November 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.
- Deploy Synthetix V3 Core on Base: testing on Base Goerli is pending SCCP confirmation with some possible parameters: collateral caps (start small and gradually increase LP and OI caps to allow low-risk monitoring of live data), c-ratio on different collateral types (will likely start between 125–150%), wrapper fee (likely no fee to begin with)
- Testnet trading competition: report has been published with full breakdown of the competition — nearly $2.7 billion was traded, with over 2,200 trades being executed and 133 unique traders
- Integrator fee share topic: integrator feedback inquired as to whether there would be a different proposal for different networks and why
- SIP-2037: List MNT, IMX amd TRB on Synthetix Perps presentation recap
- SIP-2038: List wstETH on Synthetix Perps presentation recap
- Notifi: Synthetix just announced a new integration with Notifi, a leading provider of DeFi alerts that brings real-time notifications to users — read below for how to utilize this tool. Shout out to the Grants Council for funding this!
Spartan Council and SIP updates
Present at the October 25, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Burt, cyberduck, Genefaesius.eth (Gene), Jackson, Millie, ml_sudo
Core Contributors: Bex, Cavalier, jz, KALEB, Matt, Steve, sunny, troy
As a core system update, the SC and CCs discussed SIP-336, which will deploy Synthetix V3 to Base. Testing on Base Goerli is pending SCCP confirmation, with these possible parameters:
- Since this will be the first mainnet deployment of V3, the plan will be to start small and gradually increase LP and OI caps to allow low-risk monitoring of live data
- There is a delicate balance between trading activity and liquidity, however
- Too little liquidity will restrict OI caps, but too much liquidty (and not enough traders) will dilute yield for LPs
C-ratio on different collateral types
- Discussion started at somewhere between 125–150%
- Draft will specify 150% c-ratio with liquidations at 120% (further discussion is necessary)
- There was some consensus that there shouldn’t be any fee to begin with (which would help to build liquidity for trading)
ML_sudo also asked how success would be measured in general. From the LP side, a successful deployment would be measured by how much interest there is in liquidity-providing. Whereas on the trader side, a number of metrics would be need to be considered, but performance could be pretty clearly assessed based on comparisons with the Optimism Perps product.
ML suggested a twice weekly update or dashboard so that the CCs and SC can closely monitor the performance of the deployment. Troy said something along these lines is already in the works and has been requested already for the Base deployment. Initially, it would just be an internal resource, but could eventually develop into something that could be shared publicly.
Next, the testnet trading competition report is out — check out the full breakdown here! As detailed in the roundup, traders received part of a total prize pool of $15,000 worth of SNX, 15 KWENTA tokens, and exclusive NFTs thanks to the Synthetix Grants Council. And along with the primary trading competition, participants were also encouraged to report bugs and glitches, which led to improvements in Perps V3 contracts and integrator frontends. Most of these changes are minor, such as improvements around liquidation keeper costs, and are expected to be completed by next week.
Nearly $2.7 billion was traded throughout the competition, with over 2,200 trades being executed and 133 unique traders. Overal the trading competition was a great success, so congrats to the traders who made it on the leaderboard and thanks to everyone who participated!
In other discussion, for the integrator fee share topic, one of the biggest feedback items from integrators was if there would be a different proposal for different networks and why. Optimism is currently the only/biggest volume source (and therefore the only fee generator), so leaving it out of the fee discussion may not be a full step forward.
Millie suggested that the differentiator here is V3 vs. V2 deployments — he agreed that the fee should also apply to Optimism once the V3 migration happens on Optimism. Base deployment is sort of a pre-requisite for a final migration plan for V3 on Optimism, as it will likely provide useful information about collateral types on V3.
There were also a couple of SIP presentations last week, so let’s briefly review them:
SIP-2037: List MNT, IMX amd TRB on Synthetix Perps
- GUNBOATs presented this proposal, which seeks to list Mantle, Immutable X and Tellor Tributes tokens on Synthetix Perps
- Pretty straightforward SIP here — these are being proposed based on trading volume
SIP-2038: List wstETH on Synthetix Perps
- Also presented by GUNBOATs, this is a proposal to list Wrapped Staked Ether from Lido futures on Synthetix Perps
- This market has been requested by Pyth and Lido as a way to hedge wstETH on chain
- Gene called attention to the fact that the stETH offering doesn’t seem to be seeing much demand
- Kaleb identified the potential for traders to frontfun the rebase mechanism
Still waiting on the oracle feeds for these SIPs, so more to come soon.
Lastly, Synthetix just announced a new integration with Notifi, a leading provider of DeFi alerts that brings real-time notifications to users. With Notifi you can now receive instant alerts about your staking positions, protocol updates, and other essential reminders. These alerts can be enabled directly within the staking UI using the bell icon.
It’s super easy to set this up — just look for the notification bell on the Synthetix Staking UI once you’ve connected your wallet, and click on it to select and activate the alerts of your choice. Types of alerts include Synthetix announcements, liquidation warning and confirmation, account snapshots, claim reward reminders, governance updates, and c-ratio health alerts. And these can be received on Discord, Telegram, and email.
The Grants Council funded this initiative, so shout out to them for their help in improving the staking experience. Go check out Notifi!
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SIP/SCCP status tracker:
SIP-336: Deploy Synthetix V3 Core on Base, Status: approved
SIP-2037: List MNT, IMX amd TRB on Synthetix Perps, Status: draft
SIP-2038: List wstETH on Synthetix Perps, Status: draft