SIP-132: Add Volume Program to the Synthetix Protocol

SIP-132: Add Volume Program to the Synthetix Protocol
Author: @AndrewT
Created: 2021-04-19

Simple Summary

I propose that the Volume Program, an initiative manually operated by the Core Contributors that rewards projects generating Synth trading volume for the Synthetix Protocol, be taken out of its trial period and added into the protocol as a long-term feature.

Abstract

If implemented, the Volume Program would be built into Synthetix smart contracts, enabling members to track and claim their rewards through contract calls.

Motivation

By building the Volume Program directly into the Synthetix protocol, Synthetix will formalize the Volume Program into a permanent feature thereby optimizing the experience for Volume Program members, reducing the risk of human error, and further decentralizing an important component of the Synthetix Protocol.

Context

The Synthetix Volume Program is an initiative designed to incentivize native integration of the Synthetix protocol across DeFi platforms and protocols by providing a new revenue stream for these projects. This program offers a fee rebate to approved integrators who implement Synth-to-Synth swaps natively and generate protocol exchange volume through their interfaces. The program launched Midnight UTC on the 1st September 2020 and has been steadily growing since.

The Volume Program is currently paid for the SynthetixDAO but, if formalized into a protocol-level feature, the program would be paid for directly from the fees they generate. Volume Program members receive a 25% rebate from the fees on swaps they facilitate, which is to be paid out in sUSD, the remaining 75% of the fee goes to stakers. During the trial period, an application was necessary to receive a referral code, however once built into the protocol, the Volume Program would be openly accessible for any project capable of producing Synth trading volume.

Although several projects are integrated with Volume Program, there are currently four projects that routinely receive Monthly rewards:

  • Curve
  • dHEDGE
  • 1inch
  • Enzyme

At the time of writing this SIP, Volume Program members have brought in 1,010,562,888 USD in volume for the protocol.

Technical Specification

TBD

Copyright

Copyright and related