July 3, 2024
The following post contains a recap of news, projects, and important updates from the Spartan Council, Core Contributors, and Ambassador Council from last week.
👉TLDR
Arbitrum rollout: Adding USDe as LP collateral, doubling LP incentives to 20,000 ARB/asset/week, and launching stablecoin incentives for USDx.
LP app: In the process of getting a mobile UI, a better rewards distribution interface, and corrected APYs.
L1 migration: Getting a final audit review for the Legacy Market release and Treasury Council migration to V3.
Cross-chain election system: SIP has gone into audit.
Meta-governance SIP discussion: Burt questioned how the decision is made to classify SIPs as meta-governance since Danny recently proposed a SIP that would eliminate the SIP presentation requirement for new listings.
Kaleb reminded everyone that meta-governance SIPs are any SIPs that alter the way governance happens, and he believes that would apply to Danny’s proposal.
However, the decision is ultimately up to the current council.
SIP-395: P2P Settlement Strategy presentation recap
SIP-396: List ONDO, PEOPLE, IO, ENS, ZK, AR, ZRO, and AEVO perps presentation recap
SIP-394: Delegate governance power from collateral token deposited in Synthetix presentation recap
Spartan Council and SIP updates
Present at the June 26, 2024 Spartan Council Weekly Project Sync:
Spartan Council: Afif, Cavalier, cyberduck, Jackson, Millie, ml_sudo, Snax Frens, snxmaximalists
Core Contributors: Jade, Kaleb, Marcus, Matt, Steve, troy
Starting out with some highlights from last week — the Arbitrum rollout is adding USDe as LP collateral, doubling LP incentives to 20,000 ARB/asset/week, and also launching stablecoin incentives for USDx. The LP app is also in the process of getting a mobile UI, a better rewards distribution interface, and corrected APYs. Next, the L1 migration is getting a final audit review for the Legacy Market release and Treasury Council migration to V3, and the cross-chain election system SIP has gone into audit.
In other discussion, Burt brought up the topic of how the decision is made to classify SIPs as meta-governance. Danny recently proposed a SIP that would eliminate the SIP presentation requirement for new listings. There was some disagreement as to whether or not this was a meta-governance SIP or not. If so, it would require 7/8 votes to pass rather than the usual majority of 5 votes.
Kaleb reminded the group that meta-governance SIPs are any SIPs that alter the way governance happens, and he believes that would apply to Danny’s proposal. He also added that the determination of whether something is meta-governance or not is really up to the consensus of the current council (in the event that it’s not immediately clear). He suggested that a SIP be written to further clarify the distinction if any SC members are uncomfortable with the way those decisions are reached.
Next, there were a few SIP presentations last week, so let’s go over each of them:
SIP-395: P2P Settlement Strategy
Presented by Afif, this proposal outlines the protocol upgrades needed to support certain types of limit orders.
The proposal would implement a P2P order settlement strategy for Synthetix perps markets, which parse signed maker/taker messages.
Afif explained that much of the technical details have been left out of the SIP and will be fleshed out once it has been approved by the Spartan Council.
He also mentioned that the project is partially funded by an Optimism grant that was awarded to Synthetix this year to build a best-in-class Perps DEX.
ML_sudo asked what impact this would have on the current settlement process.
Afif answered saying there might be a scenario where the bulk of the trading begins to happen using this new settlement design.
This would mean less LP would need to be available to back trading activity.
He went on to say that there may be a path where some of the P2P marketmaker fees could be shared with LPs so that enough incentive still exists to keep them there even if they are not collecting day-to-day trading fees.
Kaleb asked about potential denial of service (DDoS) attacks.
Afif explained that this may be an issue in a single-point-of-failure system, but the goal here would be to have multiple relayers (at the very least all of the integrators).
He added that another backstop for this type of attack is that the contracts would still be active, as they are now, if for some reason there was no access to the off-chain P2P system.
Because of these backstops, it’s highly unlikely that a DDoS attack would even be attempted because it would be extremely difficult to materially impact users.
SIP-396: List ONDO, PEOPLE, IO, ENS, ZK, AR, ZRO, and AEVO perps
Next, GUNBOATs presented this SIP to list Ondo Finance, ConstitutionDAO, IO.NET, Ethereum Name Service, ZKsync, Arweave, LayerZero, and Aevo Finance token perps on Base.
All have Pyth feeds and a Binance Perp market.
SIP-394: Delegate governance power from collateral token deposited in Synthetix
GUNBOATs also proposed this SIP, which would give Synthetix the ability to delegate governance power from tokens deposited in the system to any address set by governance.
He explained that since Synthetix is now accepting multiple collateral types, there may be an opportunity to provide users with a one-click delegation option.
This could be directed to any address, but ideally would be the AC multisig since they are the body that is most active in other protocols’ governance.
Kaleb suggested the CCs take a look at this SIP from a feasibility perspective before setting it up for a vote.
All of these SIPs are still in draft.
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SIP/SCCP status tracker:
SIP-395: P2P Settlement Strategy
SIP-396: List ONDO, PEOPLE, IO, ENS, ZK, AR, ZRO, and AEVO perps
SIP-394: Delegate governance power from collateral token deposited in Synthetix
In conclusion, the Spartan Council and Core Contributors have been actively working on various updates and projects to enhance the ecosystem and governance of the platform. With ongoing discussions and presentations of SIPs, the community continues to evolve and adapt to meet the changing needs of users and stakeholders.
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