SIP 69: Update Index Synths Source

AuthorDaryl Lau
Discussions-To(https://discordapp.com/invite/CDTvjHY)
StatusImplemented
Created2020-07-07

Simple Summary

Updating the current index tokens sDeFi and sCEX to include more assets to create a more relevant composition reflecting the industry.

Motivation

The current sDeFi and sCEX indexes need updating with the new token launches of several protocols. This SIP aims to create a more comprehensive index reflective of current times. With a recent market trend shifting to DeFi protocols, the new sDeFi V2 would attract newcomers to the Synthetix Ecosystem. The current sDeFi implementation, misses out several prominent DeFi Tokens that have rose to fame in recent times such as AAVE, UMA, COMP and BAL The current sCEX implementation does not have FTX Token included nor CRO.

Specification

This SIP will update the assets included in sDeFi from SIP-22, in accordance with the weightages agreed upon in a poll to be created. This poll can be done via community votes on Twitter as per the previous rounds of proposals.

Update (Jul 8, 2020):

Daryl has created a live spreadsheet featuring the weighting agreed upon by the community.

Rationale

We will follow the existing protocol and the implementations of the index tokens and only change the assets included and their corresponding weightages. These Synths will both be indices implemented in much the same way as the sCEX/iCEX Synths. iDEFI will have upper and lower thresholds which will be added to the SIP before deployment. For sDeFi; The current Proposed V2 index comprises of COMP(Compound), MKR (Maker), KNC (Kyber Network),SNX (Synthetix), ZRX (0x),REP (Augur), LEND (AAVE), REN (Ren Protocol), UMA (UMA), LRC (Loopring), BNT (Bancor) For sCEX; The current proposed V2 Index comprises of BNB (Binance), CRO (Crypto.com), OKB (OKex), LEO (Bitfinex), HT (Huobi), FTT (FTX), KCS (Kucoin)

Test Cases

s/iDeFi and s/iCEX already exists and are a clear example of how custom Synth indices can function successfully in the Synthetix protocol

Implementation

Announce the new index and weightages and migrate after a minimum 2 week period. Done by normalising the new price to the old price and restart the index contract.

Here are the weightings for the s/iDEFI Synths: 1.06 of COMP (Compound), 0.31 of MKR (Maker), 63.23 of KNC (Kyber Network), 243.77 of ZRX (0x), 37.70 of SNX (Synthetix), 437.08 of LEND (AAVE), 3.83 of REP (Augur), 305.36 of REN (REN), 415.03 of LRC (Loopring), 18.14 of UMA (UMA), 23.00 of BNT (Bancor), 2.17 of BAL (Balancer).

Here are the weightings for the s/iCEX Synths: 17.36 of BNB (Binance), 1804.01 of CRO (Crypto.com), 33.67 of OKB (OKex), 107.35 of LEO (Bitfinex), 28.35 of HT (Huobi), 11.98 of FTX (FTX), 9.82 of KCS (Kucoin).

Copyright and related rights waived via CC0.