SNXweave Weekly Recap 147

July 31, 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

• Arbitrum Scaleup: USDe deposits in Synthetix V3 on Arbitrum are now live in the Ethena app. TC may update rewards numbers starting this week. Perps: multi-collateral margin is not quite ready for launch, as there is a lot of unanticipated integration work on the Kwenta side to deliver a polished UX. SC is inclined to go ahead and launch with what is currently ready, adding the multi-collateral feature when it’s ready.
• V3 Liquidity App: Received a mobile UI, as well as updates to clean up various issues. Robin gave an overview of significant improvements last week, see bullet points below for details.
• L1 Migration to V3: TC has migrated to V3; next few weeks will allow additional stakers to migrate. Synth deprecation is complete, TC will be handling things from here. See below for list of key changes for L1 Stakers on V2X (regarding immediate liquidations, new liquidation process, V3 staker absorption, & direct SNX distribution), as well as important notes for stakers.
• Base update: SIP for multicollateral perps has been released to testnet and is in audit, and Degenthetix is in the planning stage at the moment.
• Orderbook perps project: First grant deadline has been met, this is on testnet while Polynomial and Kwenta work on the matching engine.
• Matching engine explanation: Cross-references new orders against a list of existing orders. If there is a match, the order is a taker order. If there is not a match, it becomes a maker order. Once on testnet, this will satisfy the first phase of the OP grant to build a best-in-class orderbook DEX. The next phase is quite complex and requires building out the UI on the Kwenta side for integration (likely 2 months of work).

Spartan Council and SIP updates

Present at the July 24, 2024 Spartan Council Weekly Project Sync:
Spartan Council: cyberduck, Millie, ml_sudo, Snax Frens, snxmaximalists
Core Contributors: 0xMithrandir, 0xrobin, Fred, Matt, meb, Mike, pixelperfect, skittles, troy

Starting off with the Arbitrum launch and scaleup — USDe deposits in Synthetix V3 on Arbitrum are now live in the Ethena app. The Treasury Council has signaled that they may update rewards numbers starting this week.

As an update regarding Synthetix Perps, multi-collateral margin is not quite ready for launch. The contracts will be ready soon, but there is a lot of unanticipated integration work on the Kwenta side to deliver a polished UX. There was consensus among Spartan Council members to go ahead and launch with what is currently ready and then add the multi-collateral feature when it’s ready.

Next, the LP app received a mobile UI, as well as updates to clean up various issues. Robin gave an update on this last week, announcing a significant improvement to the V3 Liquidity App. Inside this release, there is:

• A redesigned Homepage and Pools page showing wallet balance, TVL, and APR for each pool without needing to drill into each individually.
• A streamlined Dashboard showing only your active positions and most relevant metrics for each of your positions.
• More intuitive position and debt management workflows.
• Performance improvements
• General bug fixes

For the L1 migration, the Treasury Council has migrated to V3, so the next few weeks will allow additional stakers to migrate. Synth deprecation is complete, and the TC will be handling things from here. As a reminder, the key changes for L1 Stakers on V2X will be:

• Immediate Liquidations: SNX staker liquidations will now occur immediately when a position crosses the liquidation ratio. The previous 8-hour delay has been removed.
• New Liquidation Process: When a staker is liquidated on Ethereum, their debt and SNX are transferred to V3.
• V3 Staker Absorption: V3 stakers will absorb both the liquidated SNX and the associated debt. Currently, the only V3 staker is the Treasury Council.
• Direct SNX Distribution: Liquidated SNX will be distributed directly to stakers rather than going into escrow and automatically staked.

In a recent blog post from Synthetix, some important notes for SNX stakers were listed as follows:

1. While SNX can still be moved to L2, any associated debt must be repaid first.

2. No immediate action is required from SNX stakers at this time.

3. Detailed migration instructions will be provided before Phase 2 begins. Users will not be force migrated, users will have the option to do so once a UI is released.

As a Base update, the SIP for multicollateral perps has been released to testnet and is in audit, and Degenthetix is in the planning stage at the moment.

Lastly, the orderbook perps project met its first grant deadline a couple of days ago. The team has been working on a test transaction for the first phase due July 29th, and were able to execute basic matched orderbook transactions. Polynomial is leading the matching engine side, and integration discussions are ongoing with Kwenta. The CCs are also thinking about incentives and market makers.

This is on testnet while Polynomial and Kwenta work on the matching engine. To clarify, the matching engine cross-references new orders against a list of existing orders. Then, if there is a match, the order is a taker order. But if there is not a match, it becomes a maker order. Once on testnet, this will satisfy the first phase of the OP grant to build a best-in-class orderbook DEX. The next phase is quite complex and requires building out the UI on the Kwenta side for integration (likely 2 months of work).

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SIP/SCCP status tracker:

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

SIP-393: Launch Degenthetix on Base, Status: approved