perps v3

USDC & SNX LP Incentives on Base

Synthetix is launching USDC and SNX incentive programs on Base to boost liquidity provider collateral, which is crucial for expanding Synthetix V3 and Synthetix Perps V3 open interest and supported markets.

Synthetix

05 May 2024 • 2 min read

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Update: Gauntlet has increased the USDC incentive amount from $50,000 to $250,000 per month, starting from May 5th. The increased incentives will run for an additional month. SNX incentives remain unchanged at 20k SNX per week.

Synthetix is launching USDC and SNX incentive programs on Base to boost liquidity provider collateral, which is crucial for expanding Synthetix V3 and Perps V3 open interest and supported markets.

USDC Incentives

The Synthetix Treasury, in partnership with Gauntlet, will allocate $50,000 in monthly USDC incentives to boost the Synthetix V3 Pool on Base. These incentives will be distributed proportionally monthly to liquidity providers who deposit USDC into the Synthetix V3 liquidity app via the Spartan Council Pool.

Following this period, the incentives may be renewed or increased based on performance.

SNX Incentives

The Synthetix Treasury, detailed in STP-14, will allocate 225,000 SNX over 10 weeks to incentivize USDC deposits on Base Andromeda. These incentives will be distributed to attract USDC deposits to the Spartan Council Pool. Liquidity providers can earn a share of these rewards by depositing USDC into the Synthetix V3 liquidity app.

The incentives will be distributed by the Synthetix V3 rewards distributor, with proportional allocation over the ten-week period:

Week 0: One-time distribution of 25,000 SNX to existing LPs as compensation for early trading losses during alpha testing
Weeks 1-10: 20,000 SNX distributed weekly

Depending on the program's success, it may be adjusted or extended, as determined by the treasury council.

Providing Liquidity

To provide liquidity, earn fees, and receive USDC/SNX LP incentives on the Base deployment:

Go to https://liquidity.synthetix.eth.limo/
Follow the V3 Base LP Guide to deposit USDC collateral

In V3, user rewards are based on the amount supplied by collateral. Currently, users can only deposit USDC to earn fees without minting stablecoins. Additionally, users cannot withdraw collateral & rewards for 24 hours following deposit.

Scaling Synthetix on Base

The Synthetix Spartan Council pool will use supplied USDC to provide liquidity to Synthetix Perps markets on Base.

Increased USDC collateral will allow Synthetix to support more perps markets and open interest. Every $1 of liquidity provider capital enables Synthetix Perps to support $4 of major cryptocurrency open interest or $2 of longer-tail cryptocurrencies.

Decisions to increase liquidity provider caps, open interest caps, and introduce new markets are subject to approval by governance.

Trading Synthetix Perps

As of April 4th, 2024, the following partners are integrated into Synthetix Perps on Base:

Kwenta - Live for public trading - Base V3
Polynomial - NFT Gated Access - Visit the Polynomial Discord
Infinex - Private Beta - Visit the Infinex Discord

Any Questions?

Join the Synthetix Discord for any questions or concerns.