SIP-348: Enable USDC for Andromeda on Base

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Simple Summary

Configure the Andromeda Base V3 deployment to accept USDC collateral, and enable ETH and BTC markets on Perps V3. Set conservative limits appropriate for integrator testing.


This SIP proposes to configure the Andromeda Base V3 deployment such that it accepts USDC collateral for both LP and perp margin. Limits for both are approrpriate only for integrator testing. Additionally, ETH and BTC markets will be enabled on Perps V3. Focussing on USDC collateral limits the complexity of the deployment, reduces risk and increases alignment with the Base network. The complete Andromeda on Base release also requires SIP-345, SIP-337 and SIP-315.


Configuring Andromeda on Base to accept USDC for LPing and perp margin opens up Synthetix to a new set of users. The initial configuration should be extremely conservative, sufficient for integrator testing only. Once intitial testing is complete, caps can be increased by SCCP as appropriate.



This SIP will conservatively define the Andromeda Base V3 deployment settings to accept USDC as collateral for LPing, and margin for trading Perps. It will also activate ETH and BTC markets on Perps V3. A USDC Spot Market and Wrapper will be implemented so that both LPs and perp traders only have to think about USDC, and utilizes the existing configrtuation capability of the underlying systems. This configuration treats USDC as a constant valued at $1. The spot market wrapper will be used to produce the 1:1 redeemable synth sUSDC for LPing, and swapping to sUSD for perp margin.


The introduction of USDC as collateral, with a constant value, provides an opportunity to test the market's appetite in a controlled manner before adding more complex assets like ETH. By using a spot market wrapper, a 1:1 redeemable synth sUSDC will facilitate Perps trading. The initial limitation to $50k of LP collateral and $10k perp open interest is to prevent any material funds being used during this first stage of mainnet integrator testing. Disabling of minting is a conscious decision to increase the liquidity available to the Perps Market.

Technical Specification

Configure the core system: Require Markets to have 125% collateralization, and require at least 1 days before being able to withdraw collateral

  • minimum_liquidity_ratio = 125%
  • account_timeout_withdraw = 1 day

Enable USDC as collateral, at a fixed price of $1, and maximum of $50k

  • usdc_address = 0x833589fCD6eDb6E08f4c7C32D4f71b54bdA02913
  • registerNode = CONSTANT NODE, 1
  • synthUsdcMaxMarketCollateral = 50000

Disable minting, and set liquidation at 100.005%

  • issuanceRatioD18 = MaxUint256
  • liquidationRatioD18 = 1.005

Global Perps Market configuration

  • maxCollateralAmounts = 10000 ($10k maximum perp margin per account to be conservative)
  • synthDeductionPriority = [0] (no liquidation priority required with only one margin type)
  • maxPositionsPerAccount = 5 (max 5 positions per account to reduce gas.)
  • maxCollateralsPerAccount = 1 (sUSD is the only perp margin enabled)

Below are the most relevant parameters pertaining to the perp market included in this release:

Perp Market ETH BTC
marketId 100 200
skewScale 100k 1m
maxFundingVelocity 9 9
makerFee 2 bp 2 bp
takerFee 5 bp 5 bp
maxMarketSize 4.5 0.25
initialMarginRatio 8.92 13.35
maintenanceMarginScalar 0.28 0.28
minimumInitialMarginRatio 200 bp 200 bp
maxLiquidationLimitAccumulationMultiplier 1.5 1.5
maxSecondsInLiquidationWindow 30 30
minimumPositionMargin 50 50
lockedOiRatio 0.5 0.5
maxLiquidationPD 5 bp 5 bp
flagRewardRatio 3 bp 3 bp

Aside from the above, the below are generic for all perp markets that will be deployed:

  • Endorsed Liquidator: 0x11233749514Ab8d00C0A5873DF7428b3db70030f
  • Settlement Delay / Commitment Price Delay: 2 seconds
  • Settlement Window: 60 seconds
  • Strict Staleness Tolerance: 60 seconds
  • Relaxed Staleness Tolerance (Default): 1 hour

Subsequent to the initial initial release, parameters reconfigurations will be proposed via SCCPs'. Please note that the full list of parameters configured for this release can be found in this PR.

Test Cases

Test cases will be provided with the implementation to ensure that the Andromeda Base V3 deployment correctly accepts USDC and that ETH and BTC markets operate as expected on Perps V3.

Configurable Values (Via SCCP)

All variables of the deployed V3 system.

Copyright and related rights waived via CC0.