October 25, 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.
- Testnet trading competition is complete and has led to several product improvement ideas
- Cross-chain Election Module is nearing completion and a testnet release
- L1 Perps is moving through audit
- Work is continuing on the front-end decentralization
- SC & CCs discussed Kain’s recent blog post: some potential scaling paths for Synthetix where he proposed a few experimental deployments. Read below for more details
- Integrator fee discussion: current proposed fee is 20%, with 15% in sUSD and the remaining 5% in SNX or commitment to buy SNX. Read below for more details
- SIP-342: Add missing view functions to access current configurations and state presentation recap
- SIP-343: Add extra fields to existing Market Events to track market debt changes presentation recap
- SIP-2036: Revert Inflation Mint on L2 Distribution Failure presentation recap
- Grants Council update: NFT mint is live, Governance Guide has been published, and V3 Stats Watcher Page is complete
Spartan Council and SIP updates
Present at the October 18, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Adam, Burt, cyberduck, Genefaesius.eth (Gene), Jackson, Kain, Millie, ml_sudo
Core Contributors: Afif, KALEB, Matt, Mike, noah, Noisekit, sunny, troy
First up, the testnet trading competition, which has led to several product improvement ideas, just finished up a couple of days ago. The Core Contributors (CCs) have identified minor updates for the trusted multicall forwarder and the way that price staleness tolerances work. Pyth is actually rolling out an update that will allow for the removal of price optionality from order settlement. The CCs expect there to be enough time for these changes to be made before the Mainnet alpha release.
Next, the Cross-chain Election Module is nearing completion and a testnet release — the CCs are on track to have the code returned to auditors this week. The focus will then shift back to core updates once this is completed.
While L1 Perps moves through audit, work is continuing on the front-end decentralization (the only remaining centralized dependency is a simple educational page hosted on Github).
In other discussion, the council talked about the blog post that Kain recently published, where he discusses some potential scaling paths for Synthetix. He proposed a number of experimental deployments to multiple chains of Synthetix V3 and Perps V3, plus USDC collateral and ETH collateral (and calls this the Andromeda Release/Deployment).
Duck said that he is skeptical of adding another collateral type on Base, but is warming up to the idea of using Base as a sandbox to test different ideas since it’s totally siloed from Optimism. Kain added that Base has a very strong alignment with USDC and, even if this only ends up being exclusively offered on Base, it could produce benefit for the protocol. If it turns out that there is limited demand for USDC LPs, it would be beneficial to figure that out early on (and if demand is strong, offering it elsewhere should be strongly considered).
Experiment 1 (Synthetix V3 + Perps V3 + ETH Collateral), which suggests adding USDC, is already planned for the Base deployment. The reason for this is to gauge demand for LPs offering up different collateral. The proposal sets an initial fee share at 50% for LPs and 50% for SNX stakers (via a buyback and burn mechanism on Base). It further suggests deploying Andromeda to Optimism and Arbitrum, and deploying Carina (ETH-only backed Perps) to Ethereum Mainnet.
If all of the experimental deployments achieve the desired result, the final experiment would be to create an SNX chain, which would be the home for Synthetix governance and allow SNX holders to borrow against their collateral.
Next, the SC and CCs discussed the integrator fee topic, as Burt is in the process of fleshing out the details on the newly proposed fee (which is currently proposed at 20%, with 15% in sUSD and the remaining 5% in SNX or commitment to buy SNX). Kain brought up the fact that Base is a great opportunity to test this fee share structure out as well (20% to integrators, 40% to LPs, and 40% to stakers). Millie suggested that Burt keep the SIP strictly to items that can be accomplished via code changes and settle any of the other parameters with the Treasury Council.
There were also a few SIPs presented last week, so let’s briefly review them:
SIP-342: Add missing view functions to access current configurations and state
- Presented by Noisekit, this SIP proposes adding a few missing view functions to read current state to be used in UI, tests and other scripts
- The first is to get available rewards data from the rewards manager
- The second is to get pool collateral configuration
- Retrieving this data without these functions is cumbersome, so this is primarily an improvement that will benefit frontends
SIP-343: Add extra fields to existing Market Events to track market debt changes
- In order to facilitate market’s debt tracking over time, this proposal targets extending existing market events in the Synthetix core system
- Noisekit explained that the calculation can be made based on other data that is already available, so this SIP essentially adds an additional field to track debt
- This will allow market performance to be more efficiently tracked over time
Both of these SIPs are the result of feedback received during the implementation of V3.
SIP-2036: Revert Inflation Mint on L2 Distribution Failure
- Lastly, Kaleb presented this SIP which proposes incorporating a reversion into the weekly inflation mint, if the weekly distribution to L2 stakers fails
- There was an issue last week with the inflation distribution (there wasn’t enough gas to execute the distribution to L2 so the minted SNX stayed on L1)
- This SIP would add a single line of code that would revert the transaction if it wasn’t executed as planned
- This will therefore force the keeper to boost the gas in order to process the transaction and collect the fee
All three of these SIPs have been approved with 8 votes in favor.
Present at the October 19, 2023 Grants Council meeting:
Grants Team: ALEXANDER, CT, MoneyManDoug, sunny, synthquest
Lastly, in Grants Council updates, the NFT mint is live!! And working QUITE well. There are over 7,000 whitelisted accounts that can mint — one mint per account and it’s FREE. Once you’ve minted and the NFT is not showing in OpenSea, use “Refresh metadata” and savor your new Spartan Synthverse NFT.
The GC’s Governance Guide has also been posted to their Medium page, so be sure to check it out for a lot of great information about Synthetix Governance, including proposals, Council mandates, and more.
The V3 Watcher Stats page is also officially complete, so check that out for all of your stats needs!
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SIP/SCCP status tracker:
SIP-342: Add missing view functions to access current configurations and state, Status: approved
SIP-343: Add extra fields to existing Market Events to track market debt changes, Status: approved
SIP-2036: Revert Inflation Mint on L2 Distribution Failure, Status: approved