huuuuge perps v2 improvements coming for @synthetix_io soon 👀
there are 3 proposals in draft right now - sip 279, 280, 281. they were recently presented, votes happening soon, and audits are scheduled for late oct. let’s talk abt them quickly
#snx #synthetix #perps
/thread
first, why?
• larger io caps
• lower/improved fees
• incentives to maintain market skew
• allow for iterative development
sip-279 (sips.synthetix.io/sips/sip-279/) changes funding rates, introduces a premium/discount (read: slippage) on trades but overall largely aims to facilitate larger io caps and add core mechanisms to greatly improve market skews.
main benefits?
• funding rates don’t vanish if/when skew hits 0. i.e. incentives
• stable funding rates
new funding is pretty neat tbh. i’ve deep dived, talk pros/cons, and drawn simulations in a python notebook if you want to understand more github.com/davidvuong/per…
sip-280 talks contract upgradeability (sips.synthetix.io/sips/sip-280/). it should be obvious now but bugs/exploits can/will happen and software eng is generally iterative/flexible (unless you’re living in 2010 ofc).
...cont.
perps v1 contracts are immutable. pros/cons to this but the cons are that immutable contracts are neither iterative nor flexible. we need upgradeability to resolve bugs/patch exploits and add new features quickly to stay competitive.
finally sip-281 (sips.synthetix.io/sips/sip-281/). these are long overdue fixes/improvements to core functionality. they’re simple but needed. in short,
...cont.
• proportion of size in an order that flips market skew now charged based on taker fee. i.e. #snx stakers properly rewarded
• time based cmpt. added to next-price (mv: delayed orders) these orders are now executable after n seconds, even if price feeds do not update!
... cont.
benefits? mostly quality of life. traders can benefit from lower fees without being beholden to price feed price deviations/slow heartbeats and the protocol still benefits from async orders
this is just the tip of the iceberg. we have more features brewing but we’re starting with just these for now.
... like hybrid oracles to reduce price latency/fees 👀
once passed, they’ll be fully tested, audited, and hopefully deployed to mainnet sometime in nov. lfg
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