SNXweave Weekly Recap

Spartan Council and SIP updates

Present at the February 1, 2022 Spartan Council Weekly Project Sync:
Spartan Council: Afif, BigPenny, bojan, jj, Kain, KALEB, redmarglar, TerraBellus
Core Contributors: Bex, Cavalier, Rafa

  • SIP-184: Dynamic Exchange Fees — Adds a dynamic fee, in addition to base exchange fees, that responds to and neutralizes oracle frontrunning opportunities.
  • SIP-193: Refactor SystemSettings into Library to reduce contract size — Refactors and deploys a new library for SystemSettings to reduce contract size.
  • SIP-196: Remove Centralized Oracle — Removes all centralized oracle code from Synthetix contracts and testing.
  • This was presented again, by Kain, with some additional details that were clarified since the last presentation. This SIP introduces a target staking ratio that is incentivized through inflation. It will track the staking ratio within the network and modify the inflation rate weekly to ensure that this target ratio is achieved. Basically, it allows the target ratio to be adjusted
  • Staking ratio = % of SNX collateral staked / total SNX collateral
  • This SIP sets the target staking ratio at 85%, and will adjust the inflation weekly up or down depending on whether the staking ratio is below or above 85%.
  • There was a concern about the potential for snapshotting at higher inflation rates. SCCP-164, however, introduces a 7 day burn lock which should kill snapshotting because it would cost snapshotters the next set of rewards.
  • Presented by Kaleb, this SIP will update the existing atomic exchange functionality to allow trading at the pure Chainlink price (for certain synths) and remove the restriction on the source or destination currencies being sUSD.
  • Kaleb detailed two important limitations on atomic exchanges: 1) In order to add a synth, there needs to be an equivalent Uniswap pool, and 2) The ones that are available have poor liquidity, making the pricing unreliable.
  • This means it is impossible to configure some forex synths due to the lack of an equivalent dex token that has deep persistent liquidity.
  • This SIP therefore proposes that certain synths be traded exclusively at the Chainlink price.
  • Presented by Afif, this SIP will add Avalanche, Aave, Uniswap, Polygon, and Euro as new synths on Optimism.
  • He explained that liquidity has been thoroughly examined to ensure that these five synths are suitable as new additions.
  • The vote for this SIP is open.
  • Alsephina is designed to combat frontrunning and make trading more appealing while reducing risk for SNX stakers.
  • Futures is designed to add more base volume for the protocol and push the use case for decentralized derivatives.
  • Off chain reporting is about better alignment with our partners, particularly with Chainlink and Lyra.
  • Debt Shares and the Debt Pool Synthesis are about modernizing our system so we can power movement between different layers.
  • Liquidations and target staking ratio are about keeping the protocol healthy.
  • Atomic FX and volume are for improving the tradability of synths.

Grants Council

Present at the February 3, 2022 Grants Council meeting:
Grants Team: beachmom, cyberduck, joey, Mike

  • The Grants Council has been working with Core Contributor db on a Grafana dashboard, which is expected to be announced as usable very soon. This initial release will be a simplified version based on the 8 data points selected from the community survey. The next step will be a Grants-led/community-built dashboard.
  • As the newest addition to the list of Grants, the Hackathon is a very exciting event to look forward to. The Council is in conversation with an Indian University to sponsor and participate in this hackathon.
  • As we all know, the Council has been working with Universe.xyz to put together an exclusively Synthetix NFT drop. Nothing to leak here at the moment, but Soonthetix😉
  • Your voices have been heard! The top-voted name for the tools site was…*drumroll please*…Tools! Frontend has been delivered on this site, and the Grants team is just testing it now.

Ambassador Council

Present at the February 1, 2022 Ambassador Council meeting:
Ambassadors: GUNBOATs, Matt, MiLLiE

  • This is a mechanism to prevent people from manipulating the vault yields
  • 0.5% fee is charged at withdrawal and is reinvested back into the vault
  • In a 10% yield, you only lose money with this fee if you stay less than a month
  • Currently 10% and is deposited into a multisig
  • They would like these fees to be distributed to the community

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SIP/SCCP status tracker:

SIP-184: Dynamic Exchange Fees, Status: implemented

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