SNXweave Weekly Recap 135

April 24, 2024

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

👉TLDR

• Synthetix Quarterly Report published last week
• Elections: Voting begins today (Wednesday, April 24th) & SNXweave will be hosting the Spartan Council candidate panel tomorrow (Thursday, April 25th). Get your nomination in if you plan to run for SC and would like to join the panel discussion!
• Synthetix Community Governance Call happening today, see agenda below
• Andromeda:👇
• There is currently $17 million in daily perps volume and $550 million in cumulative volume
• LP-backed collateral remains at about $10 million, with caps still at $21 million
• BTC and ETH OI caps are still around $10 million, but now with 20k SNX cumulative burn
• 500k SNX was approved for trading incentives, and the implementation for this is currently being planned
• Migration of L1 SNX to V3 using the V3 legacy market is ready for release and is expected to go out within the next few weeks. SNX currently on V2 will be able to move into the V3 system and will be able to back V2 and V3 simultaneously. Blog post coming soon for this.
• L1 Perps is expected to launch sometime in May, final audit feedback is wrapping up implementation. A sufficient SNX collateral base is required for this launch, so migrating is a prerequisite.
• SIP-377: Add aUSDc (stataUSDc) as a new collateral type to Synthetix V3 on Base presentation recap

Spartan Council and SIP updates

Present at the April 17, 2024 Spartan Council Weekly Project Sync:
Spartan Council: Adam, cyberduck, Jackson, Millie, ml_sudo, Snax Frens
Core Contributors: Afif, Ana, Burt, Cavalier, KALEB, Matt, Mike, Nikita, Steve, troy

FIRST, SNXweave published the Synthetix Quarterly Report last week! Be sure to check it out in our blog to read all about what Synthetix has been up to since the beginning of the year.

And don’t forget that elections are upon us! If you plan to run for Spartan Council, this is a final reminder to get your nominations in by TOMORROW in order to be on the Election Panel — DM @ProofOfCake in the Synthetix Discord to join. Voting starts today!

Don’t forget to also join the Synthetix Community Governance Call today in the Discord, the agenda for the call will be as follows:

• Spartan Council Update
• Synthetix V3 & Perps V3 on Base
• Synthetix V3 & Perps V3 on Ethereum Mainnet
• SNX Staker L1 Migration to V3
• Spot Synth Deprecation & Migration
• V3 Governance
• DAO and Ecosystem Brief:
• Council Updates
• Ecosystem Updates

Now onto our regular updates, starting with an Andromeda update:

• There is currently $17 million in daily perps volume and $550 million in cumulative volume
• LP-backed collateral remains at about $10 million, with caps still at $21 million
• BTC and ETH OI caps are still around $10 million, but now with 20k SNX cumulative burn
• 500k SNX was approved for trading incentives, and the implementation for this is currently being planned

The SIP to migrate L1 SNX to V3 is ready for release and is expected to go out within the next few weeks. SNX currently on V2 will be able to move into the V3 system and will be able to back V2 and V3 simultaneously. There will be a blog post released soon that details the incentives for moving to V3 and how users can do it themselves, so stay tuned!

L1 Perps are also expected to launch sometime in May, as the final audit feedback is wrapping up implementation. A sufficient SNX collateral base is required for this launch, so migrating is a prerequisite.

Lastly, there was a SIP presentation last week, so let’s summarize it:

SIP-377: Add aUSDc (stataUSDc) as a new collateral type to Synthetix V3 on Base

• This SIP outlines a plan to add stataUSDC (static aUSDC) to the Spartan Council Pool on Synthetix V3 on Base
• Matt explained that the primary motivation is that it would allow users to earn lending fees on AAVE and trading rewards from Perps V3
• This would introduce a yield generating collateral option for Perps LPs (which makes LPing more profitable and, as a result, more attractive)
• This would require a vault that users deposit aUSDC into, and that would manage the rebasing token and integrate them as Base LPs
• Maximum LP would be $5 million with a liquidation ratio of 110%
• CCs are in conversation with AAVE on marketing
• Millie called out the fact that this is a different token and questioned how users, expecting USDC, would collect on trading profits if this were backing a substantial portion of the trading activity
• Afif gave some background here, saying there is a potential edge case where a substantial portion of the trader base is in profit and decide to cash out their earnings at the same time
• Rather than forcing LPs to liquidate to absorb this mass profit and withdrawal cycle (again, edge case), it was decided that all the USDC would accumulate in a single pool to be able to accommodate the withdrawals
• Adding a stataUSDC pool might disrupt that safety feature, so Afif recommended limiting the pool to a percentage of the total LP

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SIP/SCCP status tracker:

SIP-306: V3 Migration, Status: approved

SIP-377: Add aUSDc (stataUSDc) as a new collateral type to Synthetix V3 on Base, Status: draft