SIP-384: Launch Synthetix Chain (SNX Chain) Using the OP Stack for V3 Governance

Author	Jackson Chan, MEB, Matt
Status	Implemented
Type	Governance
Network	Optimism
Implementor	meb (@barrasso), moss (@moss-eth)
Release	TBD
Proposal	Loading status...
Created	2024-04-28

Simple Summary

Deploy Synthetix Chain, an app chain built on the OP Stack, to act as the primary home of Synthetix V3 Governance.

Abstract

The scope of this SIP is limited to the deployment of the network itself and the new V3 election system upgrade (SIP-360).

The plan is to leverage Synthetix Chain as the mothership of Synthetix governance and have it operate independently alongside the existing deployments. The new governance module will facilitate the elections using cross-chain messaging to sync votes, results, and council NFTs across all networks.

Motivation

The current elections system for Synthetix V2X is limited to Optimism Mainnet, causing inefficiencies in governing deployments across multiple networks. This SIP proposes deploying Synthetix Chain as a solution to this issue. The primary goal of Synthetix Chain is to create a neutral platform for streamlined governance. It will manage Synthetix deployments across both EVM and non-EVM networks, addressing the current limitations of the election system. While not part of this SIP, future plans for Synthetix Chain include becoming the main hub for SNX staking and fee collection. It can host deployments of Synthetix V3, Perps, and Orderbook Perps. Additionally, Synthetix Chain is expected to integrate with the Optimism Superchain for the benefits of interoperability (crosschain liquidity & trading).

Refer to “Future Plans” for additional information.

Specification

Architecture

Key components include:

Execution Layer: Optimism's Superchain stack.
Data Availability: ETH DA, Optimism’s span batching, and EIP-4844.
Oracle: Multi-provider (Oracle-agnostic, configurable).
Cross Chain: Wormhole Messaging & Queries.
Chain ID: 2192 ;)

Synthetix Chain will be deployed as a "vanilla OP Chain" using Ethereum L1 for both settlement and data availability. The deployment will follow the architecture outlined in the OP Stack documentation.

Additionally, relying on Ethereum for Settlement and DA will maximize the decentralization of the chain & ensure compliance with the Optimism Superchain Standards to enable interoperability in the future.

Governance and Operations

Synthetix will host the new governance implementation and the initial deployment will only include governance-related operations. For this initial SIP we propose to use Conduit to deploy Synthetix Chain and manage its infrastructure.

Any future upgrades and deployments of other components will require separate SIPs.

Election Start Date

To align with Wormhole's cross-chain release guidance, we propose the following election schedule:

Nominations Start: Fri Aug 30 22:54:58 2024 UTC
Voting Start: Thu Sep 05 22:37:06 2024 UTC
New Epoch Start: Sun Sep 15 22:37:06 2024 UTC

Future elections will follow the above schedule, with epochs remaining at 4 months.

Test Cases

Scenario 1: Successful deployment and operation of governance contracts on Synthetix Chain.
Scenario 2: Successful cross-chain interaction between Synthetix Chain and existing Synthetix deployments.
Scenario 3: Cost analysis and performance metrics post-EIP-4844 vs third parties.

Future Plans for Synthetix Chain (Out of Scope for Current SIP)

While Synthetix Chain is initially focused on governance, it has the potential for broader applications. The following are planned future developments, not included in the current proposal. Any future upgrades and deployments of other components will require separate SIPs:

Cross-chain SNX Staking and Fee Collection Replace Optimism as the primary hub for SNX staking Centralize fee collection from multiple EVM & non EVM chains.
Multi-chain Liquidity Sharing Pool SNX liquidity on opSNXchain Support trading and liquidity sharing across multiple chains
Optimism Superchain Integration Implement cross-chain trading support across Optimism Superchain Enable traders to operate from any supported chain Make opSNXchain the central hub for yield generated across the Synthetix ecosystem