SIP-211: Asset Listing Methodology

Summary

A proposal outlining a structured mechanism to add new assets to the Synthetix suite of Synths.

Abstract

The Synthetix Risk Committee will be responsible for curating a list of assets that meet Synthetix’ Synth viability criteria as well as the number of assets Synthetix can support at any given time. In the event that the Synthetix Risk Committee determines that the Synthetix protocol can support additional assets, Synthetix stakers will then vote on which assets should be added as Synths from the Risk Committee’s curated list.

Motivation

Without a mechanism in place that continually optimizes the asset suite supported by Synthetix, the protocol is vulnerable to inefficiencies that could stunt potential growth. Currently, community members must write an SIP which the Spartan Council and Core Contributors then evaluate for feasibility, vote on, and, if passed, then work with Chainlink to implement. Although this process is functional, it requires a considerable amount of momentum behind a given SIP, otherwise, it can remain in a state of limbo. The current process also fails to consider assets demanded by individuals unfamiliar with the Synth listing process. With this proposal, Synthetix can continually maximize the potential of the Synth suite, removing the friction, biases, and inefficiency from the process.

Specification

The Risk Committee will evaluate and curate a list of assets to be added to the Synthetix protocol based on the Synth Viability criteria.

Synth Viability Criteria

Liquidity: The Risk Committee will evaluate whether a potential Synth has adequate liquidity to be safely supported by the protocol. Trading Volume: The Risk Committee will evaluate whether a potential Synth has enough trading volume to be safely supported by the protocol. Credibility: The Risk Committee will evaluate whether a potential Synth is available for exchange on an adequate amount of institutions that they deem reputable. Implementation: Price feeds must be available on Chainlink or Chainlink must be willing to add a price feed for a potential Synth.

Once a Synth has been added to the consideration set, it will be added to a voting interface where Synthetix stakers will be able to vote in Synths in the event the Risk Committee determines that more assets can safely be supported by the protocol. Slots for new assets to be supported by the protocol can be added by the Risk Committee via a SIP with the reasoning behind the new slots.

Once new slots are opened, Synthetix Stakers will have one week to signal their support for an asset. The amount of SNX a user has staked can be divided up amongst different assets. The assets with the most staked SNX assigned to them at the end of the week are added to the Synth suite.

The interface Synthetix Stakers will use to vote in new assets will be built by Core Contributors. The Synth voting interface would resemble the Tokereactor voting interface.

In the event that the Risk Committee determines a supported Synth no longer meets the Synth viability criteria, the Risk Committee can freeze a Synth by collaborating with the Spartan Council and Core Contributors.

This SIP is contingent on SIP-186 passing.

Copyright

Copyright and related rights waived via CC0.