SNXweave Weekly Recap 42

SNXweave -

June 7, 2022

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

Spartan Council and SIP updates

Present at the May 31, 2022 Spartan Council Weekly Project Sync:
Spartan Council: Afif, calavera, Danijel, JVK, Kain, ksett, Mark, SynthaMan
Core Contributors: Ale, Cavalier, KALEB, Matt, Mike, Noah

SIP-239 has been implemented as the sole SIP of the Rasalhague release. As a reminder, this recovered and paid out unallocated liquidation rewards to L1 and L2 stakers. It was originally planned for a few other SIPs to go out on this release, but some have been pushed to separate releases: Kochab and Saiph.

The Kochab release went out last week, implementing SIP-246 to upgrade collateral shorts. This fixed a few accounting bugs that were recently discovered in the Collateral Short contract. It also introduced an owner function to be able to purge debt from the old contract and removed the collapseFeeRate since it was not being utilized.

On the upcoming Saiph release, several SIPs are scheduled to go out:

SIP-235: Update Issuer Modifier

  • This SIP adds another required check to the onlyTrustedMinters modifier in Issuer in order to greatly increase the overall security of the system going forward
  • Approved with 8 votes in favor

SIP-238: Only allow token transfers via their proxies

  • This SIP will modify the system so that users will only be allowed to interact with SNX, as well as synths, via their proxies, and stop allowing transfers via their implementations
  • Not yet voted on

SIP-240: Update Liquidate Amount

  • This SIP Liquidates the correct amount of debt for accounts with mostly escrowed SNX
  • At last week’s presentation, Mark explained that SIP-240 corrects an issue in the new liquidation mechanism that was a niche case and luckily only impacted a few users
  • Approved with 6 votes in favor

SIP-243: Deprecate sDEFI

  • This SIP will deprecate sDEFI and open it for redemption at the latest price available on chain
  • GUNBOATs presented this last week, explaining that the reason for this SIP was the index had LUNA in it, and the team doesn’t have the manpower to manage the index manually.
  • Redemption for this synth would be in sUSD at the current price — effectively similar to equity synth deprecation.
  • Approved with 5 votes in favor

There were a couple of other SIPs that were also presented last week: SIPs 245 and 241. SIP-245, presented by Danijel, proposed allowing a 50% buffer for burning during the minting cooldown. Danijel explained that the motivation behind this SIP was actually a product of Thales’ experience staking SNX on Optimism using a multisig. Due to the volatile price of SNX, by the time they collect the signatures for a particular action, the action pushes them out of the target zone. He therefore proposed adding a larger buffer for burning during the 7-day cooldown.

Kain mentioned that there are only a handful of multisigs claiming SNX weekly. The Council came to an agreement that this SIP is probably not a high priority for V2X right now, so it was rejected and Mark will be doing some feasibility on it.

Lastly for the SIP presentations, Millie presented SIP-241 to update the original KPI-based Ambassador Mandate SIP. There were two modifications made to this original SIP: the removal of KPI metric #4 — Coordinape tracking, and the addition of a KPI metric — written content such as blogs, twitter threads, etc. This SIP was approved with 7 votes in favor.

The Council also discussed the recent community debates regarding raising the c-ratio back up to 400%. Kain wanted to point out that incremental increases would also be an option, emphasizing that “we need to be mindful of what kind of pressure any changes will put on the network” so that stakers aren’t being encouraged to self-liquidate in order to correct their c-ratio. Consensus was reached that there should be some more price stability in SNX before making changes to the c-ratio.

Lastly, on the V3 front, the V3GM election module is currently in audit. The first V3 release went out last week for this governance module, deploying 4 systems (one for each Council). The contracts have been initialized and nominations are set to begin June 10th with voting opening June 17th and the new epoch beginning on July 1st. This will be the first fully on-chain elected governance body for Synthetix.

The V3 team is also currently in the process of writing product SIPs. Ale has written a SIP detailing the architecture of V3, but the team has experienced some delays with all of the urgent work that needed to be done to finish out V2X.

Grants Council

Present at the June 2, 2022 Grants Council meeting:
Grants Team: ALEXANDER, CT, cyberduck, Mike

In Grants Council updates, the team has set up a follow-up meeting with the Stats page developer to discuss, among other things, some performance suggestions that Duck came up with that may improve how the data is displayed and the responsiveness of the page.

For the flash loans project, Alexander raised a good question: will this functionality be available in V3? Mike thinks there will be a similar loan functionality in V3, but the team will confirm this before dedicating resources to this project.

Lastly, for the NFT project, there is still quite a bit of design work that needs to be done. The team is very happy with what they have produced so far and is very excited for the final product, however the design team is now expecting another 6–8 more weeks before designs are complete. CT and Duck also scheduled a meeting with the Universe.xyz team to discuss progress on the marketplace side of the project.

Ambassador Council

Present at the June 2, 2022 Ambassador Council meeting:
Ambassadors: mastermojo, Matt, MiLLiE

In Ambassador Council updates, the key performance indicator (KPI) report is in for May! As a reminder, this new KPI system came from the SIP that we previously mentioned that Millie wrote to give the Ambassadors more structure in their role and maintain accountability.

So here’s the KPI report for May 2022:

SIPs

  • SIP-241: KPI-based Ambassador Mandate (update)
  • SIP-242: OP Token Distribution

AIP signal poll passed

— Applied as delegates for two DAOs:

Governance Power

  • 1,855,598 OP delegated from 1,635 delegators (as of June 6th)

Referrals

  • Made introduction between Velodrome and the Treasury Council for launch partners (Treasury Council now has a veNFT representing 1% of VELO emissions, credits to Mojo)

Spartan Spaces & L222 Tuesdays

Great job this past month, Ambassadors!

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SIP/SCCP status tracker:

SIP-239: Liquidator Rewards Restitution, Status: implemented

SIP-246: Upgrade Collateral Short, Status: implemented

SIP-235: Update Issuer Modifier, Status: approved

SIP-238: Only allow token transfers via their proxies, Status: draft

SIP-240: Update Liquidate Amount, Status: approved

SIP-243: Deprecate sDEFI, Status: approved

SIP-245: Changes to burn during minting cooldown, Status: rejected

SIP-241: KPI based Ambassador Mandate (update), Status: SC vote pending

SIP-242: OP Token Distribution, Status: implemented