The Treasury Council has initiated the migration to V3, following the guidelines outlined in SIP 304, which signifies the commencement of the Synthetix V3 transition. The migration process for stakers to V3 is anticipated to commence within the next 2-3 weeks. This update introduces significant changes to the ecosystem, notably in the way liquidations are managed.
The Treasury Council has embarked on the migration to V3, detailed in SIP 304, which is the initial phase of the transition to Synthetix V3. The migration of Ethereum Mainnet (L1) stakers to V3 is anticipated to open in the next 2-3 weeks. This update brings about significant changes to the ecosystem, particularly in the handling of liquidations.
Key Changes for L1 Stakers on V2X
Immediate Liquidations: SNX staker liquidations will now occur immediately when a position crosses the liquidation ratio. 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.
As the Treasury Council initiates the migration to Synthetix V3, significant changes are on the horizon for stakers in the ecosystem. With updates to the liquidation process and ongoing interactions between V2X and V3, the transition promises to reshape the landscape of Synthetix. Keep an eye out for upcoming changes in Phase 2 and future actions for stakers as the transition progresses. For more trending news articles like this, check out DeFi Daily News to stay informed and engaged with the latest developments in the DeFi space.
