SNXweave Weekly Recap 150

August 21, 2024

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

👉TLDR

• L1 Perps: Released to testnet last week. Integrator outreach was started to determine who will support Perps frontend and Vault functionality.
• Base update: stataUSDC vault is live! The flow is being updated to accept USDC and allow withdrawals in USDC before broader communications.
• V3 migration: In progress — as of Monday, self-liquidations for SNX stakers on Ethereum mainnet have been disabled. If your c-ratio is approaching the liquidation threshold, you will need to burn back to a 500% c-ratio in order to avoid an automated liquidation. No actions are yet required by stakers to migrate to V3 and any updates to this timeline will be announced soon — migration is likely to be enabled this week.
• Synthetix Perps launch on Arbitrum: CCs are waiting on the LTIP council to respond to the extension request. Multi-collateral margin support is in the final remediation stage, as pull requests are in review and tests are being written. The Sepolia release should be on Mainnet this week.
• Governance V3: Released to testnet, aiming for Mainnet this week. Proposed election schedule:
  • Nominations Start: Friday, August 30
  • Voting Starts: Thursday, September 5
  • New Epoch Starts: Sunday, September 15
• Increasing LP fee share portion in V3 discussion: TLDR — the current distribution is 40% LP, 40% protocol (buyback and burn), and 20% integrator. Millie proposed tweaking the LP and protocol percentages to further incentivize LP activity, adding that the yield being offered on stablecoins at other protocols (Aave for example) is quite high now which is attracting some of the potential LP supply. Fifa pointed out that there are other levers at the Spartan Council’s disposal to increase the amount of fees that LPs see — specifically, raising fees or reducing skew scales. Matt suggested waiting for some of the yield-generating collateral types to come online to see how that impacts TV. (see below for full conversation details)
• SIP-384: Launch Synthetix Chain (SNX Chain) Using the OP Stack for V3 Governance presentation overview (see below for recap)
• SIP-403: List RENDER on Synthetix Perps presentation overview (see below for recap)
• Ambassador Council update: The AC discussed two Kwenta votes: GMX integration and Gains Network integration. They voted no on these two proposals (see results below). They also discussed future Spartan Spaces, the upcoming Optimism Mission Request for grants, and OP’s Security Council nominations. The Ambassadors added their approval for a few candidates, including ML_sudo and Troy from Synthetix.

Spartan Council and SIP updates

Present at the August 14, 2024 Spartan Council Weekly Project Sync:
Spartan Council: Cavalier, cyberduck, fifa, Jackson, Millie, ml_sudo, Snax Frens, snxmaximalists
Core Contributors: Fred, Kaleb, Matt, meb, Mike, Mithrandir, moss, Mr.X, robin, Steve, troy, wasp

Starting off with the highlights from the week, L1 Perps was released to testnet last week. And integrator outreach started last week as well to determine who will support Perps frontend and Vault functionality.

As a base update — stataUSDC vault is live! The flow is being updated to accept USDC and allow withdrawals in USDC before broader communications.

The V3 migration is also in progress — as of Monday, self-liquidations for SNX stakers on Ethereum mainnet have been disabled. So if your c-ratio is approaching the liquidation threshold, you will need to burn back to a 500% c-ratio in order to avoid an automated liquidation. No actions are yet required by stakers to migrate to V3 and any updates to this timeline will be announced soon — migration is likely to be enabled this week.

For the Arbitrum scaleup, the CCs are just waiting on the LTIP council to respond to the extension request — at worst, they will just have to give the remainder of the grant back. And multi-collateral margin support is in the final remediation stage, as pull requests are in review and tests are being written. The Sepolia release should be on Mainnet this week.

Governance V3 was also released to testnet, and is aiming for Mainnet this week as well. The proposed election schedule is as follows:

• Nominations Start: Friday, August 30
• Voting Starts: Thursday, September 5
• New Epoch Starts: Sunday, September 15

In other discussion, Mille brought up the possibility of increasing the LP portion of the fee share in V3. The current distribution is 40% LP, 40% protocol (buyback and burn), and 20% integrator. He proposed tweaking the LP and protocol percentages to further incentivize LP activity. When the original fee sharing structure was proposed, there was an understanding among SC members that it could be revisited and changed if necessary. He highlighted a potential concern that the TVL has dropped significantly from the $30 million peak, therefore increasing the portion of fees directed towards LP could bring some of that back.

Millie argued that of the three parties receiving fee distributions, the LPs are taking on the greatest risk and should be compensated accordingly. He added that the yield being offered on stablecoins at other protocols (Aave for example) is also quite high now, which is attracting some of the potential LP supply. Fifa pointed out that there are other levers at the Spartan Council’s disposal to increase the amount of fees that LPs see — specifically, raising fees or reducing skew scales. Matt suggested waiting for some of the yield-generating collateral types to come online to see how that impacts TV.

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

SIP-384: Launch Synthetix Chain (SNX Chain) Using the OP Stack for V3 Governance

• Presented by meb, this SIP is a more limited version of the original proposal to launch an SNX Chain
• It would initially just serve as the home for Synthetix V3 governance
• The plan is to leverage Synthetix Chain as the mothership of Synthetix governance and have it operate independently alongside the existing deployments
• This would address current limitations in the election system that require votes to be cast from Optimism Mainnet
• Wormhole crosschain messaging would facilitate the voting/messaging across any network V3 is deployed on
• The plan is to have this ready for the upcoming election (SNX chain is already live on mainnet)

SIP-403: List RENDER on Synthetix Perps

• Millie presented this quick SIP, explaining that RENDER was previously on Synthetix Perps as RNDR before the token migration
• With Pyth adding the new ticker, the market can start trading again

Ambassador Council

Present at the August 14, 2024 Ambassador Council meeting:
Ambassadors: dsacks, GUNBOATs, Mastermojo, Matt, Westie

Lastly, in Ambassador updates, this past week the Council discussed two important Kwenta votes: GMX integration and Gains Network integration. They voted no on these two proposals (see results in the image below). They also discussed future Spartan Spaces, the upcoming Optimism Mission Request for grants, and OP’s Security Council nominations. The Ambassadors added their approval for a few candidates, including ML_sudo and Troy from Synthetix.

SNXweave Anchor Podcast: https://anchor.fm/snxweave

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SIP/SCCP status tracker:

SIP-384: Launch Synthetix Chain (SNX Chain) Using the OP Stack for V3 Governance, Status: draft

SIP-403: List RENDER on Synthetix Perps, Status: draft