March 13, 2024
The following article contains a recap of news, projects, and important updates from the Spartan Council and key contributors, as well as the Grants Council and Ambassadors Council from the past week.
👉TLDR
- V3 List Supermarket Discussion: Burt asked which assets are appropriate to be listed in supermarkets and which assets should be listed outside of supermarkets and wondered if it would be confusing to track multiple cross-margined accounts across multiple supermarkets ⬇️
- It was clarified that there would only be one supermarket in the main SC pool where cross-margining would be permitted, and that other listings could be added to the SC pool outside of that supermarket, so that They would trade as completely isolated markets supported by the SC. pool (this would correspond to the UX centralized exchange).
- Afif warned against adding riskier assets to the supermarket and suggested a periodic review of liquidity to determine whether listings in the supermarket should be moved to isolated markets.
- Kain also discussed the possibility of creating a liquidity monitoring dashboard that would allow the SC to keep abreast of market conditions.
- SIP-365: Remove base fee switch summary of the presentation
- SIP-366: Asynchronous delegation summary of the presentation
- SIP-360: Synthetix Cross-Chain Elections System V3 summary of the presentation
- SIP-341: Add a configuration address summary of the presentation
- SIP-361: Perps V3 — Integrator and CC queries summary of the presentation
Spartan Council and SIP Updates
Present during the Spartan Council's weekly project sync on March 6, 2024:
Spartan advice: bilby, Kain, Millie, ml_sudo, Snax Frens
Main contributors: Afif, Ana, Burt, Cavalier, David, Joey, JZ, KALEB, Matt, Meb, Mike, Noah, Steve, Sunny, Troy
Burt kicked off the discussion last week by asking how the Spartan Council plans to approach listings in V3 based on the new “supermarket” mechanism (i.e. which assets are suitable for listing in supermarkets and which assets should be listed outside supermarkets).
Burt mentioned that, from a user perspective, it could become confusing to track multiple cross-margined accounts across multiple supermarkets, each with their own set of assets. It was clarified that there would only be one supermarket in the main SC pool where cross-margining would be permitted, and that other listings could be added to the SC pool outside of that supermarket, so that They would trade as completely isolated markets supported by the SC. pool (this would correspond to the UX centralized exchange). Later, a completely separate supermarket outside of the SC pool could be added for more aggressive long-tail asset listings.
Afif also warned against adding riskier assets to the supermarket and suggested a periodic review of liquidity to determine whether listings in the supermarket should be moved to isolated markets. This change would involve opening a new isolated market and only closing the market for this listing within the supermarket. It was suggested that a quantitative list of criteria be formulated in a SIP to determine which assets are eligible for supermarket listing. Kain also discussed the possibility of creating a liquidity monitoring dashboard that would allow the SC to keep abreast of market conditions.
Next, there were several SIP presentations last week, so let's briefly go over each of them:
SIP-365: Remove base fee switch
- Presented by Noah, this SIP proposes to remove the basic fee capture mechanism that was implemented in SIP-319 in favor of market-level fee capture
- The existing mechanism works well for spot markets, but is less suitable for Perps markets because it would assess margin deposit and withdrawal fees.
- Since fee capture occurs during market implementation, this SIP proposes removing base fees rather than adding governance configuration variables.
SIP-366: Asynchronous delegation
- This SIP is an improvement over SIP-320 and seeks to eliminate possible LP attack vectors
- SIP-320 proposed a minimum duration of delegation, but even with this mechanism, it was still possible to benefit from timely delegation/non-delegation of security.
- This SIP proposes to add a market-determined delay in both directions depending on whether the delegated guarantee increases or decreases to make the delegation asynchronous.
- This is similar to the order settlement asynchrony that was added to eliminate foreground attack vectors.
- This is a switch that can be turned on or off depending on the market, depending on whether conflicting LP dynamics are a concern.
SIP-360: Synthetix Cross-Chain Elections System V3
- This SIP proposes a new system to facilitate on-chain elections
- Better cross-chain technology has been released since the original design and release of the V3 Governance Module, so it is proposed to incorporate some of this new technology to reduce reliance on Merkle trees and create a more modular electoral system.
- Importantly, this will add flexibility to calculate voting power from V2 and V3.
SIP-341: Add a configuration address
- This proposes adding a configuration address that would be able to execute SCCPs, which is a first step towards the goal of on-chain governance.
- NFTs issued by the governance module following the elections would connect to this address, rather than the owner's address, to reduce protocol risk
SIP-361: Perps V3 — Integrator and CC queries
- Kaleb presented this latest SIP, which features a number of quality improvements suggested by CCs and integrators
These improvements include:
- Throw it away getReportedDebt of the event emitted when withdrawing sUSD from a given perp market (this will reduce the cost for users)
- Incorporate a getOpenPositionSize that returns the size of an open position when given a market ID and account number as input
- Emit an event when an account is marked for liquidation (requested by Kwenta so they have documentation of when users are liquidated)
- Incorporate a display function that returns the settlement holding costs plus the settlement reward (requested by Polynomial for reporting in its user interface)
- Require strict obsolescence tolerance when removing margin (price freshness required for withdrawal – 30 seconds)
- Incorporate a required margin for the order when given an execution price (required for limit orders and requested by Kwenta)
- Incorporate a secondary cap on USD-denominated open interest (necessary to maintain OI caps during rapid price increases to protect the protocol)
- Remove the minimum retention fee from the getRequiredAccountMargins function (this is a bug fix)
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SIP/SCCP status monitoring:
SIP-365: Remove basic fee switch, Status: approved
SIP-366: Asynchronous delegation, Status: approved
SIP-360: Synthetix V3 cross-chain elections system, Status: approved
SIP-341: Add the address of the configurator, Status: draft
SIP-361: Perps V3 — Integrator & CC Queries, Status: approved