Overview

STP-18 “Solana Perps Working Group'' and STP-17 “SUI Perps Working Group” have both been passed. Working groups will now be established to facilitate the introduction of Synthetix Perpetual Contracts to both the Solana and Sui blockchains.

Below is an outline of both proposals;

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STP-18 Executive Summary

This proposal outlines a plan to allocate funding for a team tasked with developing, deploying, and managing a Synthetix Perpetual Contracts instance on the Solana blockchain.

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Abstract

The proposal suggests creating a specific vault and market factory contract infrastructure to replicate Synthetix Perps functionality, thereby extending the Synthetix Protocol's applicability to a broader range of blockchains. The objective is to engineer a unique vault and market factory contract framework for deploying Synthetix Perps on Solana.

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Motivation

Broadening the user base and community engagement with Synthetix facilitates the protocol's reach and scalability. The strategic direction previously concentrated on synchronising the Synthetix Protocol across several EVM-compatible chains. The strategy has evolved to prioritise the development of distinct protocol instances, thereby enabling the deployment of Synthetix V3 on any EVM-compatible blockchain and the adaptation of Synthetix's principal offering, perpetual contracts, for other blockchains, thereby integrating these into the Synthetix ecosystem. Solana, characterised by its engaged community and relatively untapped perpetual contracts market, is identified as a suitable platform for Synthetix's expansion efforts.

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Specification

Proposed is the allocation of 430,000 SNX and 400,000 USDC to fund the development, launch and management of Synthetix Perps on Solana for a 12-month period. Tasks for the designated working group include:

• Tailoring Synthetix Perps v3 smart contracts for the Solana Virtual Machine (SVM).
• Facilitating the development and maintenance of a user interface.
• Generating and presenting governance proposals for its deployment.
• Committing to continuous maintenance and upgrades to ensure competitive advantage.
• Instituting governance frameworks to enable oversight of the deployment by Synthetix governance.

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Rationale

Solana presents a significant opportunity for Synthetix expansion, given its strong non-EVM community, high visibility and underexplored market for perpetual contracts. As of the current assessment, Solana's stablecoin Total Value Locked stands at $2.75 billion, with an overall TVL of $10.7 billion, indicating a conducive environment for Synthetix's growth initiatives.

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STP-17 Executive Summary

This proposal recommends funding a team to finalise, launch, and manage a Synthetix Perpetual Contracts on Sui.

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Abstract

The proposal outlines an approach to adapt the Synthetix Perps model for broad application across multiple chains, specifically focusing on the development of a vault and market factory contract framework for Synthetix Perps on Sui using the Move programming language. The initiative leverages a year of progress in architecture development, prototyping and testing, leading to an almost complete Synthetix protocol instance in Move tailored for Sui's Layer 1 or Movement Layer 2.

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Motivation

The aim is to broaden the Synthetix network, enhancing its reach and capacity by introducing its services to new users and communities. The strategic focus has shifted from maintaining uniform Synthetix Protocol instances across EVM-compatible chains to creating independent versions of the protocol. This adjustment facilitates the launch of Synthetix V3 on any EVM-compatible chains and allows for the development of Synthetix's primary offering, perpetual contracts, on other blockchain systems, thereby incorporating these into the Synthetix ecosystem.

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Specification

The proposal includes allocating 290,000 SNX to support the completion, deployment, and operational management of Synthetix Perps on Sui over twelve months. Key responsibilities for the working group are as follows:

• Adapting Synthetix Perps v3 smart contracts for compatibility with Move.
• Supervising the development and support of the user interface.
• Crafting and presenting governance proposals for deployment.
• Committing to continuous maintenance and upgrades to ensure competitiveness.
• Implementing governance frameworks to allow Synthetix governance oversight of the deployment.

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Rationale

Sui, with its Move language foundation, is identified as a viable platform for the future growth of perpetual contracts trading, thanks to its superior developer experience tooling and streamlined user onboarding processes. Currently, Sui maintains a stablecoin Total Value Locked of $250 million and a total TVL of $686 million, providing a solid base for the expansion of Synthetix's perpetual contracts trading.

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Disclaimer: This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.

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