SNXweave Weekly Recap

Spartan Council and SIP updates

Present at the August 18, 2022 Spartan Council Weekly Project Sync:
Spartan Council: Afif, Ale, Burt, Danijel, Kain, ksett, SynthaMan, TerraBellus
Core Contributors: db, jz, KALEB, Mike, noah, Steve, sunny

  • Presented by Ale, this SIP 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.
  • Essentially a diamond proxy
  • V2X uses call and this new proposed architecture for V3 uses delegatecall
  • Delegatecall has some risks associated with it (storage collisions), which can be mitigated with proper tooling
  • The next big consideration with proxies is where to put the upgradability code (in the proxy or implementation). Decision was made to put in the implementation (called “universal proxies”), which makes them very cheap and gas efficient.
  • Updates to the router proxy:
  • Afif presented these SIPs simultaneously because they describe the staking process together
  • Goal of V3 product design is to take what V2X does and make it more flexible and permissionless
  • V3 proposes that products and offerings be broken up into several different markets, rather than a single blended debt pool
  • Theoretically, this allows stakers to pick individual markets that they want exposure to
  • Afif said a good way to think about markets is as autonomous contracts that are transacting with end users or other protocols and just passing the associated debt or credit to stakers
  • Kaleb ask about the scaling features like wrappers, and Afif said this will be presented as a separate SIP
  • This SIP proposes the creation of pools in V3 of Synthetix which serve as an intermediary by accepting collateral from accounts and providing liquidity to markets.
  • Afif: “Working through the details of markets, it became clear that a lot of users may want a simpler experience similar to what is offered now where the Spartan Council manages the exposure of each product, which is where the idea of pools comes in.”
  • The analogue in V2 would be that there is a Spartan Council pool and everyone stakes to it
  • V3 will start out this way as well but eventually, when pool creation is permissionless, users will be able to decide their allocation to different pools
  • GUNBOATs presented this SIP, which proposes adding a EUR synth on Optimism, with a 15 bp synthExchangeFee
  • There’s already a demonstrated use case for EUR on Optimism
  • This SIP proposes a mechanism for liquidations in V3 where liquidated positions have their collateral and debt distributed among other participants in their vault. If an entire vault is liquidated, all (or part) of its collateral is seized by the system and sold to repay debt.
  • This is similar to the current liquidation mechanism, but applied to the proposed permissionless pool model
  • Liquidations would be socialized among participants in individual pools which silos the risk to each individual pool
  • Terra asked if there is anything stopping a market actor from joining a pool just prior to liquidation to get discounted collateral. Afif answered saying no, but that’s not necessarily a bad thing because it would mean more liquidity being added to a market in a crisis. And worst case, the implications are no worse than the prior liquidation dynamic.

Grants Council

Present at the August 18, 2022 Grants Council meeting:
Grants Team: ALEXANDER, CT, cyberduck, JVK, Mike

  • Designer, Jade, has begun work on the design for the Loans UI
  • The writer for the NFT lore is working with the team’s feedback to update the different story lines
  • Alexander created an ad to attract content creators to create videos and be paid retroactively — check it out here!

Ambassador Council

Present at the August 15, 2022 Ambassador Council meeting:
Ambassadors: mastermojo, Matt, MiLLiE

  • Big priority over the next few months is onboarding as many traders and integrators as possible
  • The more trading strategies, the better
  • BTC vault just launched
  • Broader goal is to build revenue and Lyra’s brand as a DeFi options and liquidity venue
  • Grants Council will be focused on funding projects that will build the trader base

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SIP/SCCP status tracker:

SIP-249: Create BNB-PERP, Status: implemented

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