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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