SNXweave Weekly Recap 164
January 15, 2025
The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors from last week.
👉TLDR
- Sunsetting Arbitrum: Traders on Arbitrum can no longer open new positions & are advised to migrate positions to Base (see below for details). Synthetix is also transitioning USDx on Arbitrum to USDe.
- LP incentives on Base have been extended: From now through February 6th, Synthetix will be distributing 15,000 SNX and 20,000 USDC weekly.
- sUSD peg issue addressed: Most of the issues have been resolved, see below for next steps.
- New incentive program for yield farmers: Starting January 16th, 5,000 OP and 5,000 SNX will be distributed weekly to sUSD depositors on Infinex.
- Fresh user docs: Synthetix released new user docs to make it easier to navigate and learn about the Synthetix ecosystem of products.
Spartan Council and SIP updates
As of last week, Synthetix is sunsetting Arbitrum as part of a broader strategy to consolidate resources and focus on its integration with Base. Traders on Arbitrum can no longer open new positions but can still close existing ones. It is highly advised that Traders to move their positions to Base to avoid larger-than-usual changes in premiums, discounts, or funding rates. To migrate:
- Close Positions: Close your Arbitrum positions and withdraw margin.
- Bridge Funds: Use our swap interface to bridge your margin to Base.
- Restore Positions: Deposit your margin on Base and restore positions if necessary — all Arbitrum markets are live on Base.
Synthetix is also transitioning USDx on Arbitrum to USDe, and the treasury has begun buying USDx from the market and adding capacity to the USDx/USDe wrapper to facilitate this transition. Liquidity providers are encouraged to migrate to Base, where additional incentives and yield options will be available.
This big decision to sunset Arbitrum ultimately aligns with the launch of Synthetix V3 features, like gasless 1-click trading and multicollateral margin, and aims to streamline operations and deliver an enhanced, uninterrupted trading experience.
Next, LP incentives on Base have been extended for a few more weeks, until February 6th. For the next three weeks Synthetix will be distributing 15,000 SNX and 20,000 USDC weekly, as well as Aave yield-bearing stataUSDC deposits. Check out the current yield in the liquidity app!
As an update for sUSD pegoooors, Fenway recently released an announcement addressing the sUSD peg problem: most of the issues have been resolved thanks to the steps they’ve taken over the past few weeks (like spot purchases, limit orders, and Velodrome incentives to help unwind large positions). They are now planning additional measures to accelerate peg restoration, including:
- Increasing funding to incentivize voting for Velodrome and Curve sUSD pools
- Launching an sUSD deposit pool with high APY (possibly on Infinex)
- Testing longer-term vault strategies with Treasury funds to boost sUSD buy-side demand
We should be hearing more about this in the coming weeks, so stay tuned.
Robin also announced that Synthetix is launching a new incentive program for yield farmers holding sUSD in their Infinex accounts. Starting tomorrow, January 16, and continuing for six weeks, 5,000 OP and 5,000 SNX will be distributed weekly to sUSD depositors. The rewards will be based on deposit size, with the APR rates at the time of the announcement being:
- $1M in deposits = 91% APR
- $2M in deposits = 45.5% APR
- $5M in deposits = 18.2% APR
Additionally, one random active user with over $1,000 in sUSD deposits will receive an unlocked Patron each week. And the reward amounts may increase if total deposits exceed $5M. To participate, just create an Infinex account, deposit sUSD, and watch your rewards grow!
Lastly, Synthetix released fresh user docs a few days ago, making it easier to navigate important information and learn about the Synthetix ecosystem of products. See for yourself at docs.synthetix.io and get reading!