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:
- Debt Shares (SDS): All debt shares are moved from L1 to L2.
- Unstaked Balance (SNX): Complete SNX balance is migrated.
- 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.
If you have any questions or comments, join the conversation on Discord.