Skip to content

What’s the Andromeda Launch?

The Andromeda Launch marks a big development for Synthetix, that includes the deployment of Core V3 and Perps V3 concurrently, the addition of latest collateral within the type of USDC, and deployment on a brand new blockchain, Base. This launch will propel Synthetix right into a multi-chain protocol, leveraging the capabilities of the Optimism Superchain.

This preliminary rollout combines Core V3 and Perps V3, aiming to draw new builders, liquidity suppliers, and neighborhood members to the Synthetix ecosystem.

The Andromeda Launch is underpinned by a number of SIPs, which offer detailed technical specs for this replace. These embrace:

  • SIP-336 – Deploy Synthetix V3 Core on Base 
  • SIP-338 – Deploy SNX token through Base Bridge  (outmoded if 350 passes)
  • SIP-350:  SNX Token Bridging through Wormhole  (outmoded by 338 if fails to go)
  • SIP-337: Perps v3
  • SIP-346: Perps v3 Integrator Incentive  (20% charge share for integrators)
  • SIP-348: Allow USDC for Andromeda on Base    
  • SIP-345: Buyback and burn SNX on Base  (50% charge share for SNX through buyback and burn)

Constructing on the success of Synthetix Perps

Synthetix Perps V2 achieved exceptional success, producing over $35+ billion in buying and selling quantity, attracting tens of 1000’s of distinctive merchants, and accruing over $25 million in charges for SNX Stakers.

Constructing on this basis, Perps V3 introduces a number of upgrades to enhance the buying and selling and developer expertise:

  • Cross Margin: Permits merchants to open a number of positions throughout totally different markets, topic to a restrict of 1 place per market. The account margin worth fluctuates based mostly on the PNL of every open place.
  • Multi Collateral: Helps a number of collateral sorts, at the moment restricted to synths registered with the V3 spot market. That is anticipated to incorporate USDC, sUSD, sETH, sBTC, and different governance-approved spot synths.
  • Account-Based mostly Entry Controls: This characteristic allows the delegation of account permissions, resembling modifying collateral and managing positions, to further addresses, enhancing extensibility and composability.
  • Liquidation Enhancements: Implements gradual, non-sandwichable liquidation of huge positions, with configurable delays between partial liquidations.
  • Deterministic Settlements: Improves the settlement course of to make sure that the execution worth is the earliest legitimate worth post-commitment, minimizing the affect of community congestion.

Integrating companions like Polynomial, Kwenta, Infinex, dHEDGE, and lots of others, have confirmed their deployment to Base, underscoring their essential function within the upcoming success of Andromeda and Perps V3.

The Essence of Testing in Andromeda

The Andromeda Launch serves as a testing floor for brand new developments. The introduction of USDC as a brand new collateral sort on a brand new chain presents a number of areas to discover. Key features beneath testing embrace:

  • USDC as Collateral & Demand on Base: Assessing the affect of USDC collateral on liquidity and stability.
  • Demand for Buying and selling Perps & Derivatives on Base: Evaluating the shift of merchants from CEXs and different chains to Base.
  • USDC Wrapper: Evaluating the affect of simplifying dealer interactions through the use of USDC in front-end integrations and wrapping it into sUSD for backend Synthetix contracts.
  • Sensitivity to Payment Share: Analyzing the response of USDC LPs and SNX stakers to variations in charge share percentages, alongside integrator responses to integrator charge share.
  • Seamless Integration: Monitoring the suggestions from integrators relating to Core V3, Perps V3, dealer expertise, and LP expertise.

Isolation of the Andromeda Launch on Base

The Andromeda Launch on Base is an remoted deployment, that means it is not going to be linked to the Optimism/Ethereum Mainnet V2X system. This separation allows distinct testing and growth in Andromeda, permitting for direct comparisons with the present Optimism Perps V2 deployment.

Moreover, this isolation necessitates the SNX buyback and burn because the mannequin of distributing charges to SNX holders. As per SIP-345, the charge share has been set to 50%.

Defining Success for Andromeda

Success within the Andromeda launch shall be measured by:

  • Secure and Environment friendly Market Operations: Making certain seamless performance of the perps market and efficient utilization of USDC as collateral.
  • Sturdy Liquidity Provision and Buying and selling: Sustaining robust liquidity and energetic buying and selling utilizing Perps V3.
  • Optimistic Person Expertise: Facilitating easy and environment friendly transactions for LPs, merchants, and integrators.

Preliminary Rollout: What to Count on

The preliminary deployment of Andromeda on Base is tentatively scheduled for December as a mainnet alpha with restricted capabilities that may progressively improve earlier than a public launch. This part will embrace the launch of Core V3 and Perps V3 on Base with USDC as collateral and USDC utilization for merchants utilizing Synthetix Perps.

Andromeda: LP vs Dealer Perspective

The Andromeda expertise differs for Liquidity Suppliers (LPs) and merchants:

  • For LPs: The introduction of USDC as collateral affords new alternatives for liquidity provision and charge technology. The LP (aka staker) expertise shall be improved by new integrations from dHEDGE/Toros that auto declare and auto compound rewards for LPs.
  • For Merchants: Enhanced buying and selling expertise with Synthetix Perps, augmented by the inclusion of USDC for higher flexibility. Merchants will get to make the most of the companions they know and love, together with Kwenta, Polynomial, Infinex, and lots of others, to entry Synthetix Perps. 

The Way forward for Synthetix with Andromeda

The Andromeda launch represents a transformative step for Synthetix, aiming to bolster its place as a cutting-edge DeFi protocol. It brings expanded collateral choices, improved buying and selling experiences, and revolutionary options. The neighborhood’s involvement in testing and governance will play a vital function in guiding Synthetix’s future multi-chain plans.

continue reading