SNXweave Weekly Recap 133

April 10, 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 LP app is now public and live on Base!
• Andromeda: Currently ~ $20 million in daily perps volume, over $400 million in cumulative volume, and over $10 million in LP-backed collateral. OI caps are being raised now.
• Migration of L1 SNX to V3 using the V3 legacy market is expected to be ready this month
• L1 Perps third audit is underway and expected to be complete this month
• Synthetix deployment to Arbitrum has been deployed and has initial deposits
• UX issue when bridging to Optimism discussion, see below for details
• SIP-371: Add sUSDe LP collateral support to Synthetix V3 on Arbitrum presentation recap

Spartan Council and SIP updates

Present at the April 3, 2024 Spartan Council Weekly Project Sync:
Spartan Council: Adam, bilby, cyberduck, Kain, Millie, ml_sudo, Snax Frens
Core Contributors: Afif, Burt, Cavalier, David, Jade, jz, KALEB, Matt, meb, Mike, noah, Steve, troy

First, in exciting news, the V3 LP app is now public and live on Base! Users can now participate as liquidity providers by supplying USDC collateral to the Spartan Council Pool. In return, you’ll earn a share of Perps trading fees and be eligible for USDC LP incentives provided by the Synthetix Treasury Council. As liquidity grows, Synthetix V3 on Base will be able to support increased open interest (OI) and introduce new markets.

To get started as an LP and learn more about the incentive programs, follow the instructions in this blog.

While we’re on the topic of Andromeda, let’s do a quick update on the scaling of markets on Base. There’s about $20 million in daily perps volume, over $400 million in cumulative volume, and over $10 million in LP-backed collateral. Now that LP-backed collateral has surpassed $5 million, the OI caps are being raised.

And since increasing the OI caps is a prerequisite for new market listings already approved by governance, those can now move forward. This is perfect timing to capture the recent activity surge on Base (TVL has nearly doubled over the past month with consistent daily volume over $500 million).

Next, the migration of L1 SNX to V3 using the V3 legacy market is expected to be ready this month. The UI is being prepared for this SIP, and fork tests are being simulated for the migration. This will mark a major milestone, as it would give large L1 stakers the ability to seamlessly migrate to V3. This is also a pre-requisite for scaling L1 Perps.

And speaking of L1 Perps, the third audit is underway and expected to be complete this month. The Synthetix deployment to Arbitrum has also been deployed and has initial deposits.

The SC also discussed fully on-chain governance last week. SIP-360, for the modular cross-chain election system, and SIP-341, to add a configure address to execute SCCPs, are both ready to be presented. Any community feedback is welcomed ahead of these presentations.

In other discussion, Millie brought up a bridging issue that several community members have brought to his attention. There is currently a UX issue when bridging to Optimism where the estimated gas is much higher than it should be. When Optimism upgraded to Bedrock, there was a compatibility issue with the old bridging contracts, and the temporary solution is to display higher estimates. They are currently working on it, but the actual gas ends up being about 10x lower than the estimate.

Lastly, SIP-371 was presented last week. So let’s briefly review that:

SIP-371: Add sUSDe LP collateral support to Synthetix V3 on Arbitrum

• Presented by Afif, this SIP proposes adding Ethena’s sUSDe as LP collateral to Synthetix V3 on Arbitrum
• The Arbitrum deployment is still paused, but this SIP is seeking pre-approval to add the asset as an LP collateral once all of the other governance processes approve the launch
• This addition will help scale the Arbitrum deployment by bringing liquidity to Arbitrum faster
• The proposal specifies a $50 million cap with minting at 125% c-ratio and 105% liquidation ratio

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SIP/SCCP status tracker:

SIP-306: V3 Migration, Status: approved

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

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

SIP-341: Add Configurer Address, Status: approved

SIP-371: Add sUSDe LP collateral support to Synthetix V3 on Arbitrum, Status: draft