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Synthetix Perps Optimism Trading Incentives - September Extension Update

Up to 300,000 weekly OP will be awarded to traders of Synthetix Perps across any integration partners starting April 19th at 0:00 UTC

Synthetix Perps Optimism Trading Incentives - September Extension Update
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UPDATE SEP 8TH 2023: Synthetix Treasury Council extends OP rewards trading program for five additional weeks, 100K OP per week for 5 weeks, capped at fees generated. First epoch begins on Sep 13th at 0:00 UTC.

The Synthetix Perps Optimism Trading Incentives program, based on SIP-2003, is set to begin on April 19th at 0:00 UTC. This SIP was a non-binding vote by the Spartan Council to signal support for the Treasury Council in distributing the remaining OP held. As such, the parameters of the original SIP have changed and should be referenced here. The protocol may update this distribution structure in the future with advanced notice to traders and stakers. The program aims to encourage trading activity for Synthetix Perps on Optimism by allocating a portion of the protocol's phase 0 distribution as trading rewards.

Reward Structure

The trading incentive program rewards 300,000 OP in weekly Synthetix Perps trading rewards for 17 weeks after a three-week ramping period. The weekly trading epochs will be structured as follows:

- Week 1: 10,000 OP

- Weeks 2-3: 100,000 OP

- Weeks 4-20: 300,000 OP (estimated end date week of Sep 6th)

- Weeks 21-26: 100,000 OP per week, capped at fees generated, so if the protocol earned 50k in fees, then 50k in OP would be paid out. First epoch begins Sep 13th at 0 UTC

UPDATE: Week 1 rewards have reduced from 50,000 OP to 10,000 OP and weeks 4-20 have increased from 200,000 OP to 300,000 OP.

UPDATE: Added Week 21-26 after Synthetix Treasury Council

Trader Score Calculation

Users will be assigned a trader score based on their total trading fees paid. *This calculation does not count execution fees.

`rawScoreÔÇÖ = tradefeesPaid

The trader score will then be calculated, including a staked SNX (Synthetix) multiplier:

`traderScore = rawScore * stakedTierMultiplier`

Please Note: Only OffChainDelayedOrders processed on participating integrators are eligible for OP rewards. Please ensure your frontend integrator's participation before trading.

Staked SNX Multipliers

The following tiers define staked SNX multipliers (Note: staked SNX tiers are now outdated, please see Update below)

0-2499 SNX : 1.00
2500 - 5,000 SNX: 1.05
5001 - 10,000 SNX: 1.075
10,001 - 20,000 SNX: 1.1
>20,001 SNX: 1.15

UPDATE: Due to challenges with on-chain calculations and the fluctuating price of SNX and debt shares, rewards calculations have been altered to be based strictly on total debt shares value outstanding at snapshot, which approximate the original staked SNX tiers above. The new multiplier tiers will be based on sUSD debt at snapshot as outlined here:

0-$1,500: 1.00
$1,501 - $3,000: 1.05
$3,001 - $6,000: 1.075
$6,001 - $12,000: 1.1
>$12,000: 1.15

Please ensure that you have staked your desired amount by the snapshot on Wednesdays UTC.

Reward Distribution

Each trader, using a participating integrator, will then earn a pro-rata share of the total weekly rewards based on their trader score. The Synthetix Treasury Council will distribute OP weekly basis to a designated contract for integrators to connect with and enable claims using their UI.

Please Note: Only OffChainDelayedOrders processed on participating integrators are eligible for OP rewards. Please ensure your frontend integrator's participation before trading.

Incentive Program Mechanics

1. At the end of each trading epoch, integrators will send a list of trader addresses to smart contract (SC) wallet mappings.

2. Synthetix Core Contributors will then perform the necessary calculations (see above), checking trader addresses for SDS balance to confirm the estimated staked SNX multiplier.

3. A list of addresses and OP amounts to send will be generated.

4. Integrators will receive OP to distribute to its smart margin mappings. Any wallets that aren't part of another integrator's share will be distributed by Kwenta.

Rewards will be distributed from the Synthetix OP Trading multisig - 0x5248BE8B6C9b7257695275eBD7c3918326151ae6

Participating Integrators: Kwenta.eth.limo, Polynomial.fi, Decentrex.com and dHEDGE.org. Any additional perps integration partners launching during this program will be eligible for the OP incentives. Please confirm your frontend integrator's participation before trading.

Conclusion

The Synthetix Perps Optimism Trading Incentive program aims to incentivize activity on Optimism and boost liquidity for Synthetix Perps. Future blog posts and tweets will be made to announce the official beginning of this incentive program. The Synthetix Treasury Council reserves the right to adjust these terms at any time. Have any questions? Head to the Synthetix Discord to learn more.