SIP-393: Launch Degenthetix on Base

Simple Summary

Add a new Pool and Perps Market to V3 on Base, explicitly for experimenting with long-tail or experimental assets for perps trading.

Abstract

This proposal outlines a plan for a new Synthetix V3 Pool on Base called “Degenthetix Pool”, that backs a new Market called "Degenthetix Perps Market". This will allow for the trading of long-tail assets with a large demand for perps trading with separate liquidity from the primary Spartan Pool.

Motivation

Given the nature of Synthetix V3’s design, we have the ability to create more experimental Pools and Markets with completely separate risk profiles and exposure to the primary Spartan Pool. There is desire in the market to trade perps on long tail assets, and sufficient funding rate parameters could enable this to be profitable for LPs. A Pool explicitly created to collateralize a Market for trading highly demanded but long-tail assets allows for this testing ground to satisfy that demand, separate the risk, and trial assets for their eventual absorption into the Spartan Pool.

Technical Specification

The pool and market will be owned by the Spartan Council, where any changes to the listed assets or the configurations will need to go through the same governance process as the Spartan Pool, but with less strict requirements given the nature and goal of this pool.

Create a new pool, setting the Spartan Council as the owner and the name as “Degenthetix”.

• createPool(2 , [Spartan Council])
• setPoolName(2 , “Degenthetix”)
• Accepted collateral: USDC

Initialize a new “Degenthetix” supermarket for the trading of AERO, VELO, PRIME, MAGA, BODEN. We are also looking to add a ratio of MAGA/BODEN to act as an election market.

Set OI caps for each asset respective to their market cap in units

• MAGA: 400,000

• AERO: 400,000

• MAGA/BODEN: 300,000

• PRIME: 200,000

• BODEN: 200,000

• VELO: 150,000

• setInterestRateParameters so that asymmetric funding applies at all levels of LP utilization, increasing the earnings to LPs: lowUtilizationInterestRateGradient = 0 interestRateGradientBreakpoint = 0 highUtilizationInterestRateGradient = 1 See https://sips.synthetix.io/sips/sip-354/ for more detail

Copyright

Copyright and related rights waived via CC0.