January 31, 2024
The following post contains a summary of news, projects, and important updates released over the past week by the Spartan Council and its Core Contributors, Grants Council, and Ambassador Council.
👉TLDR
- Key milestones in the draft 2024 roadmap:
1. Expand base volume to $20 million per day
2. Decide on a new chain to deploy V3 and Perps on
3. Move governance fully on-chain
4. L1 Perps released
5. Start SNX migration from V2X
- Spartan Council Connection Discussion
- SIP-355: Add additional view to spot market Presentation summary
- SIP-2052: List CVX in SNX Perps V2 Presentation Summary
- SIP-2050: sINR Synth support discontinued Presentation Summary
- SIP-2051: Perp Markets with a maximum market value of 0 will be discontinued. Presentation summary
- SCCP-2077: Activate MMV Hazard Control Module Presentation summary
Spartan Council and SIP Updates
Announced in Spartan Council Weekly Project Synchronization, January 24, 2024:
Council of Sparta: Bilby, Cyberduck, Jackson, Kane, Millie, ml_sudo, Snax Frens
Key contributors: Afif, Ana, Cavalier, David, KALEB, Leo, Matt, meb, Mike, Regina, Steve, Troy
First, the draft roadmap for this year has been released and the key milestones are:
- Expand base volume to $20 million per day
- Decide on a new chain to deploy V3 and Perps on
- Move governance fully on-chain:
Jackson asked if this was actually a priority, given that it doesn’t move the dial much for end users (traders) of Synthetix’s products (Perps). Cav responded that further decentralization of governance is something the protocol has been working on for some time and that continuing to build on this is an important part of the protocol.
This has been going on for some time, and we’ve already gone through one audit and are preparing for a second one. This will be a V3 release. This means that sufficient collateral for V3 in L1 is required and some incentives may be required. The current goal is approximately $100 million in SNX collateral to create a functional product for the expected user base. This is approximately 20% of the SNX in a V2 system. To launch Perps on L1, potential integrators like Ethena will need to approve wstETH with the requested margin.
- Start SNX migration from V2X:
The biggest dependency for V2X to V3 migration is the destination chain.
Cav is working on a SIP to explain who owns each part of the roadmap and how to properly allocate resources to each part. There have been concerns that multiple deployments would lead to CC becoming even thinner, but Cav believes the Treasury Committee (TC) could help address some of these issues. One of the motivations for releasing this roadmap was to provide greater clarity on what the protocol wants to achieve over the next year and then deploy resources to get it done.
After reviewing the roadmap, the SC discussed bridging. Millie expressed her support for potential future quarantine deployments, but she would vote against bridging integration, she said. ML_sudo favors interoperability, but security is a concern. Jackson believes the reason Synthetix is hesitant about bridging is because it is not an area of expertise for the protocol, and working with providers who are experts should be preferred.
Next, there were several SIP presentations last week, so let’s take a quick look at each one.
SIP-355: Add additional view to spot market
- This SIP proposed by Leo answers integrator and developer requirements for data access by adding view capabilities for configuration and internal calculations.
- New views add price data, wrapper data, market owners, and market distortions.
SIP-2052: List CVX in SNX Perps V2
- This SIP proposes listing Convex Finance (CVX) on Synthetix Perps.
- Burt explained that CVX had reached out specifically to assist with this asset listing, and that the CVX community has many active Kwenta users.
SIP-2050: sINR Synth support discontinued
- Starting with this SIP, Kaleb has released the last few SIPs to deprecate the sINR synth (worth 140sUSD) with little public interest.
- As with other deprecated synths, the price is frozen at the time of implementation and anyone holding the asset can redeem sUSD at the frozen price.
SIP-2051: Perp Markets with a maximum market value of 0 will be discontinued.
- This SIP proposes to deprecate 15 Perps markets (voted for delisting in SIP-2047) within six months, on July 31, 2024.
- This will result in the removal of the oracle from the futures market manager and make the oracle obsolete.
- Kaleb explained that the six-month grace period will give users ample time to close open positions.
SCCP-2077: Activate MMV Hazard Control Module
- It proposes to activate a risk control module that can reduce the OI to zero for a predetermined list of markets (described in the SCCP).
- This SCCP is the next step in SIP-2048, which proposed the introduction of this mechanism and was approved by 7 votes.
- This mechanism is only used urgently during periods of unusual market activity that discourages arbitrageurs from participating.
- The module is controlled by the Gnosis Vault and the authorized accounts are 3 out of n multi-signatures, including the Distributor and the pDAO (this effectively means that it is controlled by the pDAO, but dictated by an ad hoc Risk Council).
- This will eventually become the sole responsibility of the Risk Committee, but until the Risk Committee is formed, this process creates a check between the SC (through the Ad Hoc Risk Committee) and the pDAO.
- Every new market added requires an additional parameter in the configuration SCCP to specify whether it is included in this module.
- Kain asked about the process of how this is activated.
— Kaleb explained that there is an off-chain monitoring system that notifies the risk committee of any issues.
— The distributor then prepares a transaction to bring the OI of the market in question to zero.
— The Risk Committee evaluates the feasibility of the issue and then authorizes pDAO to execute the transaction.
— The Ad Hoc Risk Committee briefs the SC on what happened and what action was taken.
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SIP/SCCP Status Tracker:
SIP-355: Add additional views to the spot market. Status: Approved
SIP-2052: List CVX in SNX Perps V2, Status: Approved
SIP-2050: sINR Synth support discontinued, Status: Implemented
SIP-2051: Perp Market with a maximum market value of 0 is no longer used. Status: Approved
SCCP-2077: Activates the MMV hazard control module. Status: Approved
