SIP-271: System Wide Suspension - Proof Of Stake 🐼

Simple Summary

In preparation for the Ethereum merge event, expected to take place on 15-September, this SIP proposes to suspend all Synthetix contracts on both Ethereum and Optimism, when Total Terminal Difficulty (TTD) crosses 58740000000000000000000, around 3 hours prior to the expected merge block and resume activites after ensuring that Chainlink feeds and the rest of the protocol is in a stable state.

Abstract

The system would be suspended by running the following functions on both ethereum and optimism:

• suspendIssuance
• suspendExchange
• suspendFutures
• setPaused (CollateralManager)
• setPaused (ETH Wrapper)
• setPaused (LUSD Wrapper)

Motivation

In order to ensure the smooth transition to the new network, the system would be suspended in preparation of the merge block and resumed on the new chain afer ensuring that all aspects of the protocol and price oracles are in a steady state.

Specification

The following checks would be performed on a forked chain (with canon) before unsuspending the system:

• Minting and burning debt can take place normally, with the debt pool oracle in line with size of debt
• Both atomic and non-atomic exchange tests would be performed to ensure that the outputted amounts are reasonable
• Test on opening new loans with ETH and repaying that loan to release the ETH
• Test on opening futures positions, modifying that position and closing that position to release the margin
• ETH and LUSD can be wrapped and released

Due to protocol external dependencies, additional checks would be performed:

• All Chainlink oracles configured within Synthetix are pushing prices that are within a reasonable margin from centralized exchange prices or off-chain calculated expected prices
• LUSD price is close to 1$
• renBTC price is close to the price of wBTC

Once the Synthetix Network on PoS chain is unpaused, if the PoS chain, bears a chain id different from 1, then the PoW chain will be subsequently unpaused.

Test Cases

TBD

Configurable Values (Via SCCP)

N/A

Copyright

Copyright and related rights waived via CC0.