6dc88b231cd04dd1b1e525161162993f47140006 takes the grand prize of $5,000 in SNX + 5 Kwenta tokens + 1 GC NFT.
  2. Second Place: Address 0xc14baefd5631ec25c9e4d02f3253b1e59d848911 walks away with $2,500 in SNX + 4 Kwenta tokens + 1 GC NFT.
  3. Third Place: Address 0x1c1e747a6be850549e9655addf59fd9e7cc2d4dc earns $1,000 in SNX + 3 Kwenta tokens + 1 GC NFT.
  4. Fourth Place: 0x99bd6e311993a626f633fd872f915d8c52aa52f8 receives $500 in SNX + 2 Kwenta tokens + 1 GC NFT.
  5. Fifth Place: 0xd4fe0846c636824873d074f3ffa6a5b868e957b2 receives $500 in SNX + 1 Kwenta token + 1 GC NFT.
  6. Sixth Place: 0x0b3efd33cd7c3e1cf352837db7427be125d6981c receives $500 in SNX + 1 GC NFT.
  7. Seventh Place: 0x8cf9cd0322b505e891cf05d54ce0d8cf20169901 receives $500 in SNX + 1 GC NFT.
  8. Eighth Place: 0xbc2ba97266fff5393dab71dd06c3ac72ca80e9e7 receives $500 in SNX + 1 GC NFT.
  9. Ninth Place: 0xa718e07fef1eb78bf6da08a3477d874b54126e22 receives $500 in SNX + 1 GC NFT.
  10. Tenth Place: 0x8275c3eecc67a1101e9eb5bacd32042a81f4630c receives $500 in SNX + 1 GC NFT.

Special Rewards:

Apart from the regular leaderboard rankings, some traders stood out in specific categories and are being rewarded with $500 in SNX:

  • Most Volume: 0x1140321cce279b4a2158571eb377669def562ac4 – 364.8M in volume.
  • Most Trades: 0xc14baefd5631ec25c9e4d02f3253b1e59d848911 – 107 total trades.
  • Most Funding: 0x8cf9cd0322b505e891cf05d54ce0d8cf20169901 – $217k in net funding.
  • Most Synth Margin: 0x8f7499e3263de11d151c41cf31d59073a4632161 – $193K in non-sUSD transferred b/w wallet and account.
  • In the Arena: 0xd8dbbbbcd0c3020282164055e42956fb0696ac43 – Highest average open interest throughout the competition.
  • Worst Trader: 0xd06332d7e80469f0aa8da1597fee6ef45fc14cc6 – 16 losing trades out of 47 total trades.

Key Statistics:

Diving into the numbers:

  • Total Notional Size: A solid $2,693,471,159 was traded throughout the competition.
  • Total Trades: 2,252 trades were executed.
  • Unique Traders: 133 unique traders participated in the competition.
  • Liquidations: 78 unique traders faced complete liquidations, accounting for 90 total liquidations. This means 58% of accounts were liquidated at least once, and some were liquidated more than once.

Enhancements Based on Data Insights & User Reports:

The insights from the testnet trading competition provided invaluable data, especially concerning transaction costs, prompting these updates to Perps V3:

  • Optimized incentives for the keeper system network that processes trades
  • Less frequent offchain price lookups
  • Revised liquidation reward distribution

These changes are designed to significantly improve the trader experience. Additionally, the swift resolution of community-reported front-end bugs has greatly enhanced the usability of Kwenta and Polynomial integrations. 

Thankfully, no major issues have been identified on the contract side that might affect Perps V3 release timelines.

In Conclusion:

The Perps V3 Testnet Trading Competition has been a resounding success. The activity, feedback, and engagement from our community were beyond our expectations.

Prize winners will soon receive their rewards from Synthetix Grants & Kwenta.

If you have any questions or comments, please visit the Synthetix Discord.

