Synthetix V3 Migration: Treasury Council Initiates Transition

The Treasury Council has begun migrating to V3, as detailed in SIP 304, marking the first phase of the transition to Synthetix V3. Ethereum Mainnet (L1) staker migration to V3 is expected to open in 2-3 weeks. This update introduces significant changes to the ecosystem, particularly in how liquidations are handled.

Key Changes for L1 Stakers on V2X

Immediate Liquidations: SNX staker liquidations will now occur immediately when a position crosses the liquidation ratio (120% as of Jul 25th). The previous 8-hour delay has been removed.
New Liquidation Process: When a staker is liquidated on Ethereum, their debt and SNX are transferred to V3.
V3 Staker Absorption: V3 stakers will absorb both the liquidated SNX and the associated debt. Currently, the only V3 staker is currently the Treasury Council.
Direct SNX Distribution: Liquidated SNX will be distributed directly to stakers rather than going into escrow and automatically staked.

Ongoing Interactions

The V2X and V3 systems of Synthetix will continue to interact during the transition:

V2X debt increases will affect the V3 legacy market.
Cross-chain synthesis between Ethereum and Optimism will remain in place.

Upcoming Changes in Phase 2 & Future Actions for Stakers

Suspension of minting/staking/issuing sUSD on Ethereum L1
Suspension of self-liquidation & account merging on Ethereum L1
Implementation of sUSD to V3 sUSD bridge.
Suspension of debt bridge between L1 and L2

Important Notes for SNX Stakers

While SNX can still be moved to L2, any associated debt must be repaid first.
No immediate action is required from SNX stakers at this time.
Detailed migration instructions will be provided before Phase 2 begins. Users will not be force migrated, users will have the option to do so once a UI is released.

Stay tuned for further updates and instructions as we progress through this transition to Synthetix V3. Join the Synthetix Discord to join the conversation.