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 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.