ETH Mainnet Legacy Spot Synth Migration

As outlined successful SIP-2059, Synthetix is deprecating the speech of non-USD spot synths connected Ethereum Mainnet (L1) and preparing to migrate users to the V3 system. This update requires enactment from users holding sETH, sBTC, oregon different spot synths too sUSD

As outlined successful SIP-2059, Synthetix is deprecating the speech of non-USD spot synths connected Ethereum Mainnet (L1) and preparing to migrate users to the V3 system. This update requires enactment from users holding sETH, sBTC, oregon different spot synths too sUSD. The migration volition assistance determination liquidity to V3 and negociate the V2X skew.

Key Points:

• Spot synth exchanges (and atomic swaps) are being deprecated connected the 15th of April connected Ethereum Mainnet.
• Spot Synth exchanges connected V2X Optimism volition not beryllium impacted.
• Users tin swap their sETH, sBTC, and different non-USD spot synths by the 15th of April.
• After the 15th of April, immoderate remaining non-usd spot synths tin lone beryllium redeemed via the L1 redeemer declaration astatine the Chainlink terms for sUSD.
• The Spartan Council signaled their volition to little the discount factor, which means users would person less sUSD than is predetermined by the Chainlink price. Users should exit earlier this mechanics is implemented. Further announcements volition beryllium made earlier this enactment is taken.
• Migrating liquidity to sUSD volition assistance present liquidity for sUSD and ramp up activities connected Synthetix V3.
• This alteration helps equilibrium the skew, arsenic V2X Spot Synths bash not people balance, dissimilar V3 Spot Synths, which enforce a terms interaction based connected the skew, akin to the plan of Synthetix Perps.
• As a effect of this change, skew is expected to go neutral and reduce/remove its existent vulnerability to ETH/BTC.

The existent spot synths make minimal fees for the protocol and make important hedging costs and indebtedness excavation imbalances for SNX stakers. In V3, spot synths similar sETH volition beryllium hedged by imposing terms interaction based connected the skew, akin to however Synthetix Perps incentivize traders to support delta neutrality. Deprecating the speech of these spot synths and past incentivizing users to swap retired these assets is captious to supporting the motorboat of caller products wrong Synthetix V3.

Users holding sUSD volition not beryllium diluted via a discount rate; users holding sUSD volition not request to bash anything. Also, users holding non-USD spot synths connected Optimism bash not person immoderate adjacent steps - lone users connected Ethereum Mainnet are impacted.

Next Steps for Users:

1. Check your wallet for immoderate sETH, sBTC, oregon different spot synth holdings (besides sUSD).
2. Visit 1inch, Curve, oregon Kwenta to swap retired synths to sUSD oregon non-synths earlier April 15th.
3. If you miss the deadline, you tin inactive redeem via the L1 redeemer contract, allowing you to swap non-USD synths to sUSD astatine the Chainlink terms connected April 15th.
4. To swap retired of sUSD, delight usage aggregators.
5. If you bash not swap retired by the archetypal deadline, the Spartan Council whitethorn statesman applying a discount complaint that dilutes the worth of your spot synths.

This timeline provides capable announcement portion moving the protocol guardant into Synthetix V3, which introduced a much optimized, sustainable exemplary of offering spot synths without maintaining the hedging risks that the V2 strategy suffered from.

Please scope retired connected Discord with immoderate questions.