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SNXweave Weekly Recap 90

SNXweave Weekly Recap 90

May 24, 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 May 17, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Cavalier, cyberduck, Danijel, dsacks, Jackson, ml_sudo
Core Contributors: Afif, db, joey, KALEB, meb, Nikita, Rafa, sunny, troy

Getting right into it — the main priority for V3 right now is quality assurance and testing on the V3 spot market. Iosiro is looking at the code and the preliminary audit from Open Zeppelin is complete, and Noah said the CCs are loosely targeting this week for the spot market deployment with the ETH synth. The V3 docs should also be shareable by the time the spot market is live, so the next step would then be to bootstrap V3 with some liquidity to ensure everything functions as intended with real money. Lastly, once teleporters are wrapped up, which is still pending CCIP release, the CCs will then be able to shift all of their focus to Perps V3.

Kaleb also gave an update last week on SIP-2013, for the Dynamic Gas Fee Module. It launched last week and is working as expected! Prior to implementation, it was not out of the ordinary to see 40–50 order cancellations in a week, and that has been dropped to ZERO, by providing more up-to-date incentives for execution by keepers.

The Optimism Bedrock upgrade date was also announced last week — it will occur with some downtime on June 6th, and a SIP for this is coming soon. This will fundamentally alter how gas prices are set on Optimism, so the CCs are drafting a new SIP to account for the changes.

And speaking of the Optimism Bedrock, the Spartan Council and CCs had a pretty extensive discussion during their meeting last week about the details of the release. Regarding the previously mentioned downtime, the current plan, pending governance, is to pause the opening of new positions two days before the scheduled release date (June 6th) so that users would only be able to close positions during that time.

Danijel questioned whether this length of downtime was necessary, and after a lot of discussion, everyone came to the conclusion that it is probably necessary. For instance, during the last period of downtime, a highly leveraged position that was very close to liquidation was allowed to carry through the downtime. Liquidations could not happen during this time, however, so the position went beyond its liquidation threshold and caused a $1 million loss to the protocol.

Afif suggested possibly lowering leverage to 10x beginning a week before the scheduled release, justifying it by saying that despite this causing a break in the momentum, there will be lower fees, faster settlements, and an overall crisper user experience that should get the momentum going again after everything resumes.

Lastly, the OP Reward Program was discussed, with Afif pointing out that volume is sustaining a much higher level ever since the rewards program began. In general, the program amounts to a roughly 50–60% fee rebate for traders and, overall, there seems to be a lot of organic arbitrage happening. This is, of course, only the first week of the full-scale rewards, so there will hopefully be another big push following the release of bedrock.

Grants Council

Present at the May 18, 2023 Grants Council meeting:
Grants Team: Alexander, CT, JVK, sunny, synthquest

The Grants Council discussed the following topics at their meeting last week:

  • Budget goals
  • Bots, hosting, and where the GC will have control
  • NTF project — no notable changes here from last week

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SIP/SCCP status tracker:

SIP-2013: Dynamic Gas Fee, Status: implemented