SNXweave Weekly Recap 78

March 1, 2023

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.

Spartan Council and SIP updates

Present at the February 22, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Cavalier, Jackson, KALEB, SeliniCapital (representing Jordi), TerraBellus, William87
Core Contributors: Afif, Ana, Bex, Darius, David, db, joey, Matt, meb, Mike, Nikita, noah, Rafa, sunny

We’ve got a V3 update for you guys: the initial deployment is live!! The core system is up and can accept collateral to issue the new stablecoin. Legacy market is ready for audit but a decision needs to be made on how liquidations will be handled during the transition to V3 since there is a risk of fragmenting liquidity. The V3 spot market is also in audit, so resources are now being shifted towards developing Perps V3.

This is just the first stage/milestone, of course, as there will be a few more steps before stakers can actually migrate over. The plan is to wait for V3 markets before beginning the migration process for stakers. The next key step will be spot markets being released to Mainnet in V3.

Currently, only SNX will be enabled as collateral for V3 (essentially trying to mirror exactly what is currently available in V2). And it would be a relatively quick change to be able to allow other collateral types, pending governance.

And for a quick V2 update, Debt Migration is 90–95% complete and should be ready for audit this week. There is a bit of backlog with the auditors right now because of all the V3 audits, but this should be the last major update for V2.

The team is also working on what should be the final release for Perps V2, and several of the CCs are at ETHDenver this week where they have begun talking about Perps V3.

There were also a couple of SIP presentations last week, so let’s briefly review them:

SIP-2006: Lyra Direct Integration

• Presented by Kaleb, this SIP proposes adding exchange done by the Lyra protocol to the Direct Integration Manager, which lowers the exchange fee to 10 bp (on sETH and sBTC) and disables dynamic fees
• Kaleb explained that this should have been done when the direct integration SIP was launched, but Lyra’s contracts had to be updated to accommodate direct integrations
• This should drive more volume through Synthetix without having to increase the fee rebate from the Treasury Council to Lyra
• Lyra is also trying to integrate Perps markets within the next couple months, which will be more capital efficient

SIP-2005: Perps V2 — Slippage protection for liquidations

• This SIP proposes incorporating slippage guards on liquidation transactions. This is done by splitting up the liquidation process into two components: 1) Flagging, where accounts flagged cannot interact with their positions until liquidation is enacted, and 2) Liquidation, where the liquidation is incorporated into the protocol via spontaneous liquidation or forced liquidation
• Liquidation of large positions creates an opportunity for traders to position themselves ahead of a liquidation and potentially profit from the resulting price impact
• Kaleb explained that 2005 proposes certain measures to prevent opportunistic ordering of transactions surrounding liquidations
• The SIP also proposes endorsing specific accounts that could perform forced liquidations with the wellbeing of the protocol in mind. However, liquidators would not receive a reward for this type of liquidation
• Terra asked if Kaleb would be willing to include the selection process for endorsed liquidators in the SIP, and he said they can specify Spartan Council approval of liquidators via SCCP (which they will update accordingly)

Grants Council

Present at the February 23, 2023 Grants Council meeting:
Grants Team: Alexander, Ana, CT, JVK, synthquest

In Grants Council updates, the team discussed some topics surrounding their NFT project including the lore, file rename, and testnet statuses.

For the stats page, the Council has been seeking approval of staking refinement and budget to improve accuracy of stats on this site long term. Gunboats is deploying sUSD burn stats, and feedback was given to the CCs to hopefully include a link to historical/accounting data for users, which is currently missing from the V2 dApp.

They are also working on getting the Perps V2 funding rate bots for Discord and Twitter built, which was just approved.

Ambassador Council

Present at the February 22, 2023 Ambassador Council meeting:
Ambassadors: GUNBOATs, Kevin, Mastermojo, Matt

In Ambassador updates, the team actually had a meeting with the Grants Council last week where the Grants guys gave them a rundown on their current projects, and both Councils discussed ways to help each other. They agreed to do this every new epoch and more frequently from now on.

The Ambassadors also discussed Spartan Spaces, and Matt updated the YouTube channel.

For their governance updates from last week, the team has a Euler proposal live that asks them to deploy on Optimism, and a Hop proposal was recently submitted, which Matt discussed with Hop protocol on their most recent governance call. The Council also created a LEAP for Lyra to implement Synthetix Perps V2.

Lastly, in external protocol updates, the Ambassadors found a protocol to integrate with through Optimism Governance: Mux Protocol. After initial discussions in Discord, they are now currently talking to the devs to finish integrating with Synthetix.

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SIP/SCCP status tracker:

SIP-2006: Lyra Direct Integration, Status: approved

SIP-2005: Perps V2 — Slippage protection for liquidations, Status: approved