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SNXweave Weekly Recap 7

SNXweave Weekly Recap 7

September 24, 2021

The following post contains a recap of news, projects, and important updates from the Spartan Council and core contributors this week, as well as some performance highlights of those involved in governance. Election coverage is also discussed.

Present at the September 21, 2021 Spartan Council Weekly Project Sync:

Spartan Council: Bojan, Brian, Danijel, Kain, Spreek
Core Contributors: Afif, Daniel, Darius, David, Jordan, Justin, Mike, Rafa

First off, the Mirfak release was completed and Wezen went out this week! So all low-volume and inverse synths have officially been deprecated on L1.

As for shorting on L2, Justin says this SIP is a big focus right now, as it is critical for Lyra. The hope is to get L2 Shorting pushed through in the next week or so, and to have it up on Kovan very soon. This will allow for shorting of LINK, ETH, and BTC, which will be a big improvement.

The next release is Kaus, where we’ll see the Atomic Exchange Function go out. This SIP is getting close, but Kaleb says he’s a bit concerned that there are still opportunities for risk-free profit. The plan is to put together a sandbox where Kaleb can do simulated trades and find exploits against the exchange function.

Both of the remaining Kwenta SIPs (177 and 178) were approved this week, each with 7 votes in favor (Jackson, Brian, Kain, Synthaman, Bojan, Spreek, Danijel) and none against. So we should see some Kwenta updates shortly.

Also approved this week was the Wrappr Factory SIP, with six votes in favor (Synthaman, Jackson, Brian, Danijel, Spreek, Bojan) and none against. The code for this SIP is just about ready to go out, but Daniel and Mark are still figuring out the frontrunning risk with it.

While on the topic of frontrunning — SIP-181 for Simulated Liquidity, which was presented last week by Afif, was also approved this week with six votes in favor (Synthaman, Jackson, Brian, Danijel, Spreek, Bojan) and none against. This SIP aims to use simulated liquidity in order to prevent Synthetix exchanges from being exploited. This is an approach to mitigate against frontrunning opportunities by preventing how much someone can trade before they get slippage, and would essentially be the end of infinite liquidity.

Afif is also proposing SIP-184 for Dynamic Exchange Fees, which is still in draft. This SIP will also tackle frontrunning risks by utilizing a backward-looking fee component that will address frontrunning by using a fee system that continuously responds to dynamic market conditions. This SIP is scheduled to be presented next week, along with the Debt Shares SIP.

Lastly for SIP updates, Synthetic Futures is coming along nicely and there will hopefully be a test net up soon. However, there is still some back and forth going on with CryptEcon regarding how to best tighten up the funding rate.

And in case you missed it, the voting period opened this week and will close at 0:00 UTC September 30th. Be sure to cast your ballots before then for the Spartan Council, Treasury Council, ambassadorDAO, and grantsDAO, and check out SNXweave’s panel-style podcasts below with this epoch’s Spartan Council candidates!

Spartan Council Panel podcast pt. 1

Spartan Council Panel podcast pt. 2

SIP/SCCP status tracker:

SIP-169: Deprecate Low Volume L1 Synths, Status: released on Wezen

SIP-158: Deprecate Inverse Synths, Status: released on Wezen

SIP-135: L2 Shorting, Status: approved

SIP-120: Atomic Exchange Function, Status: approved

SIP-182: Wrappr Factory, Status: approved

SIP-181: Simulated Liquidity for Synthetix Exchanges, Status: approved

SIP-80: Synthetic Futures, Status: feasibility

SIP-184: Dynamic Exchange Fees, Status: draft

SIP-177: Formalize Kwenta TreasuryDAO, Status: approved

SIP-178: Formalize Kwenta Interim Council, Status: approved