SNXweave Weekly Recap 161

SNXweave -

December 11, 2024

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

👉TLDR

  • Decembrrrr Base LP incentives: Synthetix is rolling out a four-week program to boost liquidity for the busy perps trading season (see below for details of the program).
  • 87,000 KWENTA tokens were burned last week by the Synthetix Treasury, retiring the entire non-circulating supply of KWENTA.
  • New Perps markets: MORPHO, AERO, and CHILLGUY.
  • Synthetix made the cut as one of only five assets in the Grayscale DeFi Fund.
  • Synthetix has officially acquired TLX (see below for details of the acquisition).
  • Burt announced the revival of The 300 group.

Spartan Council and SIP updates

Starting out strong, Decembrrrr Base LP incentives are here! Synthetix is rolling out a four-week program to boost liquidity for the busy perps trading season. LPs can unwrap new SNX and USDC rewards each week while earning boosted trading fees. Two key changes are being implemented to improve the LP experience and increase the attractiveness of passive stablecoins entering the Synthetix ecosystem:

  • More Fees: The revenue share from V3 trading is increasing to 60%, up from the current 40%. This represents a 50% increase, ensuring liquidity providers are better rewarded.
  • Juicier Yields: Synthetix is adding stataUSDC as an eligible asset for liquidity provision. StataUSDC is a static, non-rebasing version of Aave’s aUSDC token. LPs providing stataUSDC will also earn additional yield from Aave V3 lending interest, currently 12.65%.

The program started yesterday and will run for 4 weeks, ending at 6 AM UTC on January 7th, 2025. It will include weekly rewards of 20,000 SNX and 25,000 USDC, with total incentives of 80,000 SNX and 100,000 USDC. Eligible assets include USDC and stataUSDC, and rewards will accrue every block and are claimable at any time through the Synthetix Liquidity app. Get ready to earn, and participate by depositing USDC or stataUSDC at liquidity.synthetix.io!

Next up, 87,000 KWENTA tokens were burned last week by the Synthetix Treasury. This means the entire non-circulating supply of KWENTA has officially been retired, paving the way for Kwenta and Synthetix to become one unified community. The swap interface is nearing completion, enabling the redemption of KWENTA for SNX. And the updated Synthetix Exchange is on the horizon with a fresh design, new features, and a focus on delivering an unmatched perps trading experience.

And speaking of Kwenta, new Perps markets are now live — head over to Kwenta to trade MORPHO, AERO, and CHILLGUY. MORPHO builds permissionless financial infrastructure as a public good, allowing anyone to earn yield and borrow assets. AERO fuels decentralized trading on Aerodrome, the next-generation AMM that serves as the central liquidity hub for the Base ecosystem. And CHILLGUY is the memecoin that vibes with “just chill.” Built on Solana, it’s perfect for those who value culture, fun, and viral community growth.

In other exciting news, Synthetix made the cut as one of only five assets in the Grayscale DeFi Fund! Synthetix is coming out on top on several fronts these days — also leading the charge for top revenue-generating projects on Optimism.

Next, ICYMI, Synthetix has officially acquired leading leveraged token platform, TLX! The acquisition of TLX will mark the first end-customer, revenue-generating product built on top of Synthetix that will be owned and operated by Synthetix.

Adding leveraged tokens is the first step towards the protocol being able to build and offer a wide range of vault products. This acquisition now initiates the second phase in Synthetix’s new strategy to accelerate the protocol’s evolution from a decentralized liquidity provider to a primary product issuer. You can find the article about the acquisition here, but the key takeaways are:

  • Leveraged tokens: Synthetix will use TLX’s codebase to launch its own leveraged tokens, allowing users to access leverage without using perpetual futures and making the tokens easier to trade and redeem.
  • Revenue and growth: Leveraged tokens will generate revenue for SNX holders and help Synthetix grow by attracting new users and liquidity. And the passionate TLX community will be integrated into Synthetix.
  • Token conversion: TLX holders can burn TLX for SNX at a rate of 18 TLX = 1 SNX, however the conversion will be subject to a lockup and vesting period.
  • Incentives: A leveraged token incentive program will launch in 2025, and 700,000 sUSD will be distributed to TLX holders over the next few months based on their SNX holdings.
  • Next Steps: Synthetix is optimizing the TLX products and planning further releases, including other structured financial products, to diversify its offerings. All in all, this marks a significant milestone in Synthetix’s strategy to grow its product suite and provide more value to SNX tokenholders!

Lastly, yesterday Burt announced the revival of The 300 group! Tasks for The 300 will include active retweeting, comment raids and replies, repping SNX-related identities in your handles and profile pictures, and other social media engagement. If you are already a member of The 300, be sure to like Burt’s message in the Synthetix Discord to stay in the group.

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SIP/SCCP status tracker:

SIP-412: Acquire TLX and Launch Synthetix Vaults, Status: approved