Monday, December 4, 2023

Synthetix Quarterly Report — Q1 2023

Quarterly Report for Synthetix, Quarter 1 of 2023: January — March.

Q1 Highlights

⭐ Spartan Council/CCs: Perps V2 Updates & Synthetix V3

⭐ Grants Council: Perps V2 Help & Stats Web page Enhancements

⭐ Ambassador Council: YouTube Channel & Integrations

We’re again once more with one other thrilling quarterly report for the group — and there have been fairly a number of main occasions within the first quarter of what’s shaping as much as be an thrilling 2023! As all the time, let’s start with the highlights of the quarter.

Perps V2 was formally deployed on the very finish of This autumn final 12 months, however at launch, the chance parameters had been conservative sufficient to provide the CCs the chance to evaluation stay efficiency knowledge and tweak the product accordingly. Fairly a number of enhancements had been revamped the course of the quarter starting from bug fixes to main quality-of-life fixes — a few of which had been proposed by the group and different integrators.

We additionally noticed the much-anticipated Synthetix V3 mainnet rollout start early within the quarter! V3 represents an entire redesign of the core Synthetix structure and can lay the groundwork for a wide range of on-chain monetary merchandise by way of an modern liquidity-as-a-service mannequin. At ETHDenver, the CCs had been in a position to deploy a few of the preliminary V3 core contracts they usually even started to reimagine what a few of the primary Synthetix product choices would appear to be underneath the brand new framework (resembling Perps).

Subsequent up for our highlights, the Grants Council (GC) performs a elementary function within the Synthetix ecosystem. There’s by no means a scarcity of group members prepared to place their abilities to make use of for the great of the protocol, and the Grants Council seeks out these group members and funds work that advantages the protocol. It’s a operate that requires a little bit of agility as they consistently pivot to fulfill at present’s protocol wants and put themselves in place to seize some worth from trade traits.

As soon as the coaching wheels got here off Perps V2, the Grants Council instantly started working funding and constructing out instruments to help the product and make it extra accessible. Additionally they oversaw main enhancements to the hero stats web page. At launch, it was a bit clunky and fairly tough to make use of, however the UX has improved significantly and the web page now presents a clear snapshot of essential protocol knowledge. Dependable stats enhance protocol credibility and will be an essential software within the technique of searching for and onboarding new integrators.

The Ambassadors additionally had an thrilling quarter as they continued to be the voice of Synthetix within the broader DeFi ecosystem. That is all the time most clear within the Spartan House occasions that they host, in addition to the integrations they can facilitate both by way of these occasions or by way of constructing relationships within the trade. This quarter, the Ambassadors hosted 4 spartan areas and have facilitated a variety of integrations, at the moment in varied levels of completion, with Mux protocol, Nested, and Unidex. Additionally they put numerous work in the direction of constructing out the Ambassador YouTube Channel this epoch the place they plan to put up all of their Spartan House recordings in addition to host academic calls with CCs.


This quarter, the US banking system got here underneath fairly a little bit of rate of interest stress. As charges began to normalize away from zero, some banks discovered themselves underwater on what was beforehand used to quantify danger free return — US treasuries. Within the mayhem, 3 main crypto banking companions both failed or closed and there was a short concern that Circle wouldn’t be capable to recuperate a considerable portion of the money backing USDC, which it had in deposit at Silicon Valley Financial institution.

Consequently, there was a short-lived depeg on USDC. However to stop additional financial institution runs, the US Treasury rapidly introduced that each one depositors could be made entire and the USDC worth rapidly recovered. This did create some momentary chaos in DeFi as USDC represents a vital hyperlink within the fiat onramp chain. It additionally occurred in opposition to the backdrop of broader regulatory and liquidity tightening throughout monetary markets. The sUSD peg, nevertheless, remained sturdy all through this turmoil.

