Simple Summary

This SCCP proposes to perform a series of system configuration changes, ahead of the bedrock release in order to safeguard Synthetix stakers and limit the adverse impact on the network from the 2 to 4 hour disruption on optimism.

On the 4th of June at 16:00 UTC, the maxMarketValue would be reduced to zero on all active perp market and would be restored back to previous levels after the update is completed. Furthermore, 10 minutes before bedrock is set to begin (i.e. 6th of June at 15:50 UTC) the below system configuration changes will be implemented, and restored back to their original state after the optimism release is completed:

• Set all the perp markets to a paused state
• Pause Issuance on both Ethereum and Optimism
• Pause Exchanges on Optimism
• Pause the snx and sUSD bridge on Ethereum and Optimism
• Pause all perp markets on Optimism

Abstract

Below is a description of the changes involved:

• The maxMarketValue is the maximum amount of open interest allowed on long and short positions in a given perp market. Setting the maxMarketValue to zero effectively puts all existing position into close-only-mode. Therefore new positions cannot be opened.
• Pausing Issuance will disable all snx stakers ability to mint or burn sUSD.
• Pausing Exchanges will disable all synth traders ability to trade synths via the Synthetix contracts. Note that exchanges of synths whether on Curve or Uniswap would not be affected and synths could continue be transferred between accounts without disruption when the network is active.
• Pausing the bridge will disable users' ability to send SNX and sUSD from L1 to l2 and vice-versa.
• Pausing perp markets will disable users ability to interact with their open perp positions.

Motivation

The main motivation is to cater for the significant disruption in service caused by bedrock and safeguard the Synthetix Debt Pool from the adverse market events during that period.

Copyright

Copyright and related rights waived via CC0.