SNXweave Weekly Recap 57
September 21, 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 September 15, 2022 Spartan Council Weekly Project Sync:
Spartan Council: Afif, Ale, Burt, Danijel, Kain, ksett, TerraBellus
Core Contributors: Bex, Cavalier, db, KALEB, Matt, Max, Mike, noah, Steve, sunny
First off — we hope to see everyone at the Election Panel tonight! In case you missed the event details, your Spartan Council nominees will be joining the governance stage today at 8pm UTC to discuss their candidacy and answer community questions about their vision for Synthetix. See you there!!
Now for the news…the merge last week went very smoothly and the current V2X priorities remain the same. The CCs have, however, requested to freeze the V2 scope after SIPs 252, 267, and 268 are released. As a reminder, these SIPs are for liquidating escrow entries, the direct integration, and the curve integration (respectively). The SIP to incorporate dynamic fees into the atomic swap methodology will also be included in this remaining V2 scope, but everything else will be moved to V3.
And speaking of V3, the draft implementations for SIPs 300–307 are complete. The auditors have now started reviewing SIPs 302 and 303, which will serve as a pre-review since these SIPs still need to be presented and voted on for approval.
Noah also gave a brief overview of V3, explaining that the design begins from a basic collateralized debt position structure. The stablecoin will now be called “snxUSD” to distinguish it from sUSD, and one of the main goals of the design is the ability to accept different forms of collateral, other than just SNX. A rewards manager will also allow for more flexibility in fee distribution in this model.
Terra asked what big milestones the community should be looking out for on the path to V3. Noah said the two major milestones would be having a draft implementation on testnet (which will hopefully happen within a month), and deploying to Mainnet once everyone is happy with performance.
In other news, the new staking dApp UI is coming along well, as many of you may have already noticed some speed and bug improvements. AND the SCCP to add 2 more seats to the Ambassador Council has passed! This has been implemented, so there are now 5 Ambassador seats open for the current election.
Lastly, the Spartan Council had a discussion regarding SCCP-234, which addresses an issue in SNX Inflation that was released on September 7th. This SCCP proposes temporarily cutting SNX issued as inflation on L2, and redirecting it to L1 in response to an L2 over-issuance/L1 under-issuance that happened at the end of the fee period.
Ksett asked about the significance of the 3-week timeline in the SCCP, and Kaleb clarified that there are tradeoffs and 3 weeks was the quickest way to make the correction without materially reducing the incentive to be on Optimism. There was a lot of objection to making this more complicated than it has to be because it takes resources away from impactful deliveries, like Debt Migration and V3. Towards the end of the discussion, there was some consensus to put this on hold and focus on bigger deliveries.
Grants Council
Present at the September 15, 2022 Grants Council meeting:
Grants Team: ALEXANDER, CT, cyberduck, JVK, Mike
In Grants Council updates, the NFT website is progressing nicely. The team is overall very satisfied with the design work that Jade has done for the website, and they’ve given her some minor feedback to incorporate. They are currently in the process of brainstorming name ideas for the project.
As for the NFT treasury, there are still several rules that need to be hashed out. The team is trying to decide where the responsibility to manage the fund should be, and whether it should be a dedicated multisig that is separate from the Grants Council wallet.
There is also a new initiative in the works — the Spartan Score project. Duck met with the Degen Score team and they are interested in helping create a spartan score. This would be their first project on Optimism, so they are very excited. The idea would be that any participation within the Synthetix community could increase your spartan score.
Lastly, Kwenta is requesting an increase in the amount of volume eligible for fee rebate (the original proposal detailed a refund on fees accumulated on up to $1 million in notional volume). The Grants Council has 50,000 OP allocated to this project and should be able to accommodate the request.
Ambassador Council
Present at the September 13, 2022 Ambassador Council meeting:
Ambassadors: mastermojo, Matt, MiLLiE
In Ambassador Council updates, the team hosted another Spartan Space last week, this time with Granary Finance (which is another Byte Mason product). We got to hear from Justin, who explained that Byte Masons began in late 2020 as an Ethereum security mentorship group, where mentees slowly became business partners which led to the launch of reaper.farm.
He went on to explain that Granary itself is a lending platform focused on providing the best value for the customer. They are more focused on the community and lowering rates, and less focused on profit for the protocol — essentially building Granary with the same ethos as a DeFi credit union.
They chose to pursue Optimism in addition to Phantom because the tech and infrastructure are great, and there’s a lot of backing on Optimism. And being so close to ETH means it’s a less risky place to deploy.
The Ambassadors asked what Granary’s plans are for distinguishing themselves from AAVE and other DeFi lending markets in the long-term. Justin explained that their nearest-term differentiator is their frontend. They’ve built a UX design that is much more engaging and informative for the users, and they’re also working on enhancing dashboard and analytic functionality. The protocol’s number 1 priority is to increase utilization of underlying assets and increase capital efficiency for end users.
And speaking of assets, Granary is one of the few places to deposit and borrow OP tokens on Optimism. As for their other offerings, sUSD is now supported on Granary, and their focus going forward will be BTC, ETH, and key stablecoins.
And for the question everyone is always wondering…wen token? Well, they are hoping to launch a token in 8 months! And there might be an airdrop soon…so be on the lookout for that. Right now, they are exploring which chains to launch their future token on, with the ultimate goal to make it as Sybil-resistant and as fair as possible.
Catch the recording here if you missed the call!
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SIP/SCCP status tracker:
SIP-252: Liquidation of SNX Escrow, Status: approved
SIP-267: Direct Integration, Status: approved
SIP-268: Curve Integration, Status: approved
SIP-272: Atomic Swaps — Dynamic Fees, Status: approved
SIP-300: Synthetix V3, Status: draft
SIP-302: Pools (V3), Status: draft
SIP-303: Markets (V3), Status: draft
SIP-304: Liquidations (V3), Status: draft
SIP-305: Staking Incentives (V3), Status: draft
SIP-306: V3 Migration, Status: draft
SIP-307: Router Proxy Architecture (V3), Status: draft
SCCP-230: Increase number of serving Ambassadors, Status: implemented
SCCP-234: Addressing an Issue in SNX Inflation Released on 07/09/2022, Status: draft
SIP-237: Debt Migration, Status: draft