July 24, 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
L1 Migration to V3: Legacy markets were launched on L1 last week! The Treasury Council was the first account to migrate and will continue to back sUSD liquidity on V3, as well as the new L1 Perps Market, which will help scale the new product. Second phase: Migration will be open for all stakers, which will change how liquidation happens (see below for details). There will also be a suspension of sUSD minting and staking on V2X on Ethereum to encourage stakers to move over to V3, the bridge to move debt from V2X on L1 to L2 will be suspended, and there will be a bridge available to swap sUSD for the new snxUSD.
SIP-398: Chainlink Data Streams for Synthetix V3 on Arbitrum presentation recap (see below)
Spartan Council and SIP updates
Present at the July 17, 2024 Spartan Council Weekly Project Sync: Spartan Council: Afif, cyberduck, Jackson, Millie, ml_sudo, Snax Frens, snxmaximalists Core Contributors: 0xMithrandir, 0xrobin, Fred, jz, Kaleb, meb, Mike, pixelperfect, troy
Last week the team launched the legacy markets on L1! This means there is now a new market connected to V2X (similar to the Spartan Council market on Base) that will hold the Treasury Council position. The TC was the first account to migrate and will continue to back sUSD liquidity on V3, as well as the new L1 Perps Market, which will help scale the new product.
In the second phase, likely ready in the next two weeks, migration will be open for all stakers. This will change how liquidation happens — let’s get into how:
- Currently there is a 6-hour waiting period after positions are flagged for liquidation
- In the new system, liquidations will happen immediately and are socialized to all V3 staking positions (V2X will no longer be a part of the socialized liquidation pool)
- Self-liquidation will no longer be available in V3
- Liquidation rewards will no longer be escrowed either — instead, stakers who receive those rewards will be able to sell the SNX or use it to strengthen their c-ratio
Also in the second stage, there will be a suspension of sUSD minting and staking on V2X on Ethereum to encourage stakers to move over to V3. The bridge to move debt from V2X on L1 to L2 will also be suspended, and there will be a bridge available to swap sUSD for the new snxUSD.
Next, there was a SIP presentation last week: SIP-398, presented by Raoul from Chainlink, which proposes integrating Chainlink Data Streams into the Synthetix V3 deployment on Arbitrum to bolster the protocol’s security and performance. Let’s recap the presentation:
SIP-398: Chainlink Data Streams for Synthetix V3 on Arbitrum
- Raoul explained that V3 was designed to be oracle agnostic and this SIP proposes adding the option for integrators to choose between Chainlink or Pyth
- He suggested a test phase where Synthetix would integrate the Chainlink oracle on 10 markets on Arbitrum to further assess performance compared to alternative providers
- Chainlink Data Streams boasts attributes such as reliability, accuracy, security, and low latency
- Chainlink has offered to reduce the integration burden for Synthetix CCs
- The cost (paid to Chainlink) will be 1.5% of the fees generated
- Chainlink is working towards faster price feed spin-up and providing full API access for Synthetix ecosystem
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SIP/SCCP status tracker:
SIP-398: Chainlink Data Streams For Synthetix V3 on Arbitrum, Status: draft
Thank you for reading through the updates from the Spartan Council, Core Contributors, and Ambassador Council. Keep an eye out for more news and developments in the DeFi space by visiting DeFi Daily News for trending articles. Stay informed, stay ahead!
