kain.eth Profile picture
7 Nov, 19 tweets, 3 min read
Lots of @synthetix_io FUD going around lately. A thread on my perspective on the state of the project. This year has been painful in many ways, scaling has been slow, but I said from the start of the year the L2 transition was going be rough. Despite this I’m still bullish.
We have been in this position multiple times in the past. The CC’s tend to take on many simultaneous threads, probably too many. This leads to a point where there are 3-4 major improvements at 90% completion. It feels like stagnation but only upon a cursory glance.
Perpetual futures are done, we had a testnet trading competition last month. Mainnet will happen after the final OΞ regenesis this month. Once they are live, trading incentives will finally be enabled.
L2 is pure fire, it has been slower to get here than anyone wanted but when you look at the UX of projects like @lyrafinance it is clear that a ton of L1 projects will be migrating across once contract deployment is open.
L2 exchanges are fully composable, we lost composability years ago on L1 and it was one of the biggest impediments to Synthetix growth. It will take 3-6 months but a new ecosystem of projects will grow around Synths on L2.
The debt pool merge is coming, once we have that the rest of SNX collateral will migrate to OΞ. That will allow for Synth fungibility across L1/L2 which will mean Synths can go wherever demand is greatest.
It will also open up the possibility for Synths to migrate to other L2’s and even potentially other L1’s.
SIP-120 is going live next week, we will finally have a way of reintroducing atomic trades on L1. It has taken a long time (as you can tell by the SIP#…) but it will be worth the time and effort.
The splitting of the V3 team has generated significant progress, the new contract architecture is essentially code complete. The next step is presentation to the V2x engineers and then kicking off the V3Gov module development.
The V3GM will first be applied to Synthetix V2x, this will demonstrate that any project can utilise it to transition their governance to a fully on-chain non-discretionary governance module, without needing to hold token votes for every change.
There are a number of other improvements planned for V2x that will increase the usability and scalability of the protocol.
And we continue to discuss more significant changes to the protocol, even this week @spreekaway revived a discussion around distributing fees to those who use alternative collateral to mint Synths.
We also have retro distributions for KWENTA, AELIN and LYRA to look forward to…
As for what I am doing, I am headed back to Sydney this weekend after several months of travel. I will be helping coordinate the delivery of the remainder of the V2x scope.
Synthetix is one of the most decentralised protocols in the space, people are constantly surprised when I explain how our governance actually works including how core contributors are compensated and managed.
We have paid the high cost of this transition over the last few years as coordination has ben much harder. But you know, zero subpoenas so far so 🤷‍♂️
No one person has control of the destiny of Synthetix, but the current core contributors and governance participants are collectively the best we have ever had imo. No one can replace the OG’s but we have a much larger and more diverse group of people contributing today.
I am bullish on DeFi in general, I think the narrative has tarnished a little over the last year, but the rise of production ready L2s will change that and we will start to see genuine innovation from L2 native protocols.
Bull or Bear Synthetix keeps building, our community genuinely loves solving hard problems, and we still have many to solve. The project isn’t going anywhere.

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More from @kaiynne

27 Oct
As promised, a thread on where DeFi goes next and why DeFi summer was not the zenith. I’m feeling particularly self-indulgent so this is going to be a long thread.
Original tweet I am responding to is here.
It is irrefutable that every og DeFi token has been rekt against ETH in the last year, in hindsight this really shouldn’t be surprising. During DeFi summer the blue chip projects were not just the dominant ETH narrative they were the only narrative.
Read 25 tweets
27 Oct
Here is part 2 due to 25 tweet limit on threads 😓.
When was the last time we hit a 50m+ install base of a transformational platform? It was 2010. Here is the first three years of iPhones sales.
Instgram, Uber and other Apps that launched as the iPhone install base scaled were able to tap into this new platform to grow at phenomenal rates.
Read 18 tweets
8 Aug
I’ve been thinking a lot lately about the intersection of DeFi, NFTs, art and gaming lately. Putting my current thoughts into a thread…
The first thing I want to highlight is the difference between attention and impact. Many things that garner high attention are not impactful, think the latest marvel movie. While many things that are high impact get minimal attention, think novel mathematical proofs.
As excited as we have all been about DeFi the reality is that it falls into the category of finance, which is typically high impact but low attention. The one offsetting factor being that speculative manias are often high attention. As are market implosions.
Read 12 tweets
22 Jun
One month later, checking in. Balance of probabilities definitely shifting towards bear market, but I don’t think we have confirmation yet.
In late May we were in -40% now -50%+, the further we go the more unusual this would be in historical terms as a bull market correction. But this is already historically a weird bull market.
A few points that really stand out and may have head faked the OG’s. I will mainly focus on BTC here. The biggest imo is the ATH->ATH ratio.
’11 ->’13 ratio ~30x
’13 -> ’17 ratio ~20x
’17 -> ’21 ratio ~3x 🤯
Read 13 tweets
28 Apr
Something I’m a little concerned about given the recent interactions I’ve had with the BSC and SOL communities is that they seem to be genuinely gaining organic traction. Much more so than say EOS or Tron last cycle. I have some thoughts about this…
Firstly Solana is pretty clearly an upgrade on the previous generation of ETH killers. Primarily because they have managed to hide the scaling trade-offs much more effectively.
The likelihood of EOS devolving into plutocracy was called out by many people including Vitalik pretty early on, but obviously the reality was even worse than most people including myself expected. And it was fairly easy to point out where they had forsaken decentralisation.
Read 13 tweets
1 Feb
Now that sXAG (silver) markets are live I want to provide some context on the situation for those who have not been living in the Synthetix discord for the last few years.
Firstly, sXAG is a Synthetic ERC-20 (lives on Ethereum) silver token that tracks the price of silver via this @chainlink oracle: data.chain.link/xag-usd.
This allows anyone in DeFi to get price exposure to silver without needing a traditional brokerage account or paying crazy spreads on bullion. Synthetix also supports sXAU (gold) and sOIL (Brent Crude Oil) as well as a number of forex currencies like GBP and AUD.
Read 20 tweets

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