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Partner Volume Rewards for Synthetix Perps Integrators

The Partner Volume Rewards for Synthetix Perps Integrators is a program designed to reward Synthetix integrators who drive volume through the Synthetix protocol.

Partner Volume Rewards for Synthetix Perps Integrators
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Update: This blog post has been revised to include Integrator rewards for the period from May to July 2023.

The Partner Volume Rewards for Synthetix Perps Integrators is a program designed to reward Synthetix integrators who drive volume through the Synthetix protocol. In this blog post, we will discuss the origins of the rewards, provide a breakdown of the tier system, explain how partners are onboarded into the program, and share data from the first two months of implementation.

Background and Motivation

The volume source fee program from SIP-132 does not include Synthetix perps and is limited in its ability to provide an effective and sustainable incentive structure for integrators. With the launch of Synthetix Perps and the eventual proliferation of new financial instruments built on Synthetix V3, the protocol should establish resources and incentives for new partners to integrate Synthetix contracts and promote network activity.

Partner Volume Rewards

The Partner Volume Rewards for Synthetix Perps Integrators is a tiered system for volume rebates paid by the Treasury Council to integrators. The implementation of this volume program establishes discrete tiers of rewards to be distributed to partners based on total activity (defined as fees generated). These fees are paid out by the Synthetix Treasury Council in SNX on a monthly basis.

Tier System

  1. Tier 1 (<$1M fees generated) - 10% Variable Fee Rate
  2. Tier 2 ($1M - $5M fees generated) - 7.5% Variable Fee Rate
  3. Tier 3 (>$5M fees generated) - 5% Variable Fee Rate

The rationale behind this tier system is that uncapped incentives (tier #3) that are directly proportional to volume driven by each partner maintain a cost-effective, sustainable incentive mechanism for the protocol to reward new and existing partners.

Onboarding Partners

Partners are onboarded into the program through a process administered by the Treasury Council. This process involves evaluating the potential partner's integration with Synthetix contracts and their ability to drive network activity.

Implementation Data

The Partner Volume Rewards program for Integrators has been in operation since March 2023.

March 2023 Data

Integrator Fees Generated Payout (SNX)
Kwenta $2.5M 78,000 SNX
Polynomial $10.7K 448 SNX
dHEDGE $978.44 40 SNX
Decentrex $636.72 26 SNX
Conduit $18.63 .7 SNX

April 2023 Data

Integrator Fees Generated Payout (SNX)
Kwenta $1.76M 55,000 SNX
Polynomial $50K 2,095 SNX
dHEDGE $2,643 111 SNX
Decentrex $110 4.6 SNX
Conduit $0 0 SNX

May 2023 Data

Integrator Payout (SNX)
Kwenta 59,000 SNX
Polynomial 1,086 SNX
dHEDGE 8.45 SNX

June 2023 Data

Integrator Payout (SNX)
Kwenta 44,000 SNX
Polynomial 261 SNX
dHEDGE 10 SNX

July 2023 Data

Integrator Payout (SNX)
Kwenta 56,000 SNX
Polynomial 11,000 SNX
dHEDGE 1 SNX

Conclusion

Partner Volume Rewards is a crucial program for incentivizing integrators to drive volume through the Synthetix protocol. By establishing a tiered system of scalable rewards, this program aims to create a sustainable and effective incentive structure for both new and existing partners. As demonstrated by the implementation data, the program has shown promising results in its first two months, rewarding integrators with valuable rewards that can be put to use.

Moving forward, it will be important to monitor the program's continued performance and make adjustments as needed to ensure its long-term success in promoting a thriving ecosystem of Synthetix integrators.