SNXweave Weekly Recap 129

March 13, 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

• V3 listing supermarket discussion: Burt asked which assets are appropriate for listing within supermarkets vs. which assets should be listed out of the supermarkets & wondered if it would be confusing to keep track of multiple cross-margin accounts across several supermarkets ⬇️
• It was clarified that there would be just one supermarket in the main SC pool where cross-margin would be allowed, and other listings could be added to the SC pool outside of that supermarket, so they would trade as completely isolated markets backed by the SC pool (this would match centralized exchange UX).
• Afif cautioned against adding riskier assets to the supermarket and suggested a periodic liquidity review to determine whether any listings in the supermarket should be switched to isolated markets
• Kain also brought up the possibility of creating a liquidity-monitoring dashboard that would allow the SC to stay up-to-date on the market conditions
• SIP-365: Remove Core Fee Switch presentation recap
• SIP-366: Asynchronous Delegation presentation recap
• SIP-360: Synthetix V3 Cross-chain Elections System presentation recap
• SIP-341: Add Configurer Address presentation recap
• SIP-361: Perps V3 — Integrator & CC Requests presentation recap

Spartan Council and SIP updates

Present at the March 6, 2024 Spartan Council Weekly Project Sync:
Spartan Council: bilby, Kain, Millie, ml_sudo, Snax Frens
Core Contributors: Afif, Ana, Burt, Cavalier, David, joey, jz, KALEB, Matt, meb, Mike, noah, Steve, sunny, troy

Burt started off the discussion last week by asking how the Spartan Council intends to approach listings in V3 based on the new “supermarket” mechanism (i.e. which assets are appropriate for listing within supermarkets vs. which assets should be listed out of the supermarkets).

Burt mentioned that, from a user perspective, it might become confusing to keep track of multiple cross-margin accounts across several supermarkets, each with their own set of assets. It was clarified that there would be just one supermarket in the main SC pool where cross-margin would be allowed, and other listings could be added to the SC pool outside of that supermarket, so they would trade as completely isolated markets backed by the SC pool (this would match centralized exchange UX). Later, a completely separate supermarket outside of the SC pool could be added for more aggressive long-tail asset listings.

Afif also cautioned against adding riskier assets to the supermarket and suggested a periodic liquidity review to determine whether any listings in the supermarket should be switched to isolated markets. This switch would entail opening a new isolated market and setting the market for that listing within the supermarket to close-only. It was suggested that a quantitative list of criteria be formulated in a SIP to determine what assets are eligible for supermarket listing. Kain also brought up the possibility of creating a liquidity-monitoring dashboard that would allow the SC to stay up-to-date on the market conditions.

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

SIP-365: Remove Core Fee Switch

• Presented by Noah, this SIP proposes removing the core fee capture mechanism that was implemented in SIP-319 in favor of market-level fee capture
• The existing mechanism works well for spot markets, but is less suitable for Perps markets since it would assess fees on the deposit and withdrawal of margin
• Since the fee capture occurs at the market implementation, this SIP proposes removing the core fee rather than adding governance configuration variables

SIP-366: Asynchronous Delegation

• This SIP is an improvement on SIP-320 and seeks to eliminate the possible LP attack vectors
• SIP-320 proposed a minimum delegation duration, but even with that mechanism it was still possible to benefit from timely delegation/undelegation of collateral
• This SIP proposes adding a market-determined delay on either direction depending on whether the delegated collateral is increasing or decreasing to make the delegation asynchronous
• This is similar to the order settlement asynchrony that was added to eliminate frontrunning attack vectors
• This is a switch that can be turned on or off on a per market basis depending on whether adversarial LP dynamics are a concern

SIP-360: Synthetix V3 Cross-chain Elections System

• This SIP proposes a new system for facilitating on-chain elections
• Better cross-chain technology has been released since the original design and release of the V3 governance module, so this proposes incorporating some of this new tech to reduce reliance on Merkle trees and create a more modular election system
• Critically, it will add flexibility to calculate voting power from V2 and V3

SIP-341: Add Configurer Address

• This proposes adding a configurer address that would be able to execute SCCPs, which is a first step towards the goal of on-chain governance
• The NFTs issued by the governance module following elections would plug into this address, rather than the owner address, to reduce protocol risk

SIP-361: Perps V3 — Integrator & CC Requests

• Kaleb presented this last SIP, which proposes a number of quality improvements suggested by CCs and integrators

These improvements include:

• Drop the getReportedDebt from the event emitted upon withdrawing sUSD from a given perp market (this will reduce cost for users)
• Incorporate a getOpenPositionSize that returns the size of an open position when given a market ID and account number as input
• Emit an event when an account is flagged for liquidation (requested by Kwenta so they have documentation of when users are liquidated)
• Incorporate a view function that returns the settlement keeping costs plus the settlement reward (requested by Polynomial for reporting in their UI)
• Require a strict staleness tolerance on margin withdrawal (price freshness required for withdrawal — 30 seconds)
• Incorporate a required margin for order when given an execution price (required for limit orders & requested by Kwenta)
• Incorporate a secondary cap on open interest denominated in USD (necessary to maintain OI caps during rapid price increases to protect the protocol)
• Remove the minimum keeping fees from getRequiredAccountMargins function (this is a bug fix)

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SIP/SCCP status tracker:

SIP-365: Remove Core Fee Switch, Status: approved

SIP-366: Asynchronous Delegation, Status: approved

SIP-360: Synthetix V3 Cross-chain Elections System, Status: approved

SIP-341: Add Configurer Address, Status: draft

SIP-361: Perps V3 — Integrator & CC Requests, Status: approved