Quarterly Report for Synthetix, Quarter 4 of 2023: October — December.
👉This autumn Highlights
⭐ Spartan Council/CCs: Andromeda Launch & Tokenomics
⭐ Grants Council: Watcher Web page Enhancements
⭐ Ambassador Council: OP Grants & Retroactive Public Items Funding help
We have now lots of large information to assessment for the ultimate quarter of 2023 and as at all times, let’s begin with the highlights!
The most important achievement by far this quarter was the planning and execution of the Andromeda Launch on Base. In October, Kain launched a weblog publish detailing a collection of experiments that the protocol ought to implement in an effort to check product demand and market match. He named the primary of those experiments “Andromeda.” With the brand new flexibility of V3, Andromeda could be a siloed deployment on a brand-new OP stack L2 — Base! This deployment would solely help Perps markets and could be collateralized by USDC with the aptitude for supporting ETH Liquidity Provisioning (LPing) as nicely. The concept was to create a sandbox to guage demand for various collateral varieties, sensitivity to charge sharing and different incentives, and most of all, demand for perps buying and selling on Base.
There was broad help for this plan from the Spartan Council, and within the means of getting this launched, charge sharing proposals with each SNX holders and Integrators had been authorised for Andromeda. The contracts had been deployed to Base mainnet firstly of December following a remarkably profitable testnet competitors earlier within the Fall. Buying and selling and LPing might be open quickly with conservative OI caps following the Perps V2 launch technique. Perps V2 went on to facilitate $43 billion in buying and selling quantity after its gradual begin, so we might be intently monitoring Perps V3 on Base and ultimately different chains!
Talking of V3, the Grants Council spent lots of time this previous quarter making ready the Watcher web page for V3. A couple of 12 months in the past, they realized that there was a spot in protocol knowledge and so they got down to clear up that downside. After a number of iterations, the Watcher Web page was ultimately born. Publicly obtainable protocol stats are a vital a part of how the protocol markets its success and attracts buyers. Since V3 makes use of a brand new set of contracts, as it’s supposed that V2 and V3 run alongside one another for a while, the Grants group oversaw the backend improvement required to include V3 knowledge in the identical place that the group has come to know because the hub for protocol knowledge.
The Ambassadors additionally had an impressive quarter serving to to safe OP grants for a number of protocols within the Synthetix ecosystem together with Kwenta, Lyra, and Cannon. OP grants assist protocols incentivize exercise that drives customers to Optimism. The AC additionally performed an instrumental position in getting over 750,000 OP allotted to numerous ecosystem companions for Retroactive Public Items Funding (RPGF) in Optimism’s RPGF Spherical 3.
👉Challenges
Although some headway was made on tokenomics this quarter, there may be nonetheless no closing route for the worth proposition of SNX going ahead. As talked about within the highlights, USDC collateral was lastly added as an choice, but it surely was carried out so in a siloed deployment to keep away from competitors with SNX staking. The most important concept that has been floated up to now to resolve that is turning off inflation. For these not prepared to stake, an inflationary token presents an funding hurdle. Some buyers will keep away from the undertaking all collectively, fearing their place might be diluted over time quicker than the undertaking provides worth. That is as a lot a technical actuality as it’s an optics downside for the protocol — after you have been labeled hyperinflationary, it’s troublesome to shake that tag. Kain, as soon as once more, proposed turning off inflation for good this quarter, but it surely required some iterating to get it over the road and a few coordination with a number of the different tokenomics SIPs. Particularly, the Buyback and Burn SIP.
Because the Andromeda launch started to take form, there have been questions on how that buying and selling exercise would accrue worth to SNX stakers. In spite of everything, it was to be a very siloed deployment with USDC-solely LPs. Some members of the Spartan Council voiced help for utilizing a number of the new options in V3, such because the rewards supervisor, to deliver these charges immediately again to SNX stakers on one other chain. The issue is, at this level, it’s nonetheless not clear that there might be demand for this product on Base, which is a part of the explanation why the experiments are being performed. A extra elegant SNX Buyback and Burn mechanism was advised to deliver worth to stakers in a extra roundabout method. As a substitute of transferring these charges again to Optimism, SNX might be transferrable to a contract Base that may buy that SNX with a portion of the charge revenues collected from merchants. Since this may immediately affect the inflation SIP, there was some coordination required to get each over the road and the Buyback and Burn SIP simply barely made it with 5 votes in favor.