Synthetix Integrates Notifi for Real-Time Notifications

https://blog.synthetix.io/synthetix-integrates-notifi-for-real-time-notifications/

Synthetix is thrilled to announce its integration with Notifi, a leader in DeFi alerts, to bring real-time notifications to Synthetix users. This integration aims to enhance user engagement and keep the community informed by providing immediate updates through their preferred communication channels.

Key Highlights:

  • Notifi notifications empower Synthetix users with immediate information on critical updates.
  • Users gain direct access to real-time alerts for staking positions, protocol updates, and other critical reminders.
  • The integration significantly bridges the communication gap in the DeFi landscape, simplifying the user experience.

Navigating Information Overload in DeFi

The challenge facing many DeFi enthusiasts is the sheer volume of information, making it difficult to separate signal from noise. By integrating with Notifi, Synthetix addresses this challenge, offering users the ability to customize their notification preferences. This feature ensures participants receive important alerts, including account snapshots, claim reminders, and liquidation warnings, among others, reducing the necessity for continuous online monitoring.

Activating Notifi Alerts on Synthetix

Stay up-to-date with your Synthetix by enabling Notifi alerts. Here’s a quick guide on how to activate these alerts:

  • Enabling the Alerts: It’s simple to opt-in for these alerts. Just head over to the Synthetix Staking UI and look for the notification bell icon once you’ve connected your wallet. Click on it to select and activate the alerts of your choice.
  • Types of Alerts:
    • 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. (coming soon!)
    • C-Ratio Health Alerts: Get alerted when your C-Ratio goes above or below the threshold you set.
  • Receiving Notifications: Choose your preferred channels to receive these alerts. Notifi & Synthetix support notifications through:
    • Discord
    • Telegram
    • Email

That’s all there is to it! 

Notifi & Privacy

Notifi places a high emphasis on user privacy and security, especially concerning Personal Identifiable Information (PII). It operates on a strict policy where it doesn’t track IP addresses or unnecessary user information. The only data Notifi holds are the user-provided wallet addresses, preferred communication channels (like email, Discord, or Telegram), and specific notification settings to ensure precise and relevant alert delivery. This minimal data requirement reinforces Notifi’s commitment to maintaining user privacy while providing a seamless, personalized alert system for all its users.

Learn more about Notifi & its privacy policies by visting this link.

Questions?

If you have questions or comments, join the conversation on the Synthetix Discord.

Synthetix V3 Pools: A Comprehensive Guide

https://blog.synthetix.io/synthetix-v3-pools-a-comprehensive-guide/

Introduction

In the Synthetix V3 ecosystem, pools play a crucial role in facilitating liquidity for various markets. They serve as a bridge between liquidity providers and markets, allowing the latter to access the necessary liquidity to back on-chain derivatives. This article provides a comprehensive understanding of how pools function within Synthetix V3.

Understanding Pools in Synthetix V3

In Synthetix V3, liquidity providers deposit their collateral into CDP-style vaults and delegate their stablecoin credit to pools. These pools, in turn, allow markets to withdraw stablecoins to underwrite various financial products.

Synthetix V3 Pools: A Comprehensive Guide

There are several types of pools in Synthetix V3:

  1. Preferred Pool (Spartan Council Pool): This is the main pool managed by the Spartan Council. It is the default pool suggested for liquidity providers to participate in. The ID of this pool can be retrieved by calling the getPreferredPool function.
  2. Approved Pools: The Spartan Council also specifies approved pools with IDs that can be retrieved with the getApprovedPools function. These are expected to be a series of pools owned by the Spartan Council with exposure to different combinations of markets.
  3. Zero Pool: A pool exists at ID “0” which backs no markets and never can (because it has no owner). Depositing collateral with this pool is similar to using a decentralized borrowing protocol, where the only functionality is minting and burning sUSD.
  4. Permissionlessly Created Pools: During the Synthetix V3 Alpha/Beta phases, a feature flag has been set that disables the permissionless creation of pools. When governance chooses to alter this feature flag, anyone will be able to create and configure their own pool.

