SNXweave Weekly Recap 136

SNXweave -

May 1, 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

  • Elections: Voting is open now and will close May 5th, so get your votes in on the governance site before then! And catch the recording of the Spartan Council Election Panel to help you decide who to vote for.
  • Synthetix now supports 14 new perps markets on Base: TAO, LINK, GMX, INJ, AXL, SUI, ETHFI, TIA, STX, ARKM, TON, PENDLE, GALA, and BOME.
  • The specific market parameters for each new market can be found in SCCP-327, and liquidity providers can earn a share of the protocol fees by providing liquidity to these markets.
  • SIP-377: Add aUSDc (stataUSDc) as a new collateral type to Synthetix V3 on Base presentation recap
  • SIP-378: Perps V3 — Integrator Requests & Improvements presentation recap

Spartan Council and SIP updates

Present at the April 23, 2024 Spartan Council Weekly Project Sync:
Spartan Council: bilby, cyberduck, Jackson, Millie, ml_sudo, Snax Frens
Core Contributors: Afif, Cavalier, Jade, KALEB, Mati, Matt, meb, Mike, Nikita, noah, Steve, troy

First, a quick reminder that elections are happening! Head to governance.synthetix.io to cast your ballots for the Spartan, Ambassador, and Treasury Councils before voting closes on May 5th! And, in case you missed it, the Spartan Council Election Panel happened last week. Catch the recording to help you decide who to vote for.

Now onto our regular updates, Synthetix now supports 14 new perps markets on Base! The newly added markets include Bittensor (TAO), Chainlink (LINK), GMX (GMX), Injective Protocol (INJ), Axelar (AXL), Sui (SUI), Etherfi (ETHFI), Celestia (TIA), Stacks (STX), Arkham (ARKM), Toncoin (TON), Pendle (PENDLE), Gala (GALA), and Book of Meme (BOME).

Most of these markets were proposed last week in SIP presentations by Burt, who explained that some were selected based on their high volume and interest on V2X and some were selected due to their high trading volume and lack of availability on V2. Adding exclusive markets to V3 on Base will also most likely create a natural incentive for users to migrate.

The specific market parameters for each new market can be found in SCCP-327, and liquidity providers can earn a share of the protocol fees by providing liquidity to these markets.

There were also a couple other SIP presentations last week, so let’s briefly review those as well:

SIP-377: Add aUSDc (stataUSDc) as a new collateral type to Synthetix V3 on Base

  • This SIP was re-presented by Matt, following some concerns using non-USDC collateral types
  • From the previous presentation, a potential edge case was raised by Millie detailing a situation where a large portion of traders were in profit and all wanted to withdraw funds at the same time
  • The solution that was proposed, and that is now reflected in the SIP, is to limit the total allowable non-USDC collateral to 50%
  • Afif explained that the reason all USDC collateral is accumulated into one pool is to account for this edge case
  • The need to liquidate aUSDC would come with an additional step (having to unwrap the aUSDC to receive USDC), so there should always be sufficient USDC in the pool to cover the edge case so that traders can exit in the native trading asset (USDC)

SIP-378: Perps V3 — Integrator Requests & Improvements

  • Presented by Kaleb, this SIP proposes three Perps V3 improvements that were requested by integrators:

1) Remove the acceptable price check on order commitment

  • Requested by Kwenta
  • This function was implemented for both settlement and commitment, but it should only apply to order settlement
  • This has been causing issues for integrators because it requires them to push fresh price updates at every commitment, which isn’t necessary because keepers push fresh price data at settlement

2) Use the on-chain price, without any staleness tolerance check, when settleOrder calls requiredCredit

  • Proposed by Core Contributors (CCs)
  • This change would increase price staleness leniency when calculating market utilization
  • The markets are generally correlated enough that exact price data does not significantly influence the utilization calculation
  • The proposal here is to use the last available price date rather than requiring a fresh price if the staleness tolerance is exceeded (essentially, increasing the staleness on this check to infinite)

3) Allow for 0 fee perp trading

  • This was a bug surfaced by the CCs
  • When attempting to pay integrators their portion of 0 fee trades, there was an error that caused the trade to revert

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SIP/SCCP status tracker:

SCCP-327: Enable Perps V3 Markets / Update Parameters, Status: vote pending

SIP-377: Add aUSDc (stataUSDc) as a new collateral type to Synthetix V3 on Base, Status: approved

SIP-378: Perps V3 — Integrator Requests & Improvements, Status: approved