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SNXweave Weekly Recap 130

SNXweave

Mar 20, 2024 • 5 min read

March 20, 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

SIP-364: Reconfigure Grants Council presentation recap
SIP-353: Improve Protocol Coordination presentation recap
SIP-367: Synthetix V3 Deployment to Arbitrum presentation recap
SIP-2059: Legacy Spot Synth Migration presentation recap
SIP-363: List SNX, SOL, and WIF on Perps V3 on Base presentation recap
SIP-368: Preemptive Approval for Listing W Token on Perps V3 on Base presentation recap
Grants Council update: Synthquest is working with a dev to get final comments and issues fixed for the Watcher page. Arbitrage bot dev said the early numbers are looking really promising for automated cex/dex arbitrage trades — they are aiming to have a draft of this complete by the end of the governance epoch. A beta version of the position monitor was also finished, which aims to ensure positions won’t get near liquidation.
Ambassador Council update: AC hosted a Spartan Space last week with Pyth, and another Ambassador Governance Update is coming soon on Twitter.

Spartan Council and SIP updates

Present at the March 13, 2024 Spartan Council Weekly Project Sync:
Spartan Council: Adam, bilby, cyberduck, Jackson, Kain, Millie, ml_sudo, Snax Frens
Core Contributors: Afif, Burt, Cavalier, David, Jade, joey, jz, KALEB, Matt, meb, Mike, Steve, troy

Last week was a big week for SIP presentations, with 6 being presented to the Spartan Council. Let’s review each of these proposals:

SIP-364: Reconfigure Grants Council

Mike presented this SIP, which proposes reconfiguring the Grants Council so that it can more efficiently serve the present and future needs of the protocol
The primary change would be to eliminate the Grants Council as an elected body and replace it with a single appointed technical lead who will onboard 2 supporting positions to make up a 2 of 3 multisig
Mike’s rationale for this SIP was that the number of inbound, high-quality grant requests is currently insufficient to justify a Grants Council the way it is currently set up, and that this reconfiguration would allow the new team to take a more proactive role in supporting protocol needs
Ideally, this position would be assigned before the end of the epoch so that they can coordinate with the outgoing GC on any ongoing projects
Kaleb and Kain commented that the selection process and criteria should be specified in the SIP
Though this position would be subject to reassignment every epoch, the goal is to bring more stability to grant funding
The ideal candidate would therefore be someone who can take on these duties on a longer-term basis
Kaleb commented that compensation should be mentioned in the SIP as well
Adam also requested that the expected deliverables for this role be specified
After some discussion, there seemed to be consensus that this should be a full-time position

SIP-353: Improve Protocol Coordination

This proposal aims to improve development coordination within the Synthetix protocol, ensuring that decentralization does not lead to disorganization
Cav explained that this SIP would eliminate the Core Contributor Committee, in its current configuration as a representative body elected by CCs, and replace it with a single position appointed by the SC
The primary objective is to improve accountability and coordination between governance bodies, who will determine the roadmap (SC), allocate funding (TC), and execute the roadmap (CCs)
This position will take complete ownership of the protocol roadmap, under the direction of the SC
This will likely be a current CC who is appointed by the SC, rather than an external candidate
Duck suggested coordinating with Mike on adding selection process/criteria and replacement process language to the SIP for clarity
The position would have to be reconfirmed every 6 months

SIP-367: Synthetix V3 Deployment to Arbitrum

Building on all of the knowledge acquired from the deployment to Base, this SIP proposes to continue expanding the chains that Synthetix is on by deploying to Arbitrum
Rather than waiting to deploy to Arbitrum after the Base deployment is scaled, this SIP would deploy V3 to Arbitrum ASAP to allow for LP collateral to build organically, and both deployments could then be scaled concurrently
The Arbitrum deployment will experiment with the usage of additional collateral types, including ETH, USDC, DAI, and ARB
Part of this effort will include a grant application to receive some initial funding from Arbitrum’s Long Term Incentives Pilot (LTIP) program
This funding, if awarded, would be used to provide LP and trading incentives, as well as support the stablecoin (that LPs will be able to mint)
There were some questions as to whether the stablecoin was necessary and if it adds any value to the product. Most of the SC initially voiced support for leaving the stablecoin out of the initial deployment, but agreed it might be valuable to have after some follow up discussion in discord after the call.

SIP-2059: Legacy Spot Synth Migration

Presented by Kaleb, this proposal will add a rebasing mechanism to balance the debt pool skew on L1 and prepare for the transition of spot synths to V3
This would be accomplished by levying a funding rate on spot synths that track volatile assets
It would incentivize holders of volatile spot synths to exchange into stable synths that track fiat assets, which would reduce debt pool skew and provide a lever to disincentivize skew in the future

SIP-363: List SNX, SOL, and WIF on Perps V3 on Base

This SIP, presented by Burt, proposes listing SNX, SOL, and WIF on Perps V3 on Base
SOL was chosen because it’s the next blue chip behind ETH and BTC
WIF was chosen as the hottest new meme coin
SNX was chosen because the community has expressed a lot of interest in an SNX perps listing, but it was never possible in V2 since it was backing sUSD
They all would incentivize users to shift over to Perps V3, particularly to make use of perp assets not listed on V2 (SNX and WIF)

SIP-368: Preemptive Approval for Listing W Token on Perps V3 on Base

Lastly, this SIP seeks preemptive approval to list the W token (native token of Wormhole) once it launches and has Perps listings available on centralized exchanges
This token is expected to have massive interest at launch and by authorizing the listing ahead of the actual launch, the protocol would be in a better position to capture more of the initial volume
The W token is expected to launch by the end of March
Adam asked Burt to add language specifying that the configuration SCCP be conditional on the token already being traded

Grants Council

In Grants Council updates, synthquest is working with a dev to get any final comments and issues fixed for the Watcher page. The other dev who is working on the arbitrage bot also gave the GC an update, saying that the early numbers are looking really promising for automated cex/dex arbitrage trades. They are aiming to have a draft of this complete by the end of the governance epoch. Currently, the bot can open positions on cex/dex and run through a lot of checks to ensure that these are opened correctly. A beta version of the position monitor was also finished, which aims to ensure positions won’t get near liquidation.

Ambassador Council

Present at the March 12, 2024 Ambassador Council meeting:
Ambassadors: GUNBOATs, Kevin, Mastermojo, Matt, Westie

And lastly, for a quick Ambassador update, the team hosted a Spartan Space last week with Pyth. Click here for a recording of the call! And be on the lookout on Twitter for the Ambassadors’ upcoming Governance update tweet.

SNXweave Anchor Podcast: https://anchor.fm/snxweave

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SIP/SCCP status tracker:

SIP-364: Reconfigure Grants Council, Status: draft

SIP-353: Improve Protocol Coordination, Status: draft

SIP-367: Synthetix V3 Deployment to Arbitrum, Status: draft

SIP-2059: Legacy Spot Synth Migration, Status: draft

SIP-363: List SNX, SOL, and WIF on Perps V3 on Base, Status: draft

SIP-368: Preemptive Approval for Listing W Token on Perps V3 on Base, Status: draft