Scaling Andromeda

3 months ago 101

The travel to Andromeda is marked by progressive ramp-up periods. Andromeda is live, actively onboarding traders, developers, and integrators with debased unfastened involvement and liquidity supplier caps. Over time, OI/LP caps volition beryllium accrued and perps markets volition beryllium released alongside caller features.

Introduction

The Andromeda Release is simply a strategical deployment encompassing Core V3 and Perps V3 connected Base; this determination volition presumption Synthetix arsenic a multi-chain protocol, leveraging the Optimism Superchain’s capabilities. With the deployment of Perps V3 to Base, Synthetix reinforces its presumption arsenic a person and innovator successful the decentralized Perps space.

The travel to Andromeda is marked by progressive ramp-up periods. Andromeda is presently live, actively onboarding traders, developers, and integrators with debased unfastened involvement and liquidity supplier caps. Over time, LP and OI caps volition beryllium increased, and Perps V2 users volition beryllium transitioned to Perps V3, coinciding with the ramp-up of OI/LP Caps and enactment of existing perps markets.

The Spartan Council's Role successful Andromeda's Ramp-up

The Spartan Council, Synthetix's governing body, volition oversee the Andromeda ramp-up. Their decisions volition signifier the progression of this deployment connected an ongoing basis. The beneath ramp-up stages are a unsmooth program based connected discussions by the Spartan Council and Core Contributors, taxable to alteration arsenic improvement and governance proceed to instrumentality signifier connected the topic.

Ramp-Up Stages

Initial Caps and Testing: The Synthetix Treasuary Council has initially seeded liquidity to guarantee that unfastened involvement is supported by liquidity providers.
Build up Trader/Arbitrage Base: Run by marketplace participants seeking to arbitrage. Automated trading bots volition enactment to neutralize skew, akin to Perps V2. Once this is available, LP positions volition beryllium delta-neutral.
Scaling LP and Expanding Trading Pairs: Once LP caps scope a satisfactory level, users volition beryllium guided to prosecute with LP dapps and trading integrators.
Perps v3.1 release - Interest complaint (or asymmetric funding) SIP-354. Perps V3 implements locking of LP collateral to guarantee that unfastened positions are backed by the underlying collateral. To discourage the full utilization of LP collateral, the instauration of asymmetric backing acts arsenic an inducement for further LPs to participate the marketplace portion besides encouraging the closing of positions to liberate LP collateral successful a timely manner.
Increased Caps & Additional Market Pairs: Once integrations for trading spouse integrators and arbitrage bots are complete, caps volition beryllium raised by astir an bid of magnitude higher. This summation volition accommodate much liquidity providers and unfastened interest, enabling the instauration of further markets.
Multi-Collateral Margin Support: Additional perp borderline collateral types tin beryllium accepted, including spot synths, sETH, sBTC, etc, output bearing stablecoins & staked ETH tokens.

The Essence of Andromeda

The Andromeda Release volition present respective caller cardinal features, and benefits for some traders and liquidity providers. This isolated deployment connected Base facilitates unsocial investigating opportunities and nonstop comparisons with the existing Optimism Perps V2 deployment.

Key Features

Multi-Collateral Support: Including USDC, and different approved synths successful the aboriginal (sETH, sBTC, etc)
Improved Liquidation and Settlement Processes: Protecting LPs and traders with MEV-resistant trading and liquidation experience.
Isolated Deployment: Allowing for a distinctive investigating situation connected a caller chain.
SNX Buyback and Burn: Implementing a interest organisation exemplary to SNX holders. 40% of fees generated volition beryllium utilized to bargain backmost SNX and burn.

For Liquidity Providers and Traders

Liquidity Providers: The instauration of USDC arsenic collateral offers caller avenues for liquidity proviso and interest generation. This usage is overmuch much superior efficient, arsenic the collateralization ratio tin beryllium acceptable overmuch little than with SNX successful the past.
- Example C-Ratio: SNX C-Ratio is acceptable astatine 500% vs. USDC's 120% C-Ratio.
Traders: Enhanced trading acquisition with cross-margin and multi-collateral options alongside a user-friendly onboarding process from integrator partners.