The Role of Pools in Synthetix V3

Pools in Synthetix V3 serve as a crucial link between liquidity providers and markets. They receive delegated stablecoin credit from vaults (by way of LPs) and then delegate liquidity to markets, allowing markets to withdraw these stablecoins to back various financial products. This mechanism ensures that markets have the necessary liquidity to facilitate trading and other financial activities.

Synthetix V3 Pools: A Comprehensive Guide

Moreover, pools provide an avenue for liquidity providers to earn rewards. By participating in well-designed markets with suitable fee structures, liquidity providers can earn rewards from trading fees. This incentive encourages more liquidity providers to participate in the market, thereby enhancing the overall liquidity of the Synthetix V3 ecosystem.

The Role of Pool Owners

Pool owners are responsible for allocating liquidity to markets. Specifically, for the Spartan Council Pool, this allocation is governed by the passage of Spartan Council Configuration Proposals (SCCPs).

Rewards Distributors

Pool owners may register and remove rewards distributors from the vaults in their pools. Rewards distributors are smart contracts that can distribute rewards among all liquidity positions in a specified vault (instantaneously or over time) and allow these rewards to be collected.

Pools and Vaults

Every pool has one vault for each of its pool owner-approved collateral types. Keeping the collateral in pools separated into vaults has the following implications:

  • When a liquidity position is liquidated, its collateral and debt are distributed pro-rata across the other liquidity positions of the same collateral type in the pool (i.e. of the other positions in the vault), not across all positions in the pool.
  • Entire vaults may be liquidated, referred to as a vault liquidation.
  • Pool owners can attach rewards distributors to pools, allowing them to incentivize liquidity of particular collateral to be added to their pools.

Going Deeper

Learn more about Synthetix V3 by visiting the following links:

–   Synthetix V3 Docs

–   Synthetix V3 FAQ

–   Synthetix V3 Development Progress

–   Where Synthetix V3 could take us – CC Cavalier

–   Getting to the Synthetix v3 End Game – CC Cavalier

–   $500m is waiting for you to #BuildOnSynthetix – CC Cavalier

–  Synthetix V3 is on Mainnet – CC Noah

–  Perps V3 Testnet Competition

–  “A New hope” – Kain Warwick

– A fork in the road. – Kain Warwick

– A quick explainer on Synthetix V3 – CC Matt

– Synthetix V3 Loans: No Interest & No Fees – CC Matt

– Chain & Gain – CC Cavalier

Synthetix V3 Loans: No interest. No fees.

https://blog.synthetix.io/synthetix-v3-loans-no-interest-no-fees/

TL;DR: Not only is Synthetix V3 a groundbreaking revolution for derivative protocols but it’s also set to be a dominant player in onchain borrowing, with zero interest or fees charged to borrowers. Users can deposit collateral to generate sUSD without interest or other fees. 


Synthetix V3 has been touted as a protocol for protocols that will power countless derivatives. However, the lesser-known secret of V3 is that Synthetix will become a powerhouse in onchain borrowing.

The core of the entire protocol, as explained in my prior post on V3, is a CDP protocol. Users deposit governance-approved collateral and generate sUSD. The differentiator with Synthetix V3 is that liquidity providers (LPs) can delegate this collateral and sUSD to provide liquidity to derivative markets and earn fees.

Users can also simultaneously engage in CDP lending and market LP positions, delegating liquidity generated from CDPs to derivative markets and earning fees that automatically repay sUSD loans.

What about users who want to use Synthetix as a pure lending protocol? They can do so, and it’s encouraged by allowing users to borrow sUSD at 0% interest and 0 fees.

Why is it encouraged? Onchain derivatives will require LARGE amounts of liquid sUSD available for traders to utilize, making it beneficial for the protocol to incentivize users to increase the supply of sUSD available for traders.

No Fees Explained

The goal of the Synthetix protocol isn’t to generate interest or fees when sUSD is generated by users; instead, it’s focused on allowing for the creation of onchain derivatives. sUSD liquidity is a necessity.