The protocol additionally took a giant step this quarter in direction of addressing the integrator charge share difficulty. The ultimate break up for the Base deployment is about at 20% for Integrators, 40% for SNX stakers and 40% for Base LPs. This was, nonetheless, solely agreed to for Base, which continues to be an unknown amount. Whereas the integrators would have appreciated to see that charge share proposal prolonged to all deployments, the last word determination was to incorporate it within the Andromeda experiment and use the information from that deployment to tell what the incentives will appear to be on Optimism, in addition to future deployments. Along with testing demand for Perps on Base, this will even check integrators’ means to immediately drive quantity to totally different deployments.
👉Protocol Stats
Overview of Synthetix This autumn Stats: October 2023 — December 2023
👉Spartan Council
This autumn 2023 Spartan Councilors: Adam, Burt Rock, cyberduck, Genefaesius.eth, Jackson, Kain, Millie, ml_sudo
Together with their contribution to the achievement of main Synthetix milestones this epoch, let’s take a minute to assessment every thing else that the Spartan Council was in a position to obtain in simply the final 3 months.
Getting Andromeda over the road was the BIG achievement of This autumn. There weren’t as many authorised SIPs this quarter, however the affect of the approvals within the earlier three months might be felt by the Synthetix group for fairly a while. The quarter started with the testnet competitors, which offered worthwhile knowledge to make the required enhancements to Perps V3 earlier than it was deployed to mainnet. Additionally in October, there was a minor charge distributor difficulty that was corrected through the Phecda Launch on the finish of the month.
In November, the Integrator Charge Share dialogue lastly got here to some settlement. As talked about earlier, the ultimate minimize for integrators might be 20% of the charges generated on Base. All the quantity directed to the Synthetix Perps contracts comes by means of numerous integrators, with the overwhelming majority coming by means of Kwenta. Quite a few proposals have been put ahead to get a portion of the charges handed on to integrators, and it was this quarter’s Spartan Council that lastly reached an settlement.
December was very busy! Initially of the month, the entire contracts crucial for the Andromeda launch had been deployed to Base mainnet. The Council then did the work to deal with the remaining obvious points which will have prevented a profitable launch. The primary was the LP charge share difficulty, which was addressed in SIP-345: SNX Buyback and Burn on Base. The second associated SIP was one to finish inflation in SIP-2043, and the final step was to configure the Andromeda launch to allow USDC collateral in SIP-348. Additionally, throughout the month, the Council authorised a number of SIPs that went out on the Aludra Launch, including 9 new Perps markets to Perps V2.
👉Grants Council
This autumn 2023 Grants Councilors: ALEXANDER, CT, MoneyManDoug, sunny, synthquest
As we highlighted above, the Grants Council had a fairly good quarter of supporting the protocol with numerous tasks and initiatives. So, let’s recap them!
Beginning off robust, the Grants Council labored with TerraBellus over a number of months to deliver this informational governance information. This information offers an in-depth overview of Synthetix governance and its processes, together with:
SIPs/SCCPs/STPs
- How proposal concepts come about
- Proposal drafting and submission
- Proposal presentation
- Voting and implementation course of
Governance
- Councils and different protocol teams
- Council mandates
- Epoch construction
This information is a good place to start out if you happen to’re seeking to study extra about Synthetix governance and the way to get entangled!
Watcher Web page
The Watcher Web page has been an extremely great tool for fairly a while now, however the GC has been constantly enhancing it over the previous quarter. Because of enhancements led by Synthquest, the positioning now additionally consists of favorites, historic account revenue and loss (PnL), commerce historical past on particular person account pages, primary staking stats on particular person account pages, and day by day aggregated views of your favourite merchants. The Watcher Web page continues to be a worthwhile supply of knowledge, offering the entire stats associated to buying and selling knowledge and data.
Bots
Along with their common Synthetix Discord bot upkeep and funds, the Grants Council additionally helped get a brand new bot up and working final quarter: the ETH/BTC ratio bot. This bot gives an correct monitoring of the present ETH to BTC ratio each minute through Dexscreener — shout out to EthBoi for his assist with this one!
