SNXweave Weekly Recap 137

SNXweave -

May 15, 2024

The following post contains a recap of news, projects, and important updates from the Spartan Council, Core Contributors, and Ambassador Council from last week.

👉TLDR

  • Elections results
  • On-chain election system discussion: there will be two phases ⬇️ code is in audit for both
  • Phase 1: automatic assignment and transfer of council NFTs, which allocate governance authority to the different councils
  • Phase 2: allow for the SC to directly execute SCCPs
  • Base scaling update: USDC LP incentives have been raised from $50,000/month to $250,000/month. There are also some planned trading incentives that should be announced soon.
  • Perps V3 is ready to scale up and the final major feature update, multi-collateral margin, is in audit. Because Perps V3 is significantly more capital-efficient than V2, it will be possible to achieve much higher OI multiples. In order to achieve the OI that Perps V2 offers, the target LP base would be $50 million.
  • SIP-381: Pool Owner Rewards Distribution Control presentation recap
  • SIP-382: List FRIEND-PERP on Perps V3 on Base presentation recap

Spartan Council and SIP updates

Present at the May 8, 2024 Spartan Council Weekly Project Sync:
Spartan Council: Cavalier, cyberduck, Jackson, Millie, ml_sudo, Snax Frens, snxmaximalists
Core Contributors: Jade, Matt, meb, Mike, Nikita, noah, Steve, troy

Welcome to the new epoch, Spartans! ICYMI, here are your newly elected Council members:

🚨Election Results🚨

  • Your Spartan Council members for the epoch will be Afif, Cavalier, Cyberduck, Jackson, Millie, ml_sudo, Snaxfrens, and Snxmaximalists
  • Serving the community on the Treasury Council this epoch will be CoKaiynne, Slinky, SpartanGlory, and 0x27C
  • And lastly, your Ambassadors for the coming epoch will be Dsacks, GUNBOATs, MasterMojo, Matt, and Westie

Thank you to all who ran, voted, and participated in governance this past epoch, and congratulations to our newly elected Council members!

Now onto our regular updates — last week the Spartan Council discussed the on-chain election system and related upgrades. Moving Synthetix governance fully on-chain will come in two phases, and the code for both implementations is in audit (we should hear additional timeline details this week).

The two phases will be as follows:

1. The first phase is the automatic assignment and transfer of council NFTs, which allocate governance authority to the different councils

  • Elections are expected to be fully on-chain next epoch
  • Depending on how work progresses on the SNX chain over the course of the year, it’s possible that the next election could take place on the SNX chain (if not, it will most likely happen on Optimism or Ethereum)

2. The second phase is to allow for the SC to directly execute SCCPs

  • Currently, SCCPs are put to a vote on snapshot and queued up in Cannon for release
  • The new process will eliminate the snapshot vote and allow the SC to release the SCCPs directly through Cannon
  • Voting and releasing will be a single process
  • ml_sudo called out a couple of instances in the last epoch where release specifications were changed after the initial snapshot vote
  • In the new system, one of the signers will have to execute the transaction that makes the upgrade live, so it will be on the executer to make sure the release matches what was presented and voted on
  • Cav noted that this authority would only exist for SCCPs to start — which are configuration changes rather than code changes

Next, for a Base scaling update, USDC LP incentives have been raised from $50,000/month to $250,000/month (from the Gauntlet incentive marketing program), which will generate a substantial APR boost for LPs (currently around 50%). There are also some planned trading incentives that should be announced soon.

Perps V3 is also ready to scale up and the final major feature update, multi-collateral margin, is in audit. Because Perps V3 is significantly more capital-efficient than V2, it will be possible to achieve much higher OI multiples. In order to achieve the OI that Perps V2 offers, the target LP base would be $50 million.

Lastly, there were a couple of SIP presentations last week, so let’s briefly review them:

SIP-381: Pool Owner Rewards Distribution Control

  • Presented by Noah, this SIP proposes adding core system functionality that would allow a pool owner to adjust reward distributions
  • Currently, the token emission is incorporated in the distributor and can only be changed by the distributor contract
  • This can cause the distributions to fall out of sync with the accounting of the rewards after integration
  • The new change would allow pool owners to modify those values if necessary
  • This has been approved with 7 votes in favor

SIP-382: List FRIEND-PERP on Perps V3 on Base

  • Proposed by Danny, this SIP requests preemptive approval to list FRIEND on Perps V3 once it’s available for trading on centralized exchanges
  • Danny expects it to be a popular listing based on how difficult it is to gain spot exposure to the token right now

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SIP/SCCP status tracker:

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

SIP-381: Pool Owner Rewards Distribution Control, Status: approved

SIP-382: List FRIEND-PERP on Perps V3 on Base, Status: draft