SNXweave Weekly Recap
May 28, 2025
The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors from last week.
👉 TLDR
- SIP-415 Withdrawn: Proposal to Acquire Derive
- Proposal aimed to integrate Derive’s off-chain matching engine to accelerate Synthetix’s Mainnet derivatives offering.
- Valued Derive at ~$27M with a proposed 27 DRV <> 1 SNX exchange ratio, funded by minting 29.3M SNX.
- Withdrawn after feedback from stakeholders and the community.
- Why It Was Withdrawn
- Community consensus did not materialize.
- Stakeholders raised questions around valuation and deal structure.
- Governance alignment is core to Synthetix’s process — without it, the proposal could not move forward.
- SNX Staking Relaunched via 420 Pool on Ethereum Mainnet!
- SNX holders can now stake without managing debt, c-ratios, or facing liquidations.
- 5 million SNX reward pool, accruing from today May 28 (UTC), locked for 12 months with pro-rata distribution.
- Principal can be withdrawable any time with a 7-day cooldown; early exit penalty applies to rewards only.
- Over 50% of SNX supply is already staked!
- Why It Matters
- This marks Phase 2 of Synthetix’s evolution: simplifying protocol participation.
- Removes complexity to attract new users and reward long-term SNX holders.
- Aligns capital with commitment through time-weighted incentives and reward forfeiture on early exits.
- Prepares the protocol for the upcoming launch of Synthetix V4.
- Clarification on Infinex Support
- Contrary to early messaging, Infinex will not support SNX staking at launch.
- Support is planned but will roll out in the following weeks.
Spartan Council and SIP updates
First, Synthetix has officially withdrawn SIP-415, the proposal to acquire Derive, following feedback from stakeholders and the broader community. While the acquisition aimed to bring Derive’s off-chain matching engine to Synthetix and enhance the protocol’s competitiveness on Ethereum Mainnet, concerns around the valuation and terms of the deal ultimately led to the proposal being pulled.
Community alignment and governance consensus are non-negotiable for Synthetix. In this case, the anticipated support did not materialize. The decision reflects a commitment to continue building transparently, while also keeping the community’s long-term interest in mind.
Synthetix remains focused on delivering a leading decentralized derivatives platform on Ethereum Mainnet and will continue to explore opportunities that align with that mission. Thank you to everyone who provided input, and best of luck to the Derive team in their journey ahead. You can read the full announcement here.
Next, SNX staking is back! And it just got significantly simpler. Deposits are now open in the 420 Pool, on Ethereum Mainnet only, and SNX holders can now stake directly into the protocol without managing a debt position or worrying about c-ratios or liquidations. This is phase 2 of the new Synthetix vision: no more friction, no more complexity, just direct protocol participation and aligned incentives.
Rewards have begun accruing today, May 28th (UTC), and the pool features 5 million SNX in rewards, distributed pro-rata based on the amount and duration of SNX staked. Stakers can withdraw their principal at any time with a 7-day cooldown, but rewards will remain locked until the end of the 12-month campaign in May 2026. An early exit penalty applies to rewards only, not the principal.
This launch marks the next step in simplifying protocol participation for SNX holders and lays the foundation for V4. Over 50% of the SNX supply is already staked, and early signs point to strong demand for the new model.
Synthetix made a correction on Twitter, however, noting that Infinex will not support SNX staking at launch, despite earlier messaging. Support will follow, but is not expected in the first few weeks.
You can stake directly at 420.synthetix.io, and read the full breakdown in the staking announcement.
But why does this matter? This is more than just another staking product. SNX staking under the new 420 Pool is a key part of a broader shift in protocol mechanics — moving away from technical barriers and toward permissionless, long-term-aligned participation. The exit penalty is designed to deter short-term behavior and recirculate unclaimed rewards back into the Treasury, benefiting committed stakers.
This shift also aligns with the vision for Synthetix V4 — where simplicity, scalability, and direct participation come together to support a more robust and sustainable derivatives platform. Synthetix has been going through a big period of change, so the loyal SNX community will continue to be rewarded — especially those who have been responsible in the past. Here’s how to get started:
- Buy SNX from your trusted source (or Swidge it on Infinex)
- Visit http://420.synthetix.io
- Connect your wallet and stake the SNX any time from now
- Watch it grow — rewards start accruing today!