A brand new replace for the Telegram bot was additionally launched, with the assistance of Nikita. In case you haven’t used it earlier than, the Telegram Bot is a useful gizmo for monitoring staking. With the brand new replace, it has now undergone an entire overhaul of options, together with:
- A user-friendly and intuitive button menu
- An enhanced and extra versatile notification system
- Repeatable notifications
- Customizable auto-updating dashboard
You should definitely test these bots out, and let the GC know your ideas and suggestions within the grants-council Discord channel.
Spartan Synthverse Mint
As everyone knows by now, the Spartan Synthverse NFT undertaking dropped again in July. The Grants Council labored by means of the primary a number of phases of this undertaking, after which deployed the free mint on the finish of October. That is now in its second stage — the presale for over 7,000 whitelisted customers, with a most of 1 NFT per transaction. There are at the moment fewer than 600 NFTs remaining on this mint, so test it out right here when you nonetheless can if you happen to’re a whitelisted consumer! The third and closing stage following the presale might be a public free mint the place customers should purchase as much as 20 NFTs per transaction — every NFT is free to mint, simply pay fuel!
Retroactive Grants
Subsequent up, the GC issued a number of Retroactive grants this previous quarter, serving to to enhance the Synthetix ecosystem by additional involving the group. A few of these grants included:
- Gelato Automated Minting — donoso_eth, gunboats, informal degen (250 SNX every)
- The brand new up to date Telegram Bot — Nikita okay (500 SNX)
- For open sourcing high-level knowledge analytics and python repos, in addition to serving to up with basic Synthetix knowledge — 0xEvan (750 SNX)
Notifi Integration
Lastly, the Grants Council funded and labored with Core Contributor Matt in October to deliver Notifi to the Synthetix ecosystem and assist enhance the staking expertise. Notifi is a number one supplier of DeFi alerts that brings real-time notifications (therefore the identify) to customers. With Notifi, you possibly can obtain immediate alerts about your staking positions, protocol updates, and different important reminders. These alerts might be enabled immediately inside the staking UI utilizing the bell icon.
It’s tremendous simple to set this up — simply search for the notification bell on the Synthetix Staking UI when you’ve related your pockets, and click on on it to pick out and activate the alerts of your alternative.
Varieties of alerts you possibly can obtain with Notifi embrace:
- Synthetix Bulletins: Keep up to date with vital updates and Alpha immediately from Synthetix
- Liquidation Warning: Get alerted whenever you’re flagged for liquidation
- Liquidation Affirmation: Get alerted when your place will get liquidated
- Account Snapshots: Get a abstract of your portfolio on the finish of every epoch, such as you would with a financial institution assertion
- Declare Reward Reminders: Get reminded when to say your reward on the finish of every epoch
- Governance Updates: Obtain standing updates about key governance proposals and outcomes
- C-Ratio Well being Alerts: Get alerted when your C-Ratio goes above or beneath the edge you set
And all of those might be obtained on Discord, Telegram, and e mail!
What’s subsequent for the Grants Council?
The GC has the next objects on their ongoing/upcoming record:
- Additional time Markets V3 integration
- Debt Migration UI
These have each been within the works for some time, so we’ll preserve you up to date on their progress all through the subsequent quarter!
👉 Ambassador Council
This autumn 2023 Ambassador Councilors: GUNBOATs, Kevin, mastermojo, Matt, Westie
In Quarter 4, the Ambassadors continued to advertise Synthetix by means of their governance participation, partnerships, public items involvement and extra. The Council had three primary focuses throughout This autumn:
- DeFi Governance: Optimism Governance (which concerned Token Home and Citizen Home) and different DeFi DAOs (akin to Arbitrum, Gearbox, Protected, Lyra, Aave, and so on.)
- Integrator help: Present and future — guiding Core Contributors, integrators, and extra by means of the grant course of and serving to safe worthwhile funds
- Advertising and marketing help: Spartan Areas and Integrator Spotlights from the Ambassador twitter account
Now let’s get right into a extra detailed record of what the Ambassador Council completed this previous quarter:
✅ Governance
1. Basic Governance
The Ambassadors make it abundantly clear that every one of their voting is utterly clear. Their voting exercise might be adopted by means of their wallets on Snapshot and Tally utilizing these hyperlinks:
The Council has additionally been growing their on-line engagement this previous quarter, together with introducing two new Twitter collection:
2. Optimism Governance
The Synthetix Ambassadors stay a serious voice in Optimism Governance, and their respective OP Governance Discussion board Actions might be discovered utilizing these hyperlinks:
It’s vital to notice that the Optimism Governance discussion board is barely one space of exercise. Most exercise at this level for OP Grants lives on their Charmverse & Discord. Highlights for the 12 months on this space embrace:
- Kwenta and Lyra had been the 2 most up-to-date tasks guided by means of the OP grants program
- Kwenta obtained 200K OP (roughly ~$680,000)
- Lyra obtained 200K OP (roughly ~$680,000)
- Cannon obtained a 50k OP Grant
- The Ambassadors anticipate to help many ecosystem companions within the upcoming spherical, together with Polynomial, Rage Commerce, Synthetix IPFS node, Synthetix, and so on.
- As of proper now, OP Grants can’t be used on Base, however the Council is working with delegates/the OP basis to maneuver in that route
3. Retroactive Public Items Funding (RPFG)
As we simply mentioned, the Ambassadors are very concerned in Optimism governance. They’ve additionally just lately been extra concerned in OP’s RPGF Spherical 3, and so they created a Synthetix Ecosystem Public Items Listing again in November. This record outlined Synthetix Ecosystem tasks that had been looking for Optimism RPGF, and consolidated them for OP badgeholders. The tasks on this record have put constructing first and have considerably contributed to the expansion of the Synthetix ecosystem, in addition to Optimism as an entire, by onboarding builders, tasks, LPs, and merchants. Urged quantities of OP had been allotted by the Ambassadors within the record primarily based on optimistic affect on the Optimism ecosystem.
ALL of those tasks on the record met quorum for RPGF on this spherical! The full pool for Spherical 3 was 30 million OP (which interprets to round $100 million), and the Synthetix Ecosystem secured 767,165 OP in RPGF (virtually $3 million), which is a HUGE win for the protocol and ecosystem! Under is the whole allocation breakdown:
4. Associate Help
Present Companions
- The Ambassadors have been implementing a trial this previous quarter the place they test in on Companions and work with them on any suggestions they’ve, any help that they request, and so on.
Future Companions
- The Council plans to deal with Perps V3 and Synthetix V3 within the subsequent epoch on the subject of future partnerships. They’re at the moment in talks with future companions to construct on high of Synthetix Perps, both as a frontend or in any other case, and they are going to be persevering with these efforts into the brand new quarter.
✅ Spartan Areas
Spartan Areas continued to function vital group advertising instruments this quarter, with the Ambassadors internet hosting different DAOs on behalf of Synthetix.
1. EigenLayer (Size: 1 hour)
2. Valio & Kwenta (Size: 45 minutes)
3. Infinex & Lit Protocol (Size: 1 hour)
4. Andromeda on Base Launch with CCs (Size: 50 minutes)
✅ Synthetix Governance Proposals
Lastly, members of the Ambassador Council additionally proposed a number of SIPs in This autumn, together with:
1. SIP-338: Deploy SNX Token on Base through Base Bridge (writer: Matt)
2. SIP-2035: Listing TIA on Synthetix Perps (writer: GUNBOATs)
3. SIP-2037: Listing IMX and TRB on Synthetix Perps (writer: GUNBOATs)
4. SIP-2039: Listing MEME on Synthetix Perps (writer: GUNBOATs)
5. SIP-2040: Listing ANKR, FET, GRT on Synthetix Perps (writer: GUNBOATs)
6. SIP-2041: Listing PYTH on Synthetix Perps (writer: GUNBOATs)
7. SIP-2042: Listing BONK on Synthetix Perps (writer: GUNBOATs)
8. SIP-2044: Listing ORDI on Synthetix Perps (writer: GUNBOATs)
9. SIP-2045: Listing JITO on Synthetix Perps (writer: GUNBOATs)
Shout out GUNBOATs!
What’s subsequent for the Ambassadors?
Within the subsequent quarter, the Ambassador Council is aiming to assist information extra tasks within the Synthetix ecosystem on the Optimism and Arbitrum Grant processes. As well as, they intend to proceed:
- Pursuing additional development methods for Perps and Synthetix V3
- Exploring alternatives to scale synth provide
- Growing presence in Optimism governance
- Increasing affect in DeFi & DeFi Governance
👉Greatest Memes from This autumn
The quarter of COURSE wasn’t with out humor, so listed here are our favourite memes from the quarter:
