SNXweave Weekly Recap 131

March 27, 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

• SNX migration plan:
• The V2X portion has been audited and released on L1 and the V3 portion was audited as well
• This is in its testing phase; the next step is to release the V3 upgrade on L1
• How it will work:
• Upon migration, the legacy market contract will issue a V3 account with the users’ migrated debt shares and collateral, which will include their locked vesting entries (similar to L1 to L2 debt migration on V2X).
• Accounts below the destination, V3, liquidation ratio would be liquidated during the migrations and socialized amongst V3 accounts.
• Users with V2X sUSD will also be able to burn and mint V3 sUSD, and L1 and L2 debt pools on V3 are independent so they will not impact V2X debt oracle reporting.
• SIP-2058: List Axelar Token (AXL) on Synthetix Perps presentation recap
• Ambassador Council updates:
• Most recent Ambassador governance update posted on Twitter
• Results from Round 1 of Optimism Grants Cycle 19 are in the update. See notable winners from the Synthetix Ecosystem below
• Current Optimism Grants deadline is today
• Pyth Spartan Space notes below

Spartan Council and SIP updates

Present at the March 20, 2024 Spartan Council Weekly Project Sync:
Spartan Council: Adam, bilby, cyberduck, Kain, Millie, ml_sudo, Snax Frens
Core Contributors: Afif, Ana, Burt, Cavalier, Jade, jz, KALEB, Matt, meb, Mike, Nikita, Steve, troy

First let’s discuss the SNX migration plan — the V2X portion has been audited and released on L1 and the V3 portion was audited as well. This is currently in the dry run deployment and testing phase, and the next step is to release the V3 upgrade on L1. At this point, the migration framework will be fully functional and users can begin voluntarily migrating — this will be one-click for users. At some later governance-determined date, there will be a forced migration to V3.

ML_sudo asked if there have been any forced migrations in the past. Kaleb responded saying there may have been one smaller migration due to a bug in the early loan products. He went on to add that, in this case, it is more of an emergency measure for accounts with lost keys, etc. Cav added that once the voluntary migration phase is reached, all of the incentives will be directing users towards that very simple (one-click) migration process.

Now let’s get into how this will work! Upon migration, the legacy market contract will issue a V3 account with the users’ migrated debt shares and collateral, which will include their locked vesting entries (similar to L1 to L2 debt migration on V2X).

Accounts below the destination, V3, liquidation ratio would be liquidated during the migrations and socialized amongst V3 accounts. Duck asked if this meant that anyone who had not yet migrated to V3 would be ineligible to receive liquidation rewards. Meb clarified that yes, unless you have already migrated to V3 you will not receive those rewards. Currently, no users are at risk of being liquidated during migration, so this shouldn’t be a huge concern.

Users with V2X sUSD will also be able to burn and mint V3 sUSD, and L1 and L2 debt pools on V3 are independent so they will not impact V2X debt oracle reporting. V2X wrappers, loans, and spot synths will also remain on V2 for now, and there will be a separate migration plan for these products later.

There was also one SIP presentation last week, to list Axelar on Synthetix Perps, so let’s review that:

SIP-2058: List Axelar Token (AXL) on Synthetix Perps

• This SIP was presented by Jason from Axelar, who explained that this is one of the leading interoperability solutions known for being fully decentralized
• AXL was recently listed on Binance spot and Futures markets and has regularly generated $100 million in daily volume
• It was also listed on dYdX in the last couple of weeks, and is in the process of being listed on Hyperliquid
• The proposal was written for listing on Optimism, but Burt and Duck recommended listing on V3 (Base)

Ambassador Council

Present at the March 19, 2024 Ambassador Council meeting:
Ambassadors: GUNBOATs, Kevin, Mastermojo, Matt, Westie

In Ambassador Council updates, the team released their most recent Ambassador governance update on Twitter! The Tweet has a link to Optimism’s governance calendar, as well as results from the most recent proposal votes where the Ambassadors performed their OP Token House duties:

They also shared resources for how to apply for an Optimism Grant — the current deadline for submissions is today, March 27th, at 7pm GMT! And on the note of Optimism Grants, the results from Round 1 of Cycle 19 can be found in the update. Some notable winners from the Synthetix Ecosystem include:

1. Synthetix for a Mission Request for Best in Class Perps DEX: This grant will support the building of an orderbook Perps DEX on Synthetix Perps, featuring an advanced orderbook, multiple order types (e.g., take profit, stop loss), an open-source relayer, and the infrastructure to enforce these trading rules

2. Thales for a Growth Grant

3. Synthetix for a Growth Grant: Boost sUSD liquidity and support Perps trading competitions

4. ERC-7412 Tooling + Education for a Builders Grant

There’s even more content in the governance tweet, so be sure to check it out on Twitter!

The Ambassadors also released notes from their Spartan Space with Pyth, with a TLDR of:

• Jayant from Douro Labs discussed Pyth Network as an oracle provider with high-frequency, low-latency oracles
• Pyth provides market data from 1st party data providers and operates across 50+ blockchains, updating every 400mm
• It uses a pull-based model for reduced latency and enhanced security, with over 100 high-quality data providers to ensure robust and accurate data
• Pyth’s governance model is inspired by Synthetix, with representative councils (Pythian and Price Feed) that focus on community involvement and long-term sustainability
• Synthetix Perps V2, powered by Pyth low-latency oracles, has driven over $50 billion in trading volume

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SIP/SCCP status tracker:

SIP-2058: List Axelar Token (AXL) on Synthetix Perps, Status: draft