SIP-348: Enable USDC for Andromeda on Base

Simple Summary

Configure the Andromeda Base V3 deployment to accept USDC collateral, and enable ETH and BTC markets on Perps V3.

Abstract

This SIP proposes to configure the Andromeda Base V3 deployment such that it accepts USDC collateral. Additionally, ETH and BTC markets will be enabled on Perps V3. Focussing on USDC collateral limits the complexity of the deployment, reduces risk and increases alignment with the Base network.

Motivation

Configuring Andromeda on Base to accept USDC for LPing and perp margin opens up Synthetix to a new set of users. The initial configuration should be conservative and leave room to expand as usage increases.

Specification

Overview

This SIP will define the Andromeda Base V3 deployment settings to accept USDC as collateral for LPing, and margin for trading Perps. It will also activate ETH and BTC markets on Perps V3 with conservative configurations. A USDC Spot Market and Wrapper will be implemented so that both LPs and perp traders only have to think about USDC. This configuration aims to treat USDC as a constant valued at $1. The spot market wrapper will be used to produce the 1:1 redeemable synth sUSDC for LPing, and swapping to sUSD for perp margin.

Rationale

The introduction of USDC as collateral, with a constant value, provides an opportunity to test the market's appetite in a controlled manner before adding more complex assets like ETH. By using a spot market wrapper, a 1:1 redeemable synth, sUSDC, will facilitate Perps trading. The initial limitation to $1m of LP collateral, and the disabling of minting is a conscious decision to enhance the liquidity available to the Perps Market.

Technical Specification

Configure the Base deployment Require Markets to have 125% collateralization, and require at least 1 days before being able to withdraw collateral

• minimum_liquidity_ratio = 125%
• account_timeout_withdraw = 1 day

Enable USDC as collateral, at a fixed price of $1, and maximum of $5m

• usdc_address = 0x833589fCD6eDb6E08f4c7C32D4f71b54bdA02913
• registerNode = CONSTANT NODE, 1
• synthUsdcMaxMarketCollateral = 5000000

Disable minting, and set liquidation at 110%

• issuanceRatioD18 = MaxUint256
• liquidationRatioD18 = 1.10

Configure ETH and BTC Perps Markets:

Variable	ETH Market	BTC Market
PerpsMarketId	100	200
SkewScale	1000000	1000000
MaxFundingVelocity	9	9
MakerFeeRatio	0.0002	0.0007
TakerFeeRatio	0.0005	0.0003
MaxMarketSize	525 (~$1m)	30 (~$1m)
InitialMarginRatio	1	1
MaintenanceMarginScalar	0.5	0.5
MinimumInitialMarginRatio	0.02	0.02
LiquidationRewardRatioD18	0.01	0.01
MaxLiquidationLimitAccumulationMultiplier	1	0.5
MaxSecondsInLiquidationWindow	30	30
MinimumPositionMargin	0	0
LockedOiRatio	0.5	0.5
SynthMaxCollateralAmount	<%= MaxUint256 %>	<%= MaxUint256 %>
MaxLiquidationPd	0.0016	0.0016

Test Cases

Test cases will be provided with the implementation to ensure that the Andromeda Base V3 deployment correctly accepts USDC and that ETH and BTC markets operate as expected on Perps V3.

Configurable Values (Via SCCP)

All variables of the deployed V3 system.

Copyright

Copyright and related rights waived via CC0.