A protocol-level problem this quarter, that may probably lengthen by way of to the launch of V3, is the proposed tokenomics and collateral base. There have been ongoing discussions within the Discord about utilizing collateral apart from SNX to again the liquidity of the system and there are two sides to this debate. We really not too long ago revealed a separate weblog on this matter that critiques the in-depth dialogue that occurred within the spartan-council channel of the Discord. The argument for utilizing different collateral was that it’ll enable the merchandise to scale past the market cap of the SNX token, and the argument in opposition to was that present SNX holders could lose vital worth on their funding if different collateral is allowed.

In different DAO challenges, we must always take a minute to briefly focus on the Grants Council’s NFT mission. The mission initially took off in mid-to-late 2021 and work started virtually instantly. As a reminder, they’re doing issues somewhat totally different because the proceeds from the bought NFTs will go to a GC fund that’s meant to complement their finances from the Treasury Council. This mission sadly has skilled a number of delays and setbacks: the artists being upended in Ukraine, {the marketplace} it was initially meant to launch on by no means being launched, and many others. It does appear to be we may even see the mission delivered later this 12 months, however some are involved that a lot of the curiosity in NFTs is behind us for now. The Council, nevertheless, has continued to unravel one downside after the opposite on this mission, which is admirable, and we stay up for seeing the ultimate product.

Protocol Stats

Overview of Synthetix Q1 Stats: January 2023 — March 2023

Spartan Council

Q1 2023 Spartan Councilors: Adam, Cavalier, dsacks, Jackson, KALEB, SeliniCapital (representing Jordi), TerraBellus, William87

Together with their contribution to the achievement of main Synthetix milestones this epoch, let’s take a minute to evaluation every thing else that the Spartan Council was in a position to obtain in simply the final 3 months.

On the finish of final 12 months, the beta for Perps V2 was launched. It was instantly useful however didn’t help the wide selection of property accessible in V1, and was launched with very restrictive open curiosity caps. This was, in fact, within the curiosity of protocol security and safety and gave the CCs the chance to stay take a look at the efficiency. By the tip of January, the CCs had been in a position to make all the vital corrections on the updates that had been all authorized in SIP-297 (which went out on the Mintaka launch).

Subsequent, February was a really busy month and started with a little bit of spring cleansing. SIP-293, which went out on the Sadr launch, deprecated a variety of low quantity spot synths together with AAVE, LINK, DOT, ADA, MATIC, UNI, AVAX and SOL. A number of days later, the Eltanin launch went out which carried over the remaining perps providing from V1 to V2, as outlined in SIP-295, and added ATOM, AXS, FLOW, FTM, NEAR, AUD/USD and GBP/USD perps markets, per SIP-2000.

In the direction of the center of the month, SIP-255, to burn charges moderately than distribute them to stakers, went out on the Schedar launch. The worth that these charges generate, nevertheless, continues to be distributed to stakers. However moderately than being distributed as an sUSD declare, the charges cut back the overall debt of the protocol, which is handed to stakers primarily based on the proportion of the debt they again.

The most important story of the month, and even perhaps the quarter, was the launch of V3. CCs have been working tirelessly to get the core system on mainnet and thru governance, and it was lastly deployed simply earlier than ETHDenver in February. There’s nonetheless fairly a bit of labor to be performed, however at this level, a lot of the main SIPs describing V3 operate have made it by way of governance and most of them have gone by way of audit as properly. The CCs are engaged on processing the audit suggestions as we communicate and have stated they count on the spot market implementation to be up as early as the tip of April. There’s at the moment nonetheless no utility within the core system, however anyone in the neighborhood who’s fascinated by constructing out tooling and dashboards can begin doing so now!

Lastly, we closed out the quarter with a SIP that may have in any other case not even been newsworthy if to not convey consideration to how rapidly the CCs and Spartan Council had been in a position so as to add ARB to the record of Perps choices. Not too way back, even when the feed was already accessible, including a brand new synth would have taken a minimal of two–4 weeks between the chance research, governance approval and eventual implementation. ARB was added over a weekend. In actual fact, the one delay was that the presentation needed to be performed twice as a result of not sufficient Spartan Council members had been accessible for the primary presentation. Props to that agility and effectivity!

