In this Twitter Spaces of The Optimist, which took place on September 14th, 2023, Subli is joined by Sunny and Griff to discuss the launch of Synthetix V3, the features of V3, and Base deployment. Read our notes below to learn more.
Background
- Subli (Host) – Founder of The Optimist
- Charlie (Host) – Co-Leader at The Optimist
- Sunny (Guest) – Contributor at Synthetix
- Griff (Guest) – Growth at Synthetix
- Synthetix – a protocol that provides liquidity for permissionless derivatives like perpetual futures, options, parimutuel markets, and more across EVM chains.
Permissionless Market Creation
- Subli introduces the concept of permissionless market creation in Synthetix V3 by emphasizing that the new version allows anyone to create their own markets without needing approval from the Synthetix team.
- Sunny elaborates on the technical aspects of permissionless market creation. He mentions that the migration from V2 to V3 is crucial for enabling this feature.
- Griff talks about the importance of liquidity in these permissionless markets. He explains that the protocol aims to orchestrate liquidity providers (LPs) to pools and then to markets.
- Subli discusses the testing phase for Synthetix V3. He states that Synthetix is currently testing how LPs can be efficiently directed to the newly created markets.
- Sunny adds that the feature is designed to lower the entry barrier for new projects.
- He mentions that this will make it easier for smaller projects to tap into existing liquidity pools.
Liquidity and Business Development
- Sunny discusses the role of Synthetix in providing backend efficiency and liquidity for other projects.
- He talks about the importance of attracting projects to build on top of Synthetix.
- He mentions that the goal is to make it easy for developers to tap into liquidity sources.
- He discusses the cold start problem for new projects, emphasizing the challenge of attracting both liquidity providers (LPs) and traders. Sunny says that Synthetix aims to solve this problem by providing initial liquidity.
- He discusses the future vision of Synthetix becoming a liquidity layer for derivatives. He talks about the technical aspects, including cross-chain pool synthesis, to achieve this vision.
Marketing and Incentives
- Griff says that the marketing perspective of Synthetix aims to attract builders and developers.
- He talks about the importance of providing incentives to bring more projects into the ecosystem.
- Sunny mentions fee-sharing and co-marketing opportunities as part of the incentives for new projects in the Synthetix ecosystem. He emphasizes that these incentives are designed to make Synthetix an attractive platform for development.
- He discusses the role of governance in deciding the types of incentives to offer. He says that community input is vital in shaping the incentive structures. Sunny mentions that there are ongoing incentives for using front-ends like Polynomial.
- He encourages users to try these platforms and earn $OP tokens while trading.
Governance and Community Involvement
- Sunny discusses the role of the Spartan Council in governance decisions within the Synthetics ecosystem.
- He says that the council is a representation of the community’s voice in governance matters.
- Sunny mentions that the community has expressed a desire for minimized governance and more decentralized decision-making.
- He says that this sentiment is shaping the future governance structure of Synthetix.
- Subli talks about the importance of community involvement in shaping the protocol.
- He emphasizes that community input is vital for the success and growth of Synthetix.
- Sunny discusses the role of governance in deciding incentives and other key features of the protocol.
- He mentions that governance decisions are often made through Synthetix Improvement Proposals (SIPs).
- He talks about the ongoing discussions in governance about deploying Synthetix on different chains like Base.
- He mentions that these decisions are still being worked out and will be subject to community approval.
Cross-Chain Liquidity and Technical Vision
- Sunny discusses the technical vision of Synthetix becoming a liquidity layer for derivatives.
- He talks about the importance of nailing the cross-chain synthesis of debt to achieve this vision.
- He elaborates on the concept of cross-chain pool synthesis, and he mentions that pools can propagate their delegated collateral across different networks, making collateral available on different networks to back the perpetual markets.
- He discusses the “flywheel effect” where attracting more collateral on other networks will increase the open interest (OI) caps on perpetual products.
- Sunny talks about the ultimate vision of having pools synthesized across all networks.
- He mentions that the tools for achieving this vision are not yet ready but are expected to be available soon.
- He discusses the concept of chain abstraction, where users can access the protocol on any chain they prefer.
- Sunny talks about the challenges of achieving this vision, including the need for a different messaging protocol.
- He discusses the potential of using Chainlink’s Cross-Chain Interoperability Protocol (CCIP) or other messaging systems for this purpose. He clarifies that they are agnostic about the messaging system to be used.
User Experience and Chain Abstraction
- Sunny discusses the importance of user experience in attracting users to the Synthetix platform.
- He talks about the need to make the user experience as seamless as possible to attract people from traditional finance.
- He mentions the concept of chain abstraction, where the user experience is designed to be chain-agnostic.
- Sunny discusses the vision where users can access the Synthetix protocol on any chain they prefer, without worrying about liquidity.
- He talks about the challenges of achieving this vision, especially in terms of bridging risks and the steep learning curve associated with using different chains.
- He mentions that achieving this would be a significant milestone in terms of user experience.
- Sunny says that achieving chain abstraction would allow users to tap into liquidity and protocols on different chains without having to bridge assets. He emphasizes that this is something users immediately think about once they understand how DeFi and crypto work.
- He talks about the future feasibility of this vision, stating that it’s becoming more and more achievable.
- He mentions that it’s an exciting prospect for users who are looking for a seamless experience across different chains.
Deployment on Base and Testnet
- Sunny says that Synthetix will be deployed on Base. He talks about the testnet trading competition to test the system end-to-end, including the V3 core contracts.
- He mentions that the governance has approved a Synthetix Improvement Proposal (SIP) for deployment on Base.
- He says that the core contracts will probably be deployed there soon but will be paused for the time being.
- Sunny talks about the challenges of deploying on Base, including the need for enabling collateral and markets.
- He states that these decisions are still being worked out and will be subject to community approval.
- He discusses the timeline for deployment, mentioning that it will likely happen in the next couple of weeks to a month or two.
- Sunny emphasizes that the deployment will be quick to Optimism but will be ready to go for Base in the meantime.
- He mentions that the governance will have an opportunity to encourage folks to provide liquidity into the Synthetix V3 system on Base.
Important Links
- Listen to the Twitter Spaces
- Follow Subli on Twitter
- Follow Charlie on Twitter
- Follow Sunny on Twitter
- Follow Griff on Twitter
- Follow The Optimist on Twitter
- Follow Synthetix on Twitter
Information
- Medium: Twitter Spaces
- Show: The Optimist
- Show Title: Synthetix <> The Optimist
- Show Date: September 14th, 2023