Simplifying SNX Staking with Debt and Escrow Migration to Optimism

Synthetix has applied SIP-237, an improve that can simplify the staking expertise by permitting customers emigrate their staked SNX and sUSD debt to Optimism with out burning present sUSD debt.

Synthetix has applied SIP-237, an improve that can simplify the staking expertise by permitting customers emigrate their staked SNX and sUSD debt to Optimism with out burning present sUSD debt.

Simplified Migration from Ethereum to Optimism

Earlier than the implementation of SIP 237, migrating staked SNX from Ethereum to Optimism required customers to burn their present debt, a course of that hamstrung customers who had already deployed sUSD into hedging and farming methods. Nevertheless, with the brand new system launched by SIP 237, stakers can migrate their debt place and escrowed SNX from Ethereum to Optimism.

The Mechanism: How Does It Work?

The core of this migration lies within the utilization of debt shares, launched in SIP-185. This mechanism ensures that when stakers migrate, their vested SNX and debt shares are transferred from Ethereum Mainnet to Optimism. This switch consists of:

1. Debt Shares (SDS): All debt shares are moved from L1 to L2.
2. Unstaked Steadiness (SNX): Full SNX steadiness is migrated.
3. Escrowed SNX: Revoked on L1 and recreated on L2.

Advantages of the Migration

• No Must Burn Debt: Stakers can migrate with out the trouble of unwinding and burning their debt.
• Unified Charges: Publish-migration, customers obtain the identical price distribution no matter the place they stake.
• Gasoline Value Financial savings: Being on Optimism affords important financial savings on gasoline prices.
• Automation Prospects: Because of the low gasoline price atmosphere and integrations with Gelato, customers can robotically mint primarily based on their user-selected parameters.

How you can Migrate

For these trying to migrate, it is so simple as heading to the hyperlinks under: vest your escrow, migrate your escrow, after which migrate your debt.

Any Questions?

You probably have any questions or feedback, be a part of the dialog on Discord.