Grants Council

Q1 2023 Grants Councilors: ALEXANDER, Ana, CT, JVK, synthquest

And transferring on to our Q1 evaluation for the Grants Council, let’s check out what they labored on this epoch:

Beginning off sturdy, the Grants Council put out this very great tool for Synthetix Perps. With this Funding Charge Data Bot, now you can get detailed Market Measurement, Charges, Velocity, Open Curiosity L & S, and many others. to assist together with your superior trades. All it’s a must to do is go to the “funding-bot” channel within the Synthetix Discord, and kind out these instructions:

-Sort “/funding” for market of alternative: ETH, BTC, and many others.

-Sort “/markets” for high 5 markets

And, as a matter of truth, the Council has already put out a model 2 of this bot! There are actually extra instructions:

So shout out to all of the arbitrage merchants! Head on over to check out this bot and get an edge on different merchants.

And talking of Perps, it’s value noting that the Grants Council has labored very exhausting this quarter to help Perps V2. With their aforementioned info bot, in addition to well-received Twitter and Discord engagement, they’ve been profitable at serving to to boost consciousness, whereas additionally growing the utility and enjoyable of the product.

Like we talked about earlier, the stats web page was not nice when it first launched. The GC sought to make it higher and did so by way of a number of UX enhancements and plenty of hours of working with CCs. It’s now working a lot better than it was, and can proceed to get higher and higher all through V3!

The Grants Council has additionally continued to take care of their help in internet hosting and upkeep for varied Synthetix bots.

  • 300 Lieutenant Stipend Sponsorship

Lastly, the Council continues to sponsor the stipend for the 300 Lieutenant, milkywave, who leads the 300 group and administers duties to assist develop and publicize the protocol. Proper now there’s an open process to ship in questions you’ve got for this epoch’s Spartan Council Election Panel that SNXweave is internet hosting, so make sure to get yours in!

What’s subsequent for the Grants Council?

I do know we’ve been speaking about this one for some time…and it definitely is a very long time coming. Ever since taking over this extraordinarily intensive and detail-oriented mission, the Grants Council has sadly skilled many setbacks with the individuals and DAO they had been working with. Nonetheless, they’re now within the thick of it with the ultimate particulars, and are hoping to launch throughout this upcoming quarter.

  • Getting ready finances/targets for supporting Synthetix V3 launch

Lastly, the Council has been discussing and rearranging their finances to have the ability to help the remaining V3 launch. Since they plan to complement their funding as soon as the NFT mission goes stay, they’ll have much more to work with on this regard.

Ambassador Council

Q1 2023 Ambassador Councilors: GUNBOATs, Kevin, mastermojo, Matt, MoneyManDoug

The Ambassadors began off sturdy with this primary quarter of 2023, logging in a number of applied SIPs, protocol integrations, and extra. Right here’s every thing they achieved over the previous couple of months:

✅ Spartan Areas

1. Synthetix V3 explainer (88 listeners, Size: 1 hour)

  • Company: Afif, Noah, and db
  • The Ambassadors sat down with the SNX Core Contributors who’ve been creating Synthetix V3, a revolutionary liquidity provisioning system, to dive deep into the system’s design and long-term targets. V3 goals to perform what Synthetix got down to do a few years in the past by remodeling the protocol right into a permissionless derivatives platform.
  • Recording right here

2. Threshold (55 listeners, Size: 45 minutes)

  • Visitor: MacLane Wilkison
  • MacLane Wilkison from Threshold joined to debate the protocol’s newly launched tBTC V2. On this name, listeners realized how Threshold helps to decentralize BTC on Ethereum, the function of optimistic minting, customers throughout the system (guardians/minters), and the roadmap for additional decentralization.
  • Recording right here

3. Illuvium (92 listeners, Size: 1 hour)

  • Visitor: Kieran Warwick
  • The SNX Ambassadors hosted Kieran Warwick from Illuvium to debate the present state of internet 3 gaming, Illuvium’s three upcoming video games, and governance inside Illuvium.
  • Recording right here

4. Polynomial (42 listeners)

  • Company: Gautham and Abhishek
  • Through the name, the Ambassadors and their company coated matters such because the options of Polynomial Perps (which is constructed on Synthetix Perps), upcoming options, the advantages of constructing on high of Synthetix, and the pivot from Earn to Perps.
  • Recording right here

✅ Proposals

1. SIP-2000: Add ATOM, AXS, FLOW, FTM, NEAR, AUD/USD and GBP/USD to Perps V2 (writer: Matt)

  • This proposal added a number of markets to Perps V2, which was a vital step in guaranteeing that merchants proceed to have entry to a lot of markets in Perps V2. These had been chosen as a result of they’re all supported by Pyth Community and Chainlink already, and didn’t require any further ready interval.

2. SIP-298: Including APT, LDO, ADA, GMX, FIL, LTC, BCH, SHIB, and CRV to Synthetix Perps V2 (writer: Matt)

  • Together with SIP-2000, this SIP added 9 extra markets to Perps V2.

3. SIP-295: Including Perps V1 perps markets to Synthetix Perps V2 (writer: Matt)

  • Just like SIPs 2000 and 298, this proposal added a number of further markets to Perps V2, all of which had been already accessible for buying and selling in Perps V1.

4. SIP-294: Redirect inflation from Curve sUSD pool reward to Curve synth incentives (writer: Matt)

  • Lastly, this proposed growing the 6,000 SNX inflation emission entry (which is immediately despatched to Curve’s sUSD pool), to 10,000 SNX per week and redirect the inflation to the vault.
  • In doing so, this SIP aimed to incentivize sETH, sBTC, and sUSD Curve swimming pools to advertise Atomic Swap adoption.
  • The Treasury Council now has the discretion to resolve which curve synth swimming pools to allocate this 10,000 SNX per week, and they’re mandated to spend your entire 10,000 SNX each week

✅ Governance

Voting Exercise will be adopted utilizing these hyperlinks:

1. Optimism Citizen Home badgeholder votes

2. Optimism Grants

  • Matt and Doug participated within the first ever Optimism Grants
  • Cycle 10 roundup will be discovered right here

3. Influenced Optimism Delegates

  • The Ambassadors reached out to Ecosystem companions and inspired them to use as Optimism Delegates
  • Vote outcomes right here
  • Due to this useful and diligent affect, the next companions are actually in Optimism Governance and have awarded 250,000 OP delegations: Lyra, Kwenta, Thales, Polynomial, and dHEDGE

4. LEAP proposal (Lyra)

  • Gunboats and Mojo created a LEAP for Lyra to combine Synthetix Perps V2
  • LEAP-52 has handed and is awaiting audit

5. KIP proposal (Kwenta)

  • Mojo created a KIP for Kwenta to comply with the phrases specified by LEAP-43, and host Lyra Choices for six months

Optimism Governance Discussion board Exercise:

The Synthetix Ambassadors have a serious voice in Optimism Governance. Their respective Optimism Governance Discussion board Actions will be discovered utilizing these hyperlinks:

✅ Integrations

The integrations that the Ambassadors have initiated this quarter have been centered on integrating Synthetix Perps.

Integrations exterior of the Synthetix ecosystem:

1. Mux Protocol (in progress)

2. Nested (in progress)

3. Unidex

✅ COPY Updates

What’s subsequent for the Ambassadors?

  • Pursue additional development methods for Perps V2, Atomic Swaps, Synthetix V3 and formal BD relations
  • Discover alternatives to scale synth provide (Instance: Beefy Technique)
  • Elevated presence in Optimism governance
  • Enlargement of affect in DeFi & DeFi Governance
  • Proceed to develop YouTube channel

Greatest Memes from Q1

The quarter in fact wasn’t with out humor, so listed here are our favourite memes from the epoch:

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