Borrow sUSD & Automatically Repay with Market Fees

Synthetix V3 introduces a new approach to liquidity and borrowing. Instead of being required to choose between borrowing sUSD or being a liquidity provider, Synthetix V3 allows you to do both. Users can deposit collateral, delegate liquidity to markets, and generate an sUSD loan. This loan is automatically paid off by fees paid out from perps traders. You can think of the loan as a prepayment for future fees, similar to Alchemix.

Here’s an in-depth look at the three ways you can utilize Synthetix V3:

1.  Pure CDP Protocol: Like traditional lending protocols, deposit your approved collateral and generate sUSD. No gimmicks, interest, or fees. Straightforward, simple, and highly efficient.

2.  Pure LP Protocol: Dive into the world of liquidity provisioning, without generating sUSD. By depositing your collateral, you can delegate it to derivative markets such as perps. The reward? You earn fees from traders by using your collateral to underwrite derivative markets.

3.  Both CDP and LP Protocol: Combine the power of both worlds. Deposit your collateral, generate sUSD, and simultaneously delegate to derivative markets like perps. Here’s the kicker – the fees you earn from traders will automatically pay down your sUSD loan.

Tutorial for future use

🚨
There’s no current use case for v3-generated sUSD. This is an experimental tutorial for Synthetix V3. Any incentives (including voting power) are exclusively determined based on participation in Synthetix V2.

If Synthetix V3 were fully operational with LPs (Liquidity Providers) transitioned from V2X to V3, here’s how you would use SNX as a lending protocol. This tutorial is merely for educational purposes (b/c V3 sUSD does not serve a purpose yet), so you can see how simple this process is.

1.  Head to V3 liquidity app or any other user interface for interacting with the Synthetix V3 protocol.

2.  Deposit collateral to the Zero Pool, which backs no markets and never can (because it has no owner). The only functionality for this pool is minting and burning sUSD. (link out)

3.  Borrow stablecoins up to your preferred collateralization ratio.

4.  Monitor your collateralization ratio to ensure your account is healthy.

5.  That’s it. You’re done.

Go Deeper

Learn more about Synthetix V3 by visiting the following links:

–   Synthetix V3 Docs

–   Synthetix V3 FAQ

–   Synthetix V3 Development Progress

–   Where Synthetix V3 could take us – CC Cavalier

–   Getting to the Synthetix v3 End Game – CC Cavalier

–   $500m is waiting for you to #BuildOnSynthetix – CC Cavalier

–  Synthetix V3 is on Mainnet – CC Noah

–  Perps V3 Testnet Competition

–  “A New hope” – Kain Warwick

A fork in the road. – Kain Warwick

A quick explainer on Synthetix V3 – CC Matt

The Perps V3 Testnet Trading Competition on Base is Live

https://blog.synthetix.io/the-perps-v3-testnet-trading-competition-on-base-is-live/

1. Kick-off: The Perps V3 Testnet Trading Competition has officially begun. It started on October 2nd, at 5 pm UTC, and will conclude on October 23rd at midnight UTC.

2. Trading Platforms: You can participate in the competition via Kwenta or Polynomial perps v3 interfaces. Don’t forget to connect to the Base Goerli Testnet for trading.

3. Leaderboard: For real-time competition standings, visit this link.

4. Prize Allocation: The rewards structure stands as follows:

  • 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 – 5th place: $500 SNX + 2-1 Kwenta tokens respectively
  • 6th – 10th place: $500 SNX each

5. Whitelisted Participants: See if you’re part of the chosen pool to participate in this competition here.

6. Competition Rules: Transferring balances between wallets or trading accounts is prohibited and will lead to disqualification. Trading is allowed at any time within the competition period.

7. Report Bugs: Notice any glitches? Report bugs on the Synthetix Discord in the #v3-bug-report channel or your respective frontend integrator.

