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SNXweave 150 Weekly Recap

Posted on by angelo
SNXweave 150 Weekly Recap

August 21, 2024

The following article contains a recap of important news, projects, and updates from the Spartan Council, Core Contributors, and Ambassador Council from the past week.

👉TLDR

  • L1 Pervert: Released to the testnet last week. An integrator outreach has been launched to determine who will support the Perps frontend and Vault functionality.
  • Basic update: The stataUSDC vault is live! The feed is being updated to accept USDC and allow USDC withdrawals ahead of broader communications.
  • Migration V3: In Progress — As of Monday, autoliquidations for SNX stakers on the Ethereum mainnet have been disabled. If your C-Ratio is near the liquidation threshold, you will need to revert to a 500% C-Ratio to avoid an automated liquidation. No action is required from stakers to migrate to V3 yet, and any updates to this schedule will be announced soon — the migration is likely to be enabled this week.
  • Launch of Synthetix Perps on Arbitrum: CCs are waiting for the LTIP council to respond to the extension request. Multi-collateral margin support is in the final stages of remediation as pull requests are being reviewed and tests are being written. The Sepolia release is expected to be on Mainnet this week.
  • Governance V3: Posted on testnet, in preparation for mainnet this week. Proposed election schedule:
    • Start of nominations: Friday August 30
    • Voting begins: Thursday September 5th
    • A new era begins: Sunday September 15
  • Increased share of LP fees in V3 discussion: TLDR — the current distribution is 40% LP, 40% protocol (buyback and burn), and 20% integrator. Millie suggested changing the LP and protocol percentages to further incentivize LP activity, adding that the yield offered on stablecoins on other protocols (Aave for example) is quite high now, which attracts some of the potential LP supply. FIFA pointed out that there are other levers available to the Spartan Council to increase the amount of fees earned by LPs, including increasing fees or reducing bias scales. Matt suggested waiting until some of the yield-generating collateral types come online to see how that impacts TV. (see below for full details of the conversation)
  • SIP-384: Launch Synthetix Chain (SNX Chain) using OP Stack for Governance V3 presentation overview (see below for summary)
  • SIP-403: RENDER List on Synthetix Perps presentation overview (see below for summary)
  • Ambassadors Council Update: The Board discussed two Kwenta votes: the GMX integration and the Gains Network integration. They voted against both proposals (see results below). They also discussed future Spartan Spaces, the upcoming Optimism grant application, and the OP’s nominations to the Security Council. Ambassadors added their endorsements for a few candidates, including ML_sudo and Troy from Synthetix.

Spartan Council and SIP Updates

Present at the Spartan Council Weekly Project Sync on August 14, 2024:
Spartan Council: Cavalier, cyberduck, fifa, Jackson, Millie, ml_sudo, Snax Frens, snxmaximalists
Main contributors: Fred, Kaleb, Matt, Meb, Mike, Mithrandir, Moss, Mr. X, Robin, Steve, Troy, Wasp

Let’s start with the highlights of the week, L1 Pervert was released to the testnet last week. Integrator outreach also began last week to determine who will support the Perps frontend and Vault functionality.

Inasmuch as basic update — The stataUSDC vault is live! The feed is being updated to accept USDC and allow USDC withdrawals ahead of broader communications.

THE Migration V3is also underway — as of Monday, autoliquidations for SNX stakers on the Ethereum mainnet have been disabled. So if your C-Ratio is approaching the liquidation threshold, you will need to revert to a 500% C-Ratio in order to avoid an automated liquidation. No action is required from stakers to migrate to V3 yet, and any updates to this timeline will be announced soon — the migration is likely to be enabled this week.

For the Arbitrum Scaling CCs are simply waiting for the LTIP council to respond to the extension request – at worst, they will simply have to return the remainder of the grant. And multi-collateral margin support is in the final stages of remediation, as pull requests are being reviewed and tests are being written. The Sepolia release should be on Mainnet this week.

Governance V3 has also been released to the testnet and is also targeting the mainnet this week. The proposed election schedule is as follows:

  • Start of nominations: Friday August 30
  • Voting begins: Thursday September 5th
  • A new era begins:Sunday September 15

In another discussion, Mille raised the possibility of increase in LP share of fee share in V3 . The current split is 40% LP, 40% protocol (buyback and destruction) and 20% integrator. He proposed changing the LP and protocol percentages to further encourage LP activity. When the original fee-sharing structure was proposed, SC members agreed that it could be reviewed and amended if necessary. He highlighted a potential concern that the TVL has declined significantly from the peak of $30 million, so increasing the share of fees going to LPs could bring some of that back.

Millie argued that of the three parties receiving fee distributions, LPs take the most risk and should be compensated accordingly. He added that the yield offered on stablecoins on other protocols (Aave for example) is also quite high now, which attracts some of the potential LP supply. FIFA pointed out that the Spartan Council has other levers to increase the amount of fees earned by LPs, including increasing fees or reducing bias scales. Matt suggested waiting until some of the types of yield-generating collateral come online to see how that impacts TV.

There were also a few SIP presentations last week, so let’s briefly review them:

SIP-384: Launch Synthetix Chain (SNX Chain) using OP Stack for Governance V3

  • Presented by meb, this SIP is a more limited version of the original proposal to launch an SNX channel
  • It would initially only serve as a basis for the governance of Synthetix V3
  • The plan is to leverage Synthetix Chain as the mothership of Synthetix governance and run it independently alongside existing deployments.
  • This would address current limitations of the voting system that require votes to be cast from the Optimism mainnet
  • Wormhole cross-chain messaging would facilitate voting/messaging on any network V3 is deployed on
  • The plan is to prepare this for the next elections (SNX chain is already live on the mainnet)

SIP-403: RENDER List on Synthetix Perps

  • Millie presented this quick SIP, explaining that RENDER was previously on Synthetix Perps as RNDR before the token migration
  • With the addition of the new ticker by Pyth, the market can start trading again

Council of Ambassadors

Present at the meeting of the Council of Ambassadors on August 14, 2024:
Ambassadors:dsacks, GUNBOATs, Mastermojo, Matt, Westie

Finally, in Ambassador Updates last week, the Council discussed two important Kwenta votes: the GMX integration and the Gains Network integration. They voted against both of these proposals (see results in the image below). They also discussed future Spartan Spaces, the upcoming Optimism Mission grant application, and OP Security Council nominations. Ambassadors added their endorsements for a few candidates, including ML_sudo and Troy from Synthetix.

SNXweave Anchor Podcast: https://anchor.fm/snxweave

Follow us on Twitter! @snx_weave

SIP/SCCP Status Monitoring:

SIP-384: Launch Synthetix Chain (SNX Chain) using OP stack for governance V3, Status: draft

SIP-403: RENDER list on Synthetix Perps, Status: draft