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SNXweave Weekly Recap 107

SNXweave

Sep 20, 2023 • 5 min read

September 20, 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.

👉TLDR

stETH/ETH, ZRX, and UMA perpetual futures markets were added to Synthetix Perps
V3: The third major upgrade to the core system was released (SIPs 323, 326, and 331–335). CCs are working on building a cross-chain pool synthesis proof of concept using cross-chain read oracle ERC-7412
Perps V3: SIP is still in draft, but the fixes from the second audit report are being finalized.
Testnet trading competition to start next week, and will likely run for several weeks
L1 Perps audit is in progress — protocols like Ethena have expressed interest
Debt migration was discussed further by SC & CCs — was ultimately deemed not a top priority right now
V3 migration will follow a similar progression to the Perps V2 rollout — plan is to launch to Mainnet with tight OI caps to watch the performance with real trades. Earliest possible full-scale launch sometime in November or December.
SC & CCs discussed plans to incentivize stakers to make the move to V3
The updated election system code is being finalized for audit, and the SIP for the Cross-chain Election Module (V3GM) is being drafted
SCCP-305: BetSwirl — Create Pool and register Market presentation recap
SCCP-306: Create the Kwenta Pool presentation recap
Grants Council update: Investigating adding default Github account to SIP submission UI for those without an account, V3 stats page version 0.1 will be started soon, NFT lore writer payment being processed, Sunny to help deploy NFT website, Governance Guide Doc to be updated with each Council’s “Mandate” (working to get TC & SC to sign off on theirs), planning to migrate Perps Landing page data/info to Watcher page, V3 Overtime Markets specs about to be finalized — then development can begin

Spartan Council and SIP updates

Present at the September 13, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Adam, Cyberduck, Genefaesius.eth (Gene), Millie, and ML_sudo
Core Contributors: Afif, KALEB, noah, Noisekit

First up, Synthetix has just announced the addition of stETH/ETH, ZRX, and UMA perpetual futures markets, all now available for leverage trading via Synthetix Perps!

For V3, the third major upgrade to the core system was released, including SIPs 323, 326, and 331 through 335. Noah is in the process of updating the docs to reflect these changes. The team is now working on building a cross-chain pool synthesis proof of concept using cross-chain read oracle ERC-7412.

A big part of this effort was laying out the standard in ERC-7412 to allow CCs to start building to that standard for all oracle data consumption (price feeds, cross chain reads, etc.). This is supplementary to CCIP, which enables protocols to call functions on other chains (whereas ERC-7412 allows an oracle to read the value of a function on another chain and report back). Basically, CCIP is a way to write across chains, and V3 needed a way to read across chains. This initiative is the next big priority after Perps V3.

And speaking of Perps V3, the SIP is still in draft and fixes from the second audit report are being finalized. The testnet trading competition is scheduled to start next week and will likely run for several weeks. Partners are also developing front-ends for the competition, as well as finalizing ERC-7412 support before full completion. The L1 Perps audit is also in progress, and protocols like Ethena (a dollar-pegged stablecoin) have expressed interest in using this.

In other discussion, SIP-237 for the L1 to L2 debt migration was discussed by the SC and CCs last week. It was brought up again that there is still no UI for debt migration, and that SIP-237 just solves the problem of migrating debt positions from Ethereum Mainnet to Optimism.

Noah suggested that it might be more valuable to explore front end needs once it’s clear where the liquidity in V3 is needed the most. The contract can be called in Etherscan, and it’s possible that the few users who want to make use of this feature could do so without a UI. However, it’s estimated that 60–70% of the SNX on L1 is in Gnosis Safes, which are not supported by SIP-237. The consensus was that this is not a top priority right now.

But while we’re on the topic of migration, the SC and CCs also discussed the V3 migration (SIP-306). Following a similar progression to the Perps V2 rollout, the plan would be to launch to Mainnet with tight OI caps to watch the performance with real trades. This would put the earliest possible full-scale launch sometime in November or December.

With that in mind, Afif suggested it may be time to start thinking about a plan to incentivize stakers to make the move to V3. Part of this is likely to be a winding down of inflation rewards on V2, which will make V3 more attractive. Migrating the Treasury alone should be enough to sufficiently bootstrap liquidity at launch.

For a governance update, the team is finalizing the updated election system code for audit, and the SIP for the Cross-chain Election Module (V3GM) is being drafted. There were also two SCCPs presented last week, so let’s briefly review them.

SCCP-305: BetSwirl — Create Pool and register Market

This SCCP was presented by Romauld, who met Cav at ETHCC
He presented on behalf of BetSwirl, which is an online gambling platform
BetSwirl is exploring ways to add house liquidity to their platform, and has generated $32 million in wagered volume and $990k in annualized fees
This SCCP proposes creating a pool that LPs could delegate to in order to earn yield
They plan to launch on Ethereum with this liquidity infusion
In order to be competitive with other online gambling platforms, the team would like to be able to offer bigger payouts to winners
SNX LPs would be able to elect to delegate to this pool, and there would be no direct exposure to the Synthetix protocol

SCCP-306: Create the Kwenta Pool

This SCCP was presented by Jeremy and would create a Kwenta Pool on Synthetix V3
Kwenta would like to put all of the SNX they receive from the volume program back into this pool
Long-term, they want to direct Kwenta perps to that pool instead of the SC pool
There was a question as to whether SNX allocated to non-SC pools would have voting power, but this was not answered on the call

Both of these SCCPs are still in draft.

Grants Council

Present at the September 14, 2023 Grants Council meeting:
Grants Team: CT, MoneyManDoug, synthquest

In Grants Council updates, the team is investigating possibly adding a default Github account to the SIP submission UI for people who don’t have a Github account. Also, the V3 stats page version 0.1 will be started with the devs soon, as they are just finishing their current project first. And the NFT lore writer payment is being processed, while the GC works with Sunny to help them deploy the NFT website.

The Governance Guide Doc that they’re working on is going well, they recently decided to add a “mandate” for each Council — resources have been allocated to help write TC and SC mandates and get them to sign off on them. The team is also planning on migrating the Perps Landing page data and info on the Watcher page — they actually have two separate teams working on the upgrades to the Watcher page at the moment. Lastly, the V3 Overtime Markets specs are about to be finalized, then the GC will get to work on the development!

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SIP/SCCP status tracker:

SIP-323: Adopt “s” prefix for Synthetix V3 asset tickers, Status: approved

SIP-326: Additional pool configuration, Status: implemented

SIP-331: Adding view function to retrieve market address by market ID, Status: approved

SIP-332: Mint and Burn with Account Balance, Status: implemented

SIP-333: Pool Collateral Caps, Status: implemented

SIP-334: Add Optional Bytes Field for Oracle Manager Requests, Status: implemented

SIP-335: Allow revoking ERC20 approvals, Status: implemented

SIP-337: Perps V3, Status: draft

SIP-306: V3 Migration, Status: implemented

SCCP-305: BetSwirl — Create Pool and register Market, Status: draft

SCCP-306: Create the Kwenta Pool, Status: draft