List a synth tracking the ETH:BTC price ratio (sETHBTC), initially to L1 only.
This SIP will add a synth whose price mirrors the ratio of prices between ETH and BTC.
$ETHBTC is one of the most traded pairs in crypto markets, but many users lack a simple vehicle to gain exposure to its upside. An sETHBTC synth gives users one-click exposure to pseudo-delta neutral exposure to ETH's upside.
The sETHBTC synth will function similarly to all other synths, with the exception that the synth trade at the ratio of prices from multiple Chainlink feeds (ETH:USD and BTC:USD, or inverse of BTC:ETH).
Supporting additional assets expands the utility of the Synthetix protocol. Synthetix is uniquely positioned to offer a synth tracking this ratio (sETHBTC) via a synth with custom pricing logic, which greatly simplifies the process of gaining exposure to ETH alpha. The current debt pool composition also provides significant tailwind for supporting the sETHBTC synth, since the debt pool currently carries ~$300M of short sETH / long sBTC skew. Thus, all inflows into the sETHBTC synth will neutralize existing debt pool skew in sETH and sBTC.
Pricing for sETHBTC will be set via an ETH/BTC Chainlink oracle (50bp deviation threshold, as for ETH/USD and BTC/USD). The exchange fee for sETHBTC will be set to 30bp (as with sBTC).
ETH/USD price = $4500
BTC/USD price = $60000
sETHBTC price = 0.075 sUSD
Copyright and related rights waived via CC0.