May 31, 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 24, 2023 Spartan Council Weekly Project Sync:
Spartan Council: Burt Rock, cyberduck, Danijel, dsacks, Jackson, ml_sudo
Core Contributors: Afif, KALEB, Matt, Mike, noah, Regina, sunny, troy
The V3 spot market alpha is live! However, the CCs plan to do a bit more quality assurance and testing before sharing it too widely, and Iosiro is still working on the security audit, however they should be finished any day now. The next priority for the CCs will be Perps V3, since Perps is the flagship product for Synthetix right now. Until Perps V3 is ready for launch, there won’t be any reason to migrate the ‘Legacy market,’ so what is launched of V3 will be a free-standing product that is essentially in test mode.
The proof of concept for cross-chain synthesis and teleporters is also ready for testnet, the CCs are just waiting on some finalization from Chainlink to begin testing.
As for Perps V2, several new markets were deployed last week! The full list of new perpetual markets includes PEPE, SUI, BLUR, XRP, DOT, FLOKI, and INJ. During the Spartan Council and Core Contributor meeting last week, Kaleb wanted to take some time to address how the parameters are determined for new markets — the most important consideration being the size of the market (meaning, how much liquidity will be available and the skew scale).
The size of the market is determined by how much spot liquidity is available elsewhere since a larger derivative market would open the door to potential manipulation. The skew determines how much slippage is incurred on a given transaction, which is also determined based on market conditions outside of perps.
Next, Kaleb brought up the liquidation buffer and liquidation premium multiplier, which are set in such a way that protects the debt pool. During periods of high volatility, the price may move significantly from the time a position is flagged to when the liquidation occurs.
The liquidation buffer prevents that price action from negatively affecting the debt pool during the time required for the liquidation, and the liquidation premium multiplier increases the cost to open a position as that position approaches the maximum amount of leverage allowed for the market.
Lastly, Jackson brought up the fact that it might be valuable for the Spartan Council to put together their position on the Treasury Council’s new proposal (Kain’s blog post). Burt mentioned that he had reviewed the proposals and would be releasing a proposal regarding trading rewards soon, as he is hoping for coordination between Synthetix and Kwenta on any upcoming programs.
Danijel suggested a sync between all of the DAOs every other week to allow each council an opportunity to update the rest of the governance body. This idea stemmed from the fact that while any of Kain’s proposals could be executed by the TC alone, a few of the line items require codework that would need SC approval.
Present at the May 25, 2023 Grants Council meeting:
Grants Team: Alexander, CT, synthquest
In Grants Council updates, Sunny is looking into hosting for the perps landing page and Discord bots, and is currently reviewing Joey’s feedback for the perps landing page. Next, the eth.limo public goods payment was made, the trading competition was completed, JVK is continuing work on the governance doc, and the team is finishing up the Flipside data project. Lastly, the new Discord bots are up and running — including the sREKT bot which is back on Twitter — and the SNX Whales bot will be finished soon.
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SIP/SCCP status tracker:
SIP-2014: Adding PEPE, SUI, and BLUR to Synthetix Perps V2, Status: implemented
SIP-2015: Add XRP, DOT, TRX, FLOKI and INJ to Perps V2, Status: implemented