SNXweave Weekly Recap 118

December 6, 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

Andromeda has been deployed to testnet with the latest version of Perps V3, and is being refined for integrators
L1 Perps audit feedback is almost done being implemented
SC/CCs discussed the new dHedge/Toros pool on Base
SIP-345: SNX Buyback and Burn presentation recap
SIP-350: Implement SNX Token Bridging via Wormhole presentation recap
SIP-2041: List PYTH on Synthetix Perps presentation recap
SIP-2042: List BONK on Synthetix Perps presentation recap
Grants Council update: several retroactive grants were paid out (see below for specifics), team is brainstorming how to help with the V3 Base data, more Watcher Page updates, and looking for a dev for a SIP automerger and debt migration UI.

Spartan Council and SIP updates

Present at the November 29, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Adam, Burt, cyberduck, Genefaesius.eth (Gene), Jackson, Kain, Millie, ML_sudo
Core Contributors: Afif, Bex, Cavalier, David, Jade, jz, KALEB, Matt, meb, Mike, Steve, troy

Andromeda has been deployed to testnet with the latest version of Perps V3, and is being refined for integrators. The audit is wrapping up with small improvements, while the L1 Perps audit feedback is almost done being implemented.

In other discussion, last week Duck asked about the new dHedge/Toros pool on Base. Cav clarified that it will be a vault that automates the process for USDC LPs on Base. Overall, third party staking interfaces are a positive step for the protocol as they help reduce the overhead for Synthetix deployments to additional chains.

Next, there were several SIP presentations last week, so let’s briefly review them:

SIP-345: Buyback and Burn SNX on Base

As discussed in previous recaps, this SIP proposes using 50% of fees earned on Base to buyback and burn SNX — after paying integrators, the remaining fees will be split between Base LPs and SNX stakers
Stakers would receive the rewards via a buyback and burn, and fees would be used to purchase SNX at the current price
The plan is to use a variation of a Yearn contract
The fees will accrue and there will be a permissionless mechanism to sell SNX into the contract
The burning of the fees will be a manual process executed by the Treasury Council
Since Andromeda is an isolated deployment, this was picked as the most elegant solution for returning value to the wider Synthetix ecosystem
Adam asked if the experiment had a specified termination date, and Cav explained that a SIP with a better solution could always supersede this SIP, but this is a very low-overhead way to find out if such a solution is worth dedicating resources to
Gene and Duck requested a bit more detail in the SIP regarding the burn process (specifically, where the SNX will be sent and a request to add the interval at which this will happen). Cav will be adding these details.

SIP-350: Implement SNX Token Bridging via Wormhole

Presented by Evan from Wormhole, this SIP proposes utilizing Wormhole’s Wrapped Token Transfers contracts to facilitate the movement of SNX tokens across multiple chains
This method would also allow users to withdraw SNX without facing mandatory 7-day lock-in periods
Wormhole guardians are able to guarantee transaction finality faster than the optimistic window because they are each running full Optimism nodes
This mechanism could also be used to facilitate buys and burns, or reward distributions to other chains
It would also more easily enable expansion to other chains in the future
This would be a permissionless process and require no code changes (i.e. SNX could be transferred anywhere within the wormhole network and users would receive a wrapped SNX token on the other)
Aakash added that the biggest advantage with this implementation would be the single interface to support bridging across multiple deployments (rather than using the individual bridge solutions developed for each chain that SNX is deployed on)
ML_sudo asked if governor limits (which limit the amount of volume passed through the bridge over a specific time period) could be set for individual tokens:
Wormhole currently has global limits, and the community has voted to make the limits higher for individual tokens in a few cases
There has never been a request to adjust them lower, but they will be taking this request back to their CCs to see if it’s something that could be offered

SIP-2041: List PYTH on Synthetix Perps

SIP proposes listing Pyth Network Token on Synthetix Perps

SIP-2042: List BONK on Synthetix Perps

SIP proposes listing BONK on Synthetix Perps
Adam asked if all the Perps security backstops could handle such a volatile listing — Kaleb answered saying there was already an existing Perp market on Binance to hedge against

Grants Council

Present at the November 30, 2023 Grants Council meeting:
Grants Team: ALEXANDER, CT, MoneyManDoug, synthquest

In Grants Council updates, the team has been discussing how they can help on the V3 Base data. They also paid out several retroactive grants last week: some for automated minting work, Telegram Bot updates, and for open sourcing high-level data analytics and python repos. Synthquest also brought some Watcher page updates to the table for discussion, and the Council is working on finding a dev for a SIP automerger and debt migration UI.

Here are the exact amounts that were paid out for the Retroactive Grants:

Automated Minting: