SNXweave Weekly Recap 114

November 8, 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

The SCCP for the Andromeda configuration is in draft — currently specifies no issuance and 125% liquidation ratio
SC & CCs discussed SIP-345 (buyback and burn SNX on Base) — mechanism is a dutch auction, but another option is a simple contract that holds USDC and can be called by a keeper to execute market (Cavalier will be updating the SIP to reflect this)
Millie voiced opinions about the dutch auction mechanism vs. a contract
Testnet trading competition: improvements that came from the trading comp have all been identified. Sunny is updating the SIP with the changes to be presented again next week.
Grants Council update: GC is discussing grant for a “Treasury Transaction blocking governance module” & have arranged a “Maya Discord Ticketing System Demo” for CC Matt (who will be drawing up requirements for the trial period that the GC will fund). Team is meeting with the creator of Cryptofees, Notifi is up and running, and the NFTs are being processed to the testnet trading comp winners.

Spartan Council and SIP updates

Present at the November 1, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Adam, Burt, cyberduck, Genefaesius.eth (Gene), Jackson, Kain, Millie
Core Contributors: Afif, Cavalier, joey, jz, KALEB, Leo, Matt, meb, troy

We’ve got a quick update for you guys this week — the SCCP for the Andromeda configuration is currently in draft, and there was some discussion last week around getting USDC to Base. Right now, there is plenty of ETH on Base, but not as much USDC. Fortunately, Circle offers cheap bridging through CCTP.

The draft SCCP configuration specifies no issuance and 125% liquidation ratio. Duck questioned whether this was adequate, and Cavalier said there is no borrowing against USDC, so the only way to get liquidated is if the debt-pool is continuously losing against traders. Kain suggested a SIP explaining all of these details since it’s different from what we have in V2.

Duck questioned whether this was adequate, and Cavalier said there is no borrowing against USDC, so the only way to get liquidated is if the debt-pool is continuously losing against traders. Kain suggested a SIP explaining all of these details since it’s different from what we have in V2.

The Council also discussed SIP-345 (buyback and burn SNX on Base), where the mechanism specified in the proposal is a dutch auction. Another option is a simple contract that holds USDC and can be called by a keeper to execute market purchases (to avoid a complicated development) — Cavalier will be updating the SIP to reflect this.

Millie added that a dutch auction would bring SNX liquidity to Base, whereas a contract to market buy SNX may not (with no other incentive for SNX to be on Base to begin with). He also said there might be some more out-of-the-box dutch auction options that other protocols have used in the past that may work for this purpose. Matt chimed in saying that the aerodrome received from the Velodrome airdrop will be used to direct emissions to a Base pool, so there should be enough liquidity to accommodate what will be relatively small buys. This SIP is being presented today.

As a markets update, the improvements that came from the testnet trading competition have all been identified. Sunny is still in the process of updating the SIP with the changes to be presented again next week. Millie also asked how trading would work on Base. All of the stablecoin pairs would be USDC (rather than sUSD), and traders would bring USDC to Base, then wrap it to trade on Perps V3. Profits will be paid out in USDC as well.

Grants Council

Present at the November 2, 2023 Grants Council meeting:
Grants Team: CT, MoneyManDoug

In Grants Council updates, CT has arranged a briefing session for a Grant application that proposes a “Treasury Transaction blocking governance module.” He has also arranged a “Maya Discord Ticketing System Demo” for CC Matt, who will be drawing up requirements for the trial period that the GC will fund.

The team is also meeting with the creator of Cryptofees to see if it is viable for the Grants Council to take over funding the maintenance and growth of the site, with a focus on promoting Synthetix. There is still some discussion going on here, but it seems like the cost might be too high in comparison to the ROI.

Lastly, don’t forget to check out Notifi, the Grants Council’s newest sponsorship that allows you to receive instant alerts about your staking positions, protocol updates, and other essential reminders. And if you participated in the testnet trading competition and made it on the leaderboard, the GC is processing the NFT winners now!

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SIP/SCCP status tracker:

SIP-345: Buyback and burn SNX on Base, Status: draft