8. Bug Bounties: Bug bounty prizes are awarded based on severity for smart contract and webapp bugs, as outlined on Immunefi. Rewards range from $10,000 to $1,000 for smart contract bugs, and $300-$1000 for webapp bugs. Note that payouts for reported bugs from the testnet competition are not the same rate as payouts listed in Immunefi for live contracts.

9. Questions? Stay in touch through the Synthetix Discord and Twitter.

10. More Details: To delve into more detailed information about the competition, check out the original blog post here.

Let the trading commence!

Synthetix Perps V3 Base Testnet Trading Competition

https://blog.synthetix.io/synthetix-perps-v3-testnet-trading-competition/

We are thrilled to announce the Synthetix Perps V3 Trading Competition, beginning next week, October 2nd, on Base Testnet! For this event, we’ve partnered with two frontend integrators, Kwenta and Polynomial, to bring a testnet trading experience to our ecosystem.

As part of the competition’s launch, Synthetix is offering a generous prize pool of $15,000 SNX, 15 Kwenta tokens, and exclusive NFTs thanks to the SNX grants council.

Synthetix Perps V3 Testnet Trading Competition Details:

The competition will begin on October 2nd. The winners will be selected based on their trading performance, with the highest returns taking the largest rewards:

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

There will be other rewards handed out to select trade actions that will be announced after the competition.

How to Participate in the Trading Competition:

  1. Navigate to the Synthetix Perps V3 trading integrators on either Kwenta or Polynomial.
  2. Connect your wallet to Base Goerli testnet (https://chainlist.org/chain/84531).
  3. Place trades between October 2nd and October 15th.
  4. Winners will have their prizes distributed at the end of the competition period.

Bug Bounty Prizes:

Synthetix will be paying bug bounties based on the levels set on Immunefi, but discounted by 90%.

Smart Contract

  1. Critical – $1,000-$10,000
  2. High – $5,000
  3. Medium – $1,000

Webapp

  1. Critical – $300-$3,000
  2. High – $1,000

Learn more about the Synthetix Bug Bounty Program on Immunefi: https://immunefi.com/bounty/synthetix/

Competition Scoring

The primary leaderboard will be calculated by traders’ PnL.

Competition Rules

No transferring balances between wallets or trading accounts. Any transfers of collateral will disqualify your address from the rewards pool.

Traders can trade at any time between the start date of October 2 and the competition end date of October 15th. Official start and end times will be announced and updated closer to October 2nd.

To prevent sybiling, we have removed addresses from the original signup forms with duplicate emails, discord handles, or network IDs at signup.

Synthetix Perps V3 Mainnet Release

The Mainnet release of Synthetix Perps V3 is projected for the subsequent months, offering the full suite of Synthetix V3 features. Stay connected with our community on the Synthetix Discord, as well as through Twitter.

Synthetix Perps lists stETH/ETH

https://blog.synthetix.io/synthetix-perps-lists-steth-eth/

Synthetix is excited to announce the addition of stETH/ETH perpetual futures markets, now available for leverage trading via Synthetix Perps.

These markets were approved by governance in SIP 2031 and had initial configurable values set by SCCP-2044.

Trading Synthetix Perps

Synthetix Perps can be traded on front-ends that integrate with SNX liquidity and support perps trading. These include Kwenta, Polynomial, and dHEDGE.

The Synthetix DAO does not provide any trading front-ends and instead relies on third-party user-facing protocols to serve traders. For more information on integrating with Synthetix Perps, please refer to the Synthetix Docs.

New Perpetual Futures Markets

The addition of these new markets expands the number of assets available for leverage trading through Synthetix Perps. Prices will be set by the decentralized off-chain Pyth Network oracle, and fees may vary depending on the asset.

The latest configurable values, including fees, open interest, and more, can be found in SCCP-2044. These are configurable governance values and can be changed at any time. Refer to pricing and variables displayed in integrator frontends and the SCCP forum for updated information.

Listing New Markets

The process for adding new perps markets to Synthetix is based on demand, liquidity, and volatility. All markets must be approved by Synthetix Governance through a SIP and/or a subsequent SCCP to configure variables. Additionally, data feeds from Pyth and Chainlink are necessary for any proposed assets to be considered for inclusion.

Synthetix Perps lists ZRX & UMA

https://blog.synthetix.io/synthetix-perps-lists-zrx-uma/

Synthetix is excited to announce the addition of ZRX & UMA perpetual futures markets, now available for leverage trading via Synthetix Perps.

These markets were approved by governance in SIP 2032 and had initial configurable values set by SCCP-2042.

Trading Synthetix Perps

Synthetix Perps can be traded on front-ends that integrate with SNX liquidity and support perps trading. These include Kwenta, Polynomial, and dHEDGE.

The Synthetix DAO does not provide any trading front-ends and instead relies on third-party user-facing protocols to serve traders. For more information on integrating with Synthetix Perps, please refer to the Synthetix Docs.

New Perpetual Futures Markets

The addition of these new markets expands the number of assets available for leverage trading through Synthetix Perps. Prices will be set by the decentralized off-chain Pyth Network oracle, and fees may vary depending on the asset.

The latest configurable values, including fees, open interest, and more, can be found in SCCP-2042 .These are configurable governance values and can be changed at any time. Refer to pricing and variables displayed in integrator frontends and the SCCP forum for updated information.

Listing New Markets

The process for adding new perps markets to Synthetix is based on demand, liquidity, and volatility. All markets must be approved by Synthetix Governance through a SIP and/or a subsequent SCCP to configure variables. Additionally, data feeds from Pyth and Chainlink are necessary for any proposed assets to be considered for inclusion.

Synthetix Perps Rewards: Optimism Trading & Lido Incentives Extension

https://blog.synthetix.io/blog-post-synthetix-rewards-programs-lido-steth-general-op-trading-incentives-restart/

Mark your calendars! Synthetix is rebooting its perps trading incentives on Wed Sep 13th at 0:00 UTC for both the Optimism Perps Rewards Program and the Lido stETH Perps Rewards programs. Here’s a brief review on what you need to know:


Synthetix Perps Optimism Trading Incentives – Extension:

  • Extension News: Additional five weeks of OP rewards for trading Synthetix Perps – 100k OP per week for five weeks.
  • Reward Caps: Rewards can’t exceed fees generated. Ex: $50k in trading fees generated rewards a maximum $50k in OP rewards.
  • Trading Epoch: First epoch starts Sep 13th at 0:00 UTC, first fee snapshot and subsequent distribution will be on Sep 20/21st.
  • Reward Structure: Based on trade fees paid and an optional staked SNX (Synthetix) multiplier.
  • Snapshot: A snapshot is taken each Wednesday at 0:00 UTC, rewards are distributed within the following day or two.
  • Distribution Details: Visit participating integrators to receive your pro-rata share of weekly rewards based on your trade score.
  • Learn more: Synthetix Perps Optimism Trading Incentives – September Extension Update

Lido stETH Synthetix Perps Trading Incentives:

  • Extension News: Additional five weeks of OP rewards– 1500 OP per week
  • Reward Caps: Rewards can’t exceed fees generated. Ex: $1k in trading fees generated, rewards a MAXIMUM of $1k in OP rewards.
  • Trading Epoch: First epoch starts Sep 13th at 0:00 UTC, first fee snapshot and subsequent distribution will be on Sep 20/21st.
  • Weekly Rewards: 1,500 OP for traders in the stETH perps market
  • Reward Distribution: Pro-rata based on the trader score for the stETH market, visit participating integrators to claim.
  • Learn more: Lido stETH Synthetix Perps Trading Incentives – September Extension Update

Important Note: Only OffChainDelayedOrders processed on participating integrators are eligible for OP rewards. Please confirm your frontend integrator’s participation before trading.

Any questions?

Have any questions? Head over to the Synthetix Discord to learn more.

