August 21, 2024
The following post contains a brat recap of news, projects, and important updates from the Spartan Council, Core Contributors, and Ambassador Council from last week.
👉TLDR
L1 Perps: Released to testnet last week. Integrator outreach was started to determine who will support Perps frontend and Vault functionality.
Base update: stataUSDC vault is live! The flow is being updated to accept USDC and allow withdrawals in USDC before broader communications.
V3 migration: In progress — as of Monday, self-liquidations for SNX stakers on Ethereum mainnet have been disabled. If your c-ratio is approaching the liquidation threshold, you will need to burn back to a 500% c-ratio in order to avoid an automated liquidation. No actions are yet required by stakers to migrate to V3 and any updates to this timeline will be announced soon — migration is likely to be enabled this week.
Synthetix Perps launch on Arbitrum: CCs are waiting on the LTIP council to respond to the extension request. Multi-collateral margin support is in the final remediation stage, as pull requests are in review and tests are being written. The Sepolia release should be on Mainnet this week.
Governance V3: Released to testnet, aiming for Mainnet this week. Proposed election schedule:
Nominations Start: Friday, August 30
Voting Starts: Thursday, September 5
New Epoch Starts: Sunday, September 15
Increasing LP fee share portion in V3 discussion: TLDR — the current distribution is 40% LP, 40% protocol (buyback and burn), and 20% integrator. Millie proposed tweaking the LP and protocol percentages to further incentivize LP activity, adding that the yield being offered on stablecoins at other protocols (Aave for example) is quite high now which is attracting some of the potential LP supply. Fifa pointed out that there are other levers at the Spartan Council’s disposal to increase the amount of fees that LPs see — specifically, raising fees or reducing skew scales. Matt suggested waiting for some of the yield-generating collateral types to come online to see how that impacts TV. (see below for full conversation details)
SIP-384: Launch Synthetix Chain (SNX Chain) Using the OP Stack for V3 Governance presentation overview (see below for recap)
SIP-403: List RENDER on Synthetix Perps presentation overview (see below for recap)
Spartan Council and SIP updates
Present at the August 14, 2024 Spartan Council Weekly Project Sync:
Spartan Council: Cavalier, cyberduck, fifa, Jackson, Millie, ml_sudo, Snax Frens, snxmaximalists
Core Contributors: Fred, Kaleb, Matt, meb, Mike, Mithrandir, moss, Mr.X, robin, Steve, troy, wasp
Starting off with the highlights from the week, L1 Perps was released to testnet last week. And integrator outreach started last week as well to determine who will support Perps frontend and Vault functionality.
As a base update — stataUSDC vault is live! The flow is being updated to accept USDC and allow withdrawals in USDC before broader communications.
The V3 migration is also in progress — as of Monday, self-liquidations for SNX stakers on Ethereum mainnet have been disabled. So if your c-ratio is approaching the liquidation threshold, you will need to burn back to a 500% c-ratio in order to avoid an automated liquidation. No actions are yet required by stakers to migrate to V3 and any updates to this timeline will be announced soon — migration is likely to be enabled this week.
For the Arbitrum scaleup, the CCs are just waiting on the LTIP council to respond to the extension request — at worst, they will just have to give the remainder of the grant back. And multi-collateral margin support is in the final remediation stage, as pull requests are in review and tests are being written. The Sepolia release should be on Mainnet this week.
Governance V3 was also released to testnet, and is aiming for Mainnet this week as well. The proposed election schedule is as follows:
Nominations Start: Friday, August 30
Voting Starts: Thursday, September 5
New Epoch Starts: Sunday, September 15
In other discussion, Mille brought up the possibility of increasing the LP portion of the fee share in V3. The current distribution is 40% LP, 40% protocol (buyback and burn), and 20% integrator. He proposed tweaking the LP and protocol percentages to further incentivize LP activity. When the original fee sharing structure was proposed, there was an understanding among SC members that it could be revisited and changed if necessary. He highlighted a potential concern that the TVL has dropped significantly from the $30 million peak, therefore increasing the portion of fees directed towards LP could bring some of that back.
Millie argued that of the three parties receiving fee distributions, the LPs are taking on the greatest risk and should be compensated accordingly. He added that the yield being offered on stablecoins at other protocols (Aave for example) is also quite high now, which is attracting some of the potential LP supply. Fifa pointed out that there are other levers at the Spartan Council’s disposal to increase the amount of fees that LPs see — specifically, raising fees or reducing skew scales. Matt suggested waiting for some of the yield-generating collateral types to come online to see how that impacts TV.
There were also a couple of SIP presentations last week, so let’s briefly review them:
SIP-384: Launch Synthetix Chain (SNX Chain) Using the OP Stack for V3 Governance
Presented by meb, this SIP is a more limited version of the original proposal to launch an SNX ChainIt would initially just serve as the home for Synthetix V3 governanceThe plan is to leverage Synthetix Chain as the mothership of Synthetix governance and have it operate independently alongside the existing deploymentsThis would address current limitations in the election system that require votes to be cast from Optimism MainnetWormhole crosschain messaging would facilitate the voting/messaging across any network V3 is deployed onThe plan is to have this ready for the upcoming election (SNX chain is already live on mainnet)
SIP-403: List RENDER on Synthetix Perps
Millie presented this quick SIP, explaining that RENDER was previously on Synthetix Perps as RNDR before the token migrationWith Pyth adding the new ticker, the market can start trading again
Ambassador Council
Present at the August 14, 2024 Ambassador Council meeting:
Ambassadors: dsacks, GUNBOATs, Mastermojo, Matt, Westie
Last but not least, in Ambassador updates, this past week the Council discussed two important Kwenta votes: GMX integration and Gains Network integration. They voted no on these two proposals. They also discussed future Spartan Spaces, the upcoming Optimism Mission Request for grants, and OP’s Security Council nominations. The Ambassadors added their approval for a few candidates, including ML_sudo and Troy from Synthetix.
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SIP/SCCP status tracker:
SIP-384: Launch Synthetix Chain (SNX Chain) Using the OP Stack for V3 Governance, Status: draft
SIP-403: List RENDER on Synthetix Perps, Status: draft
Conclusion: Keeping up with the latest developments and updates from the Spartan Council, Core Contributors, and Ambassador Council is crucial for staying informed about the progress of Synthetix and its ecosystem. With exciting projects in the pipeline and ongoing discussions about fee sharing and governance, it’s clear that the community is actively involved in shaping the future of the platform. For more news and insights on decentralized finance, be sure to check out DeFi Daily News for the latest trending articles and announcements.
