SNXweave Weekly Recap 157

November 6, 2024

The next publish comprises a recap of reports, tasks, and necessary updates from the Spartan Council and Core Contributors from final week.

State of the Community’s Q3 2024 Wrap-Up

December 23, 2024

MEV decision: Are we there but?

December 22, 2024

👉TLDR

Final week Fenway introduced SIP-411, to accumulate Kwenta and relaunch Synthetix Trade.
Fenway believes that bringing the alternate again below the Synthetix umbrella brings the protocol nearer to the top person of the product: merchants.
SIP-411 additionally creates alternatives for higher branding, much less dependencies on exterior suppliers, and a greater product.
Just a few different choices have been thought-about earlier than deciding on this acquisition proposal. (see beneath for particulars)
The proposed funding technique is to mint a bit of over 9 million new SNX tokens to cowl the price.
This proposal would NOT imply the top of third-party integrators.
Group members had some questions in the course of the presentation. (see beneath for particulars)
To be able to move, this may should be permitted by each the Spartan Council and Kwenta Council, so keep tuned because the proposal progresses.
Multi-collateral perps is stay on Kwenta, that includes tBTC because the wrapped-Bitcoin collateral asset of selection. (see beneath to learn why Synthetix selected Threshold Community’s tBTC)

Spartan Council and SIP updates

Current on the October 30, 2024 Spartan Council Weekly Venture Sync:
Spartan Council: Cavalier, cokaiynne, Fenway, Spartan Glory
Core Contributors: Ana, Marcus, meb, robin, Samuel, Tim, troy

The brand new Spartan Council had their first public assembly final week, the place they began off sturdy with a brand new proposal to additional shake issues up. Fenway introduced SIP-411, to accumulate Kwenta and relaunch Synthetix Trade. The present proposal is for a 1 KWENTA to 17 SNX alternate charge by way of a token transaction, which values Kwenta at about $13 million. Ought to this move, there will probably be an preliminary 3-month lock adopted by a 9-month linear vesting interval.

One of many most important goals of SR-2 was to reassess selections which have been made up to now, one in every of which being the choice to separate the frontend from the backend. Bringing the alternate again below the Synthetix umbrella brings the protocol nearer to the top person of the product: merchants. It additionally alleviates a number of the ache factors that the protocol has encountered lately and creates a whole lot of alternatives, equivalent to:

Higher branding: A Synthetix product being related to the Synthetix title.
Much less dependencies on exterior suppliers: As soon as a product is able to ship, it can already embrace frontend assist, which can eradicate the supply choke level of getting integrators onboard.
Higher product: Proudly owning and working the frontend will create the circumstances for a significantly better product expertise.

Fenway defined that a number of choices have been thought-about earlier than deciding on this acquisition proposal:

1. The first choice was to construct a frontend internally. Nonetheless, the cons of this outweighed the professionals, as the price of incentivizing customers to modify over to the brand new platform could be excessive and the time to ship a product could be too far sooner or later.

2. The second choice was to accumulate a frontend, particularly Kwenta, which is the one choice that was selected after all. The professionals of this have been ample since Kwenta was once a part of Synthetix, has very sturdy ties with the undertaking, and customers are already accustomed to the buying and selling expertise. The largest con for this feature is that it’s costly to accumulate a frontend.

3. The third and final choice that was floated was to rent an unbiased workforce. However this primarily had the identical points because the integrator mannequin, and exterior groups are additionally more likely to have totally different strategic goals.

Fenway went on to clarify how this acquisition could be funded. The proposed technique could be to mint a bit of over 9 million new SNX tokens to cowl the price. The choice to fund this buy by way of token inflation was not taken flippantly, however Fenway believes the acquisition will generate extra worth for the protocol than the $13 million price ticket and can subsequently be a superb use of the funds. Plus, the Treasury shouldn’t be at the moment ready to fund the acquisition whereas sustaining the runway wanted to fund operations.

It’s additionally necessary to notice that this proposal would NOT imply the top of third-party integrators — the protocol will stay dedicated to constructing an open-source liquidity layer and can proceed to incentivize the event of aggressive merchandise utilizing that useful resource.

A group member named 50 had some questions in the course of the name and was introduced up on stage to affix the dialogue. He first requested a doc that explains how the acquisition phrases have been decided, so Fenway has agreed to supply a doc with that data.

He then requested why liquid KWENTA is being traded for locked SNX, and it was answered that KWENTA doesn’t commerce in excessive sufficient every day volumes to assist bigger trades, as it’s generally recording slippage of 25% for orders price $50k whereas SNX slippage is round 2% on $250k orders. Fenway added that the lock will even function a chance for Synthetix to show to the Kwenta group over the primary 3 months why they need to keep invested within the protocol.

Lastly, this acquisition was supplied to Kwenta reasonably than different exchanges due to the historical past between the companions, so Fenway believes that this merging of communities will assist generate extra worth for tokenholders and create a cohesive, unified, and passionate military of Spartans. To be able to move, this may should be permitted by each the Spartan Council and Kwenta Council (KIP-138), so keep tuned because the proposal progresses.

In different information, multi-collateral perps is stay on Kwenta, that includes tBTC because the wrapped-Bitcoin collateral asset of selection. Synthetix selected Threshold Community’s tBTC as a result of it’s constructed for DeFi and is trusted by the group, boasting 82 integrations throughout 6 chains, 1.6K+ holders, and $293M+ in provide. Threshold’s tBTC additionally guarantees:

Permissionless minting and redemptions
24/7 on-chain auditable reserves
Decentralized custody and bridging
1:1 backing with BTC

Threshold can be an energetic workforce throughout many ecosystems, and has expanded decentralized bridged BTC alternatives equivalent to stBTC, thUSD, SATs, Mezo, and so forth. So head over to Kwenta to commerce over 80 new Perps markets and 4 new collateral choices, that includes tBTC, ETH, USDe, and USDx!