Synthetix Lists 19 New Perps Markets

https://blog.synthetix.io/synthetix-lists-19-new-perps-markets/

Today, we announce the addition of 19 new perpetual futures markets available for leverage trading on Synthetix Perps. The complete list of new perpetual markets includes ALGO, EOS, XLM, ICP, XTZ, RUNE, FXS, BAL, KNC, RNDR, ONE, PERP, ZIL, SUSHI, ZEC, ENJ, 1INCH, CELO, and SEI.

These markets were approved in SIPs 2029, 2031, 2032, and 2033 and had initial configurable values set by SCCP-2041.

Trading Synthetix Perps

Synthetix Perps can be traded on front-ends that integrate with SNX liquidity and support perps trading. These include Kwenta, Polynomial, and dHEDGE.

The Synthetix DAO does not provide any trading front-ends and instead relies on third-party user-facing protocols to serve traders. For more information on integrating with Synthetix Perps, please refer to the Synthetix Docs.

New Perpetual Futures Markets

The addition of these new markets expands the number of assets available for leverage trading through Synthetix Perps. Prices will be set by the decentralized off-chain Pyth Network oracle, and fees may vary depending on the asset.

The latest configurable values, including fees, open interest, and more, can be found in SCCP-2041 .These are configurable governance values and can be changed at any time. Refer to pricing and variables displayed in integrator frontends and the SCCP forum for updated information.

Listing New Markets

The process for adding new perps markets to Synthetix is based on demand, liquidity, and volatility. All markets must be approved by Synthetix Governance through a SIP and/or a subsequent SCCP to configure variables. Additionally, data feeds from Pyth and Chainlink are necessary for any proposed assets to be considered for inclusion.

Community Governance Call August 2023

https://blog.synthetix.io/community-governance-call-august-2023/

The next Synthetix community governance call is scheduled for Aug 29th at 8PM UTC (08/29 afternoon/evening for western hemisphere; 08/30 morning for eastern hemisphere). Interested in learning more about Synthetix and its plans for the future? Make sure to RSVP to the call to hear from SNX core contributors, council members, and various ecosystem partners.

The call will be held live on Discord; RSVP by clicking this Discord Link or https://discord.com/events/413890591840272394/1143552751251505254.

The current agenda for this month’s meeting (subject to change) is as follows:

  • Welcome
  • Spartan Council Update
  • Perps v3 Testnet Trading Competition
    • Scoring system & Prizes
    • Bug Reporting
  • Perps v3 Updates
    • Native cross-margin & Multi-Collateral support
    • Revamped liquidations
    • Native user accounts with RBAC
  • Synthetix V3 Updates
    • Core System Update
    • Cross-Chain Synthesis
    • Base Deployment
    • Governance Roadmap
  • DAO AND ECOSYSTEM UPDATES
    • Council Updates
    • Ecosystem Updates

Synthetix Governance Elections – August 2023

https://blog.synthetix.io/synthetix-elections-august-2023/

Nominations for the Synthetix Councils’ (Spartan, Grants, Treasury, and Ambassador Council) next epoch will open on Thursday, August 17th. The epoch will last four months, starting August 30th. The voting period will begin on August 21st and end on August 30th.

All elected council members will receive a monthly stipend from the Synthetix Treasury of 2,000 SNX per month. Elections are hosted on the Synthetix Governance Module. Read the tutorial section to learn how to nominate yourself.

Learn more about each Synthetix Council below or in the Synthetix Docs.

Election Timeline

– August 17th – Council nominations begin

– August 21st – Council voting begins

– August 30th – Council voting ends, nominations close & new epoch begins.

Synthetix Governance – Election Module

Synthetix Governance Elections - August 2023

Here are some quick notes on the interface and the election process as a whole:

– Nominees can connect their wallet and nominate themselves

– Wallet profiles are powered by Boardroom (shout out to them), which helps populate the wallet profiles with off-chain metadata that is stored via signing an off-chain message (their wallet profile can ONLY be edited if they own the wallet); the most important metadata here is that nominees can add their own pitches.

– Nominees can only nominate for one of the FOUR councils

– All the ElectionModules utilize a quadratic voting mechanism EXCEPT treasury council, which is linear

– The ElectionModule utilizes a Merkle root tree to help collect a user’s L1 voting power (if applicable) and combine it with their L2 voting power

– All contract interactions (nominations and voting) are done on Optimism

Synthetix Council Details

Each of the councils at Synthetix serves a different and vital role in running the Synthetix protocol. Here are some quick details about each council.

  • Treasury Council (4 members) – The Treasury Council (TC) manages the synthetix treasury and provides funding to the other governance bodies, cc stipend payments, and other discretionary incentives.  
  • Spartan Council (8 members) – The Spartan Council (SC) is the central governing body of the Synthetix protocol. The SC votes on overall improvement proposals and parameter changes.                  
  • Grants Council (5 members) – The Grants Council (GC) is a value-based Synthetix elected body whose ultimate goal is to fund beneficial and high-quality public goods projects through grants, initiative bounties, or competition prizes.
  • Ambassador Council (5 members) – The Ambassador Council (AC) actively promotes and advocates for the interests of Synthetix in the overall Ethereum (and defi) ecosystem.

Nominating Tutorial and Guidelines

1. First, go to Governance.Synthetix.io; you’ll be greeted by the various governance bodies of Synthetix and the current nominees. Connect your wallet to proceed.

Synthetix Governance Elections - August 2023

2. Once you’ve connected your wallet (make sure you’re on Optimism), click “Nominate Yourself” for the council you’re interested in. Then confirm the on-chain transaction and wait for it to confirm.

3. Once confirmed, you’ll be presented with a page of the current nominees for the council you’ve nominated for.

Synthetix Governance Elections - August 2023
Click the three dots in the above picture, next to “edit nomination,” then click “Edit Profile” to add details about your pitch and yourself.

4. Click the “Delegation Pitch” and then fill out your profile with a pitch for yourself.

Synthetix Governance Elections - August 2023
Click the “Delegation Pitch” and then fill out your profile with a pitch for yourself.

5. Fill out the “Edit Profile” section below. Any sections required will be marked as such. Once complete, click “Save Profile,” then sign the transaction.

Synthetix Governance Elections - August 2023

6. That’s it! Your nomination will now feature your name, pitch, and all other important information in one easy-to-read and understand dapp.

SNXweave Spartan Council Panel

SNXweave will once again be hosting a LIVE panel to hear from the Spartan Council candidates and discuss hard-hitting questions posed by the community. Tune in to hear them talk about their visions for Synthetix and what they’ll do as council members!

If you plan on nominating for the Spartan Council, contact ProofofCake via Discord to include you in the panel! The panel is tentatively scheduled for August 25th.

Election Voting Info

Voting will begin on August 21, 2023, and will be conducted in the Synthetix election module.

Once voting begins, you can use the Synthetix Docs guide to learn how to vote.

Any Questions?

If you have further questions about the Synthetix Council elections, please join us on Discord.

Synthetix lists Tether USDT Perps

https://blog.synthetix.io/synthetix-lists-tether-usdt-perps/

Synthetix is happy to announce the addition of the Tether USDT perpetual futures market available for leverage trading via Synthetix Perps.

This market was approved in SIP 2030 with initial configurable values also set in SIP 2030.

Trading Synthetix Perps

Synthetix Perps can be traded on front-ends that integrate with Synthetix liquidity and support perps trading: Kwenta, Polynomial, and dHEDGE.

Please note that Synthetix DAO does not provide any trading front-ends directly and instead relies on third-party user-facing protocols to serve traders. For more information on integrating with Synthetix Perps, please refer to the Synthetix Docs.

New Perpetual Futures Markets

The addition of this new market expands the number of assets available for leverage trading through Synthetix Perps to 52 total assets. Prices will be set by the decentralized off-chain Pyth Network oracle, and fees may vary depending on the asset.

The latest configurable values, including fees, open interest, and more, can be found in SIP 2030. These are configurable governance values and can be changed at any time.