SNXweave Weekly Recap 142

SNXweave -

June 19, 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 about $1.67 billion in cumulative volume, BTC & ETH OI caps remain at $15 million, and 71,000 SNX now in cumulative burn.
  • Multi-collateral perps: SIP is being released to testnet, hoping for full release by the end of the month if all goes well. This will enable the use of sETH and sBTC as margin.
  • L1 SNX Migration to V3: Expected to be released this month, pending L1 Perps. Migration should be possible starting as early as this week.
  • Arbitrum launch: Synthetix V3 is now live on Arbitrum! This deployment is the first of many stages to fully integrate Synthetix’s liquidity layer and support Perps V3. See below for more details.
  • SIP-392: Support Ethena USDe as LP Collateral presentation recap (see below)
  • SIP-391: Liquidations on Synthetix using Pyth’s Express Relay presentation recap (see below)
  • Ambassador Council update: Team discussed Optimism proposals — they have their votes queued up & ready to send. Matt and MasterMojo are running for the OP Grants Council again — vote ends today! Matt, Westie, and Mojo are Optimism badge holders and have helped ecosystem partners apply for Round 4 of Retro Funding. Danny has also been working with Synthetix ecosystem partners, and MasterMojo worked with CC designer Steve to create a new ecosystem graphic (see below).

Spartan Council and SIP updates

Present at the June 12, 2024 Spartan Council Weekly Project Sync:
Spartan Council: Afif, Cavalier, cyberduck, Millie, ml_sudo, Snax Frens, snxmaximalists
Core Contributors: Jade, Kaleb, Matt, Max, meb, Mike, noah, Steve, troy

Starting off with a Base update, there is currently about $1.67 billion in cumulative volume and the BTC and ETH OI caps remain at $15 million, with 71,000 SNX now in cumulative burn. The goal is still to get to $100 million in daily volume and sustain over $20 million in LP-backed collateral, so incentives are continuing and yield-bearing LP collateral options are also being added to help reach these milestones.

Next, SIP-383 for multi-collateral perps is being released to testnet, with hopes of a full release by the end of the month if all goes well. This will enable the use of sETH and sBTC as margin.

The migration of L1 SNX to V3 is also expected to be released this month, pending L1 Perps. Migration should be possible starting as early as this week.

And in exciting news, Synthetix V3 is now live on Arbitrum! As of yesterday, depositing ETH, ARB, and USDC will earn users ARB LTIP rewards. Depositors can also mint Synthetix’s new Arbitrum-native stablecoin, USDx. This deployment is the first of many stages to fully integrate Synthetix’s liquidity layer and support Perps V3.

The deployment will progress through 3 key milestones:

1. Week 1: Attract a critical mass of LP collateral in ARB, USDC, and ETH. Once total LP collateral reaches $10–20 million, Perps trading will be ready to launch.

2. Weeks 2–3: Enable Ethena Labs assets sUSDe & USDe as collateral and support additional yield-generating collateral from Lido Finance, ether.fi, and Aave.

3. Weeks 3–4: Contingent on LP scaling, enable the Synthetix Perps market. Trading rebates will begin in 4–6 weeks, gradually enabling trading activities with limited open interest to manage risk.

Be sure to check out the article to read more about the launch on Arbitrum, including all about incentives and fee distribution, key differences for this launch, the growth plan, and the Arbitrum-native stablecoin.

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

SIP-392: Support Ethena USDe as LP Collateral

  • This SIP, presented by Matt, proposes adding Ethena’s USDe as LP collateral to Synthetix V3 on Arbitrum
  • This would add another yield-generating asset to the list of allowable LP collateral and further increase capital efficiency
  • This would give prospective LPs more options for contributing to the collateral base that will eventually support perps markets on Arbitrum

SIP-391: Liquidations on Synthetix using Pyth’s Express Relay

  • Yasser proposed and presented this SIP, which would enable liquidation to USDC for liquidations that occur on non-USDC margin once multi-collateral margin is enabled
  • The goal here is to reduce slippage through competitive bidding
  • Yasser explained that one of the biggest challenges in the multi-collateral implementation was figuring out how to handle liquidations
  • Without this integration, liquidations of non-USDC margin would return liquidation rewards to LPs in the margin type that was deposited by the trader (which could be sBTC, sETH or any other type of allowable margin collateral)
  • The LP would then have to unwrap those rewards and sell for USDC independently
  • This integration would allow the conversion to USDC to happen on the backend so that LPs can receive their reward in the asset they are LPing with (USDC). This also simultaneously eliminates the attack vector that would have otherwise been presented if the protocol was handling the unwrap transaction (Express Relay prevents opportunistic transaction ordering surrounding liquidations)
  • This would not disrupt or disincentivize the current network of liquidators

Ambassador Council

Present at the June 12, 2024 Ambassador Council meeting:
Ambassadors: dsacks, GUNBOATs, Mastermojo, Matt, Westie

In Ambassador updates, last week the team discussed Optimism proposals, which they have their votes queued up for to send them tomorrow. And speaking of Optimism, Matt and MasterMojo are actually running for the OP Grants Council again, so stay tuned because the vote ends today! Matt, Westie, and Mojo are also Optimism badge holders and have helped ecosystem partners apply for Round 4 of Retro Funding. They are in the review stage of that, so we’ll be getting an additional update from them in the next couple of weeks.

Danny has also been working with Synthetix ecosystem partners, and Mojo recently worked with designer Steve to create a new graphic that displays the ever-growing ecosystem:

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SIP/SCCP status tracker:

SIP-383: Multi-Collateral Margin Support — Perps V3, Status: approved

SIP-392: Support Ethena USDe as LP Collateral, Status: draft

SIP-391: Liquidations on Synthetix using Pyth’s Express Relay, Status: draft