SNXweave Weekly Recap 140

June 5, 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

• Base update: Currently ~$25 million in daily perps volume and $1.45 billion in cumulative volume. The BTC and ETH OI caps remain at $15 million, with 61,000 SNX in cumulative burn. Kwenta has integrated Perps trading on Base into a single front end, where users have the option to trade on Base or Optimism.
• Migration from L1 SNX to V3: The Synthetix Treasury is expected to begin migrating in the coming weeks once the Legacy market is released and the interface is available. Synth deprecation has reached a steady state, with nearly 50% of the synths outstanding having been redeemed so far.
• Launch and scale of L1 Perps: On testnet, and the CCs are currently processing audit feedback. Documentation is being sent to prospective integrators, and the collateral support will be in place to launch L1 Perps along with the Treasury’s plans to migrate this week.
• Launch and scale on Arbitrum: The LP deposits and incentives are beginning this week.
• SIP to bring elections on chain: The testing phase for the implementation is starting this week, where the CCs are working on crosschain messages using Wormhole. The elections for the next epoch will use V3 voting power thanks to SIP-360.
• Fee Rebate Program: ICYMI — 500,000 SNX has been allocated in total, with up to 50,000 SNX available weekly. The first epoch has concluded and rewards have been distributed for Synthetix Perps traders on Base!
• SIP-385: Arbitrum perps V3 fee model presentation recap (see below)
• SIP-386: Bring perps V3 markets to parity with perps V2 presentation recap (see below)

Spartan Council and SIP updates

Present at the May 29, 2024 Spartan Council Weekly Project Sync:
Spartan Council: Afif, Cavalier, cyberduck, Jackson, Millie, Snax Frens, snxmaximalists
Core Contributors: Kaleb, Jade, joey, jz, Matt, meb, Mike, Steve, troy

To start with a Base update, there is currently about $25 million in daily perps volume and $1.45 billion in cumulative volume. Kwenta has now integrated Perps trading on Base into a single front end, where users have the option to trade on Base or Optimism using the familiar Kwenta UI. The BTC and ETH OI caps remain at $15 million, with 61,000 SNX in cumulative burn.

For the migration from L1 SNX to V3, the Synthetix Treasury is expected to begin migrating in the coming weeks once the Legacy market is released and the interface is available. Also, synth deprecation has reached a steady state, with nearly 50% of the synths outstanding having been redeemed so far.

The launch and scale of L1 Perps is on testnet, and the CCs are currently processing audit feedback. Documentation is being sent to prospective integrators, and the collateral support will be in place to launch L1 Perps along with the Treasury’s plans to migrate this week.

As for the launch and scale on Arbitrum, the LP deposits and incentives are beginning this week.

Next, the testing phase for the implementation of the SIP to bring governance on chain is starting this week, where the CCs are working on crosschain messages using Wormhole. The elections for the next epoch will use V3 voting power thanks to SIP-360.

And ICYMI, Synthetix is running a Fee Rebate Program, with 500,000 SNX allocated in total and up to 50,000 SNX available weekly. The first epoch has concluded and rewards have been distributed for Synthetix Perps traders on Base! So any traders who used Kwenta to trade Synthetix Perps on Base between May 22nd and May 29th have already received their share of roughly 22,000 SNX in trading fee rebates. Epoch 2 for this program has already begun — so be sure to trade Synthetix Perps on Base to receive rebates equal to 90% of trading fees.

There were also a couple of SIP presentations last week, so let’s briefly go over them:

SIP-385: Arbitrum perps V3 fee model

• Presented by cyberduck, this SIP introduces a fee-sharing mechanism for Perps V3 deployment on Arbitrum, where liquidity providers earn 40%, the protocol’s treasury earns 40%, and integrators earn 20% of the base fee in Synthetix’s native Arbitrum stablecoin
• This is the same fee sharing proposal that is currently active on Base
• The proposal suggests bridging the fees earmarked for burning to the contract that already exists on Base
• Millie suggested setting up the same burn contract that exists on Base on Arbitrum as well
• The primary benefit with this approach is that it would support sell side liquidity on Arbitrum
• Cav voiced support for this approach even though it would require a bit more upfront admin
• Kaleb asked that the specific address be added to the SIP for clarity

SIP-386: Bring perps V3 markets to parity with perps V2

• Presented by Millie, this SIP proposes adding all of the markets currently on V2, but not available on Base, to Perps V3 on Base
• This would not include the select markets already in the process of being wound down

Both of these SIPs are still in draft.

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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-385: Arbitrum perps V3 fee model, Status: draft

SIP-386: Bring perps V3 markets to parity with perps V2, Status: draft