SNXweave Weekly Recap

Spartan Council and SIP updates

Present at the August 4, 2022 Spartan Council Weekly Project Sync:
Spartan Council: Afif, Ale, Burt, Danijel, ksett, SynthaMan, TerraBellus

  • Ale presented this SIP, explaining that it proposes the base architecture for the Synthetix V3 system, as well as all V3-related systems, such as governance instances (spartan-council, etc). This new architecture minimizes complexity during releases, provides a novel way of overcoming the EVM’s smart contract size limits, and makes system upgrades very explicit to the community.
  • The biggest change is moving from call proxies to delegate call proxies, which reduces the complexity of the implementation by 10x
  • Misuse of this type of proxies can cause storage collisions, hence the proposed architecture which prevents these collisions
  • The main feature of this proposal is that the architecture maintains the efficiency of the diamond proxy while also being highly gas efficient
  • Kaleb asked what the protocol risk would be if there was a collision, and Ale said it would require an emergency release to reconstruct the storage space
  • Danijel also expressed his concern saying “Part of the reason V2X is obsolete is because we used a custom solution rather than a proven solution with regular updates, and this seems like another custom solution.” Ale responded to this saying this is so useful that it may become a standard. The CCs even proposed it to the OpenZeppelin team and they were very impressed, but they’re not able to make it a priority right now.
  • This is something that’s necessary for complex systems like Synthetix, and a lot of effort has been put into making the tooling generic enough that other protocols could use the same coding logic very easily
  • Presented by Afif, this SIP proposes deployment of a contract that accepts ETH and mints an equivalent amount of sUSD. To offset short ETH exposure taken on by the debt pool in the course of this exchange, the proposed contract will also open an equivalent short ETH perp position to be borne by SNX stakers.
  • Afif said this requires a decently liquid, on-chain perpetual futures market, which Synthetix has
  • Perp contracts don’t currently support ETH collateral margin, so this is an opportunity to drive more use of the perp market
  • Millie asked how far this is expected to scale, and Afif said possibly up to $50 million
  • Lastly, Kaleb presented this SIP to implement a direct integration contract that allows integrators to tap into Synthetix’s exchange functionalities with customized parameters
  • There are a number of benefits for Synthetix to have a direct integration path with partners
  • Providing these special DirectIntegration routes into Synthetix’s exchange functionalities isolates the trade flow to a certain extent and allows the protocol to offer more competitive offerings via lower fees
  • Kaleb said it allows contracts to interact with our exchange function in a controlled setting
  • Currently, partner protocols have to interact within the same fee structure as normal traders
  • Dynamic fees and other protections are in place to protect against bad actors
  • This SIP effectively creates a whitelist for known integrators (adding to the list requires a full SIP)

Grants Council

Present at the August 4, 2022 Grants Council meeting:
Grants Team: ALEXANDER, CT, cyberduck, JVK, Mike

Ambassador Council

Present at the August 3, 2022 Ambassador Council meeting:
Ambassadors: mastermojo, Matt, MiLLiE

  • No loss of principal
  • Full liquidity (can withdraw at any time)
  • Aggregation of interest (via prizes)

Podcast now also on YOUTUBE

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

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SIP/SCCP status tracker:

SIP-258: Trade Directionality In Pricing of Atomic Swaps, Status: implemented

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