SNXweave Weekly Recap 83

SNXweave -

April 5, 2023

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 March 29, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Adam, Cavalier, SeliniCapital (representing Jordi), TerraBellus
Core Contributors: Afif, Bex, Darius, David, joey, jz, Mike, Nikita, noah

For the V3 core system, the CCs are currently working through implementation on SIP-318 (Market-specific Minimum), which proposes allowing custom minimum liquidity ratios to be set for specific markets via SCCP. They are also working on getting an IPFS cluster set up to host front ends and deployment data.

For markets, the final audit report is back from one of the audit companies — this was mostly small issues though, so there were no major surprises. The CCs are now working on processing feedback as quickly as possible to send it back to them for review.

The other audit company will likely begin the spot market audit sometime this week, so expect spot markets to likely be ready by the end of April and all of the V3 resources to then shift to Perps V3.

Speaking of Perps, the first round of audit feedback on the upcoming Perps V2 release is currently being processed by Kaleb, Leo, and David, and the new liquidator behavior is being tested for larger liquidations. The CCs are also exploring improved data pipelines to enable more comprehensive stats dashboards as well as internal risk analytics.

In case you missed it, ARB was launched on Synthetix Perps! Here’s a quick update on how this market has been doing since it went up last week:

  • There was $5–10 million in daily volume in the first few days
  • Lower maker fees and higher funding rate tweaks have been very successful at keeping markets balanced at all times (better for stakers), and
  • Those tweaks have dramatically improved the arbitrage behavior

There was also a SIP presentation last week — Noah presented SIP-320 for Minimum Collateral Delegation Duration, which proposes adding functionality that allows markets to control the time before collateral delegation can be modified. This is essentially V3’s version of the burn lock that is meant to eliminate the LP front running attack vector (i.e. LP backs a market, collects a large portion of fees, then stops backing the market and is essentially collecting the reward without taking the risk).

In V2, LPs must stay exposed to the market they are backing for a full week in order to be eligible for rewards. Terra asked if unrealized PnL is calculated into stakers’ positions, and db said yes — stakers accrue debt as the value of open positions change. And this could be set on a per-market basis based on the volatility of the debt, unlike V2X where the one week burn lock is based on reward payouts.

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SIP/SCCP status tracker:

SIP-318: Market-specific Minimum, Status: approved (vote still active)

SIP-317: Spot Markets (V3), Status: approved (vote still active)

SIP-320: Minimum Collateral Delegation Duration, Status: approved (vote still active)