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SNXweave Weekly Recap 128

SNXweave

Mar 6, 2024 • 3 min read

March 6, 2024

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 volume has picked up, but it’s not yet pushing against the limited OI caps, so incentives will be added in the coming weeks for LPs in preparation for OI increases
Asymmetric funding rate SIP is needed for the open interest caps, but SIP-354 is being sent back to the auditor for changes — likely 2–3 weeks away
L1 Perps is expected to finish its second audit as early as this week. Adam asked for clarification if the collateral would be SNX or sUSD, see below for discussion
SIP-362: Transaction Costs based Rewards — Perps V3 — Ecotone presentation recap
SIP-2057: List STX on Synthetix Perps presentation recap
Synthetix listed 3 new markets this week: PENDLE, JUP (Jupiter exchange), and CVX (Convex). STRK from StarkWare is coming later this week 🔜

Spartan Council and SIP updates

Present at the February 28, 2024 Spartan Council Weekly Project Sync:
Spartan Council: Adam, cyberduck, Jackson, Millie, ml_sudo, Snax Frens
Core Contributors: Afif, Ana, Burt, Cavalier, David, Jade, joey, KALEB, meb, Mike

Getting right into it — Andromeda volume has picked up, but it’s not yet pushing against the limited OI caps, so incentives will be added in the coming weeks for LPs in preparation for OI increases. SIP-354 (for the Perps V3 asymmetric funding rate) is a prerequisite for increasing the open interest caps, but the implementation of this SIP needs changes and is therefore being sent back to the auditor. It’s currently on testnet, but with the required modifications it will ultimately be about 2–3 weeks away (and some backend improvement SIPs for integrators will also go out on this release).

Next, the proposal to launch L1 Perps is expected to finish its second audit as early as this week. Adam asked if the collateral would be SNX or sUSD, and Kaleb clarified that there are two types of collateral being discussed: LP collateral, which will be SNX, and trader “collateral” (or margin), which will be ETH and wstETH. The c-ratio will still be 500% and it was explained that this will be a direct import of all the V2 mechanics into V3, with the exception of multicollateral perps margin, which will mitigate the challenges of traders being unable to get that collateral.

There were also a couple of SIP presentations last week, so let’s briefly review them:

SIP-362: Transaction Costs based Rewards — Perps V3 — Ecotone

Presented by Kaleb, this SIP proposes putting a new gas fee logic in place, which will replace the one currently implemented under SIP-356
The new implementation would incorporate the necessary changes in transaction costs associated with Optimism’s Ecotone upgrade
This upgrade is critical to the function of V3 because it directly impacts the core system
V2 will continue to function without this change, but the keeper fee will not update so it eventually needs this upgrade to take full advantage of EIP-4844
A core difference between this implementation and the V2 implementation is: for V3 it will automatically detect Ecotone activation and immediately go into effect.

SIP-2057: List STX on Synthetix Perps

This SIP proposes listing STX on Synthetix Perps
STX is the native token of Stacks, which is the leading Bitcoin L2
Adam again raised a concern about non-ERC Perps listings and what the plan would be if the token ceased to exist
Kaleb explained that the same protections would be in place for this listing, including limited OI caps and the ability to reduce those caps to zero in an emergency
Millie highlighted that EOS, which presents many of the same concerns, has been listed on Perps for a while without any issue

And speaking of new Perps, Synthetix actually listed three new markets this week: PENDLE, JUP (Jupiter exchange), and CVX (Convex). And STRK from StarkWare is coming later this week! 🔜

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SIP/SCCP status tracker:

SIP-354: Perps V3 Asymmetric Funding, Status: approved

SIP-362: Transaction Costs based Rewards — Perps V3 — Ecotone, Status: vote pending

SIP-2057: List STX on Synthetix Perps, Status: vote pending