SNXweave Weekly Recap

6 min readFeb 28, 2024

February 28, 2024

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.

👉TLDR

V3 is still in its “soft launch” phase testing out limited OI caps
Asymmetric funding rate SIP is in the process of being deployed to testnet for integrators. Expected to be on Mainnet in the next 2-3 weeks, and Kwenta is likely to launch the public alpha before this feature is fully integrated
Multi-collateral liquidations: under development and being prepared for audit
Improved client library for ERC-7412: aiming to streamline development for integrators
React hooks library: being worked on to support integrators with a focus on being able to easily generate new LP apps for liquidity providers
Reference app for LPs: this will be for Andromeda on Base as well as ETH/OP mainnets, and likely L1 Perps
L1 SNX to V3 Migration: CCs are processing audit feedback and conducting tests to allow SNX stakers on V2X to seamlessly migrate their positions to the V3 system so they can back L1 Perps and V2 synths/perps
Spartan Council discussion about launching on Arbitrum: they signaled a mostly neutral stance
Fully on-chain governance: SIP-360 draft is ready for a presentation and may be ready for implementation by the end of the next
SIP-2055: Dynamic Gas Fee Module – Ecotone presentation recap
SIP-2056: List STRK on SNX Perps V2 presentation recap
Grants Council update: ongoing initiatives include ARB bot, integrator fee model (grant request was just recently approved), bot maintenance, and QA/QC on ongoing watcher improvements.
Ambassador Council update: team has been going over the submitted OP grants and providing feedback, and had a Spartan Space last week with Polynomial.

Spartan Council and SIP updates

Present at the February 14, 2024 Spartan Council Weekly Project Sync:
Spartan Council: Adam, bilby, cyberduck, Jackson, Kain, Millie, ml_sudo, Snax Frens
Core Contributors: Afif, Burt, David, Jade, joey, jz, KALEB, Mati, meb, Mike, Nikita, troy

Starting with Andromeda, V3 is still in its “soft launch” phase testing out limited OI caps and there haven’t been any major marketing pushes to get users to V3. Burt is looking for more market availability before they begin actively pushing more users towards the new system. Currently, in its throttled phase, V3 is just less appealing from a trader’s perspective than V2, so there isn’t really a compelling reason for traders to stay on V3 (though there are some traders actively testing the system and reporting bugs). There was, however, some support to list an SNX perp as an initial exciting offering to get traders to start using the V3 markets.

As for the asymmetric funding rate, the team is currently in the process of deploying this SIP to testnet for integrators. This is expected to be on Mainnet in the next 2-3 weeks, and Kwenta is likely to launch the public alpha before this feature is fully integrated.

Other initiatives that are currently in progress for the CCs are:

Multi-collateral liquidations: under development and being prepared for audit
Improved client library for ERC-7412: aiming to streamline development for integrators
React hooks library: being worked on to support integrators with a focus on being able to easily generate new LP apps for liquidity providers
Reference app for LPs: this will be for Andromeda on Base as well as ETH/OP mainnets, and likely L1 Perps

Next, for the SIP to migrate L1 SNX to V3 using the V3 legacy market, the CCs are processing audit feedback and conducting additional tests to allow SNX stakers on V2X to seamlessly migrate their positions to the V3 system such that they can back L1 Perps and V2 synths/perps. The main driver behind this is to be able to have available collateral to back L1 Perps. The legacy market should be ready to be deployed to V2X within a week, then to V3 a couple weeks after that, pending audit feedback.

The Spartan Council also discussed launching on a new chain, where they signaled a mostly neutral stance for deploying to Arbitrum. Meb explained that it’s not as much of a technical hurdle in V3, though it would still briefly strain developer resources during the testing phase. From an integrator perspective, Polynomial and Rage trade have expressed interest in the deployment, but Burt mentioned that from Kwenta’s perspective they haven’t really fleshed out how they would service a second V3 deployment. Millie added that the product should be ready to quickly scale before it’s deployed to Arbitrum.

Lastly before the SIP presentations, there was some discussion again regarding fully on-chain governance. The main proposal for this, SIP-360, is ready for a presentation and may be ready for implementation by the end of the next epoch (the current focus remains on scaling Andromeda on Base). SIP-341 will then add address permissions only to execute SCCPs for the initial integration with the election system. Then there will be a third SIP, that has not been assigned a number yet, for a Safe module that integrates elections system NFTs, for use with a ‘configurer’ Safe.

Next up are the SIP presentations from last week, so let’s briefly review those:

SIP-2055: Dynamic Gas Fee Module — Ecotone

Presented by Kaleb, this SIP proposes putting in place a new dynamic gas fee module to replace the one currently implemented under SIP-2013
Ecotone is an Optimism upgrade that will go live on March 14th to implement EIP-4844 and is expected to significantly reduce fees
The main motivation here is to continue to incentivize the decentralized community keepers to execute perps V2 settlement & liquidation transactions by covering the cost of execution
Settlement gas prices for Synthetix users are expected to drop roughly 50% eventually as a result of this upgrade
This SIP will update V2X to reflect this change and there will be another SIP for V3

SIP-2056: List STRK on SNX Perps V2

This SIP proposes listing Starknet to Perps V2
Starknet is at the center of the zk rollup narrative that utilizes STARKs to ensure computational integrity, aiding in overcoming Ethereum’s scaling limitations
Burt explained that the airdrop happened on February 20th so there is expected to be a lot of trading interest, and the only other Perps offering for STRK perps is on AEVO which is only offering 2x leverage

Grants Council

Present at the February 15, 2024 Grants Council meeting:
Grants Team: ALEXANDER, es MC, Mike, MoneyManDoug, Synthquest

In Grants Council updates, the team’s most recent meeting revolved around their current ongoing projects, including: the ARB bot, integrator fee model, bot maintenance, and QA/QC on ongoing watcher improvements.

As a refresher for the ARB bot initiative, the GC is funding an expansion on the existing Synthetix V3 SDK, which will include a template CEX/DEX arbitrage bot. They recognized a growing need for arbs on V3 and are excited to build simple tooling that allows anyone to set up an arbitrage bot by running a few lines of code.

And, in exciting news, the integrator fee model project was just recently approved by them! You can read the grant here.

Ambassador Council

Present at the February 20, 2024 Ambassador Council meeting:
Ambassadors: GUNBOATs, Kevin, Mastermojo, Matt, Westie

Lastly, in Ambassador updates, the Council has been focused on their Optimism responsibilities, dutifully going over the OP grants and providing feedback for those who submitted a grant. They also prepared for their Spartan Space last week with Polynomial, where Mastermojo and Westie hosted.

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SIP/SCCP status tracker:

SIP-354: Perps V3 Asymmetric Funding, Status: approved

SIP-306: V3 Migration, Status: implemented

SIP-360: Synthetix V3 Cross-chain Elections System, Status: draft

SIP-341: Add Configurer Address, Status: draft

SIP-2055: Dynamic Gas Fee Module — Ecotone, Status: draft

SIP-2056: List STRK on SNX Perps V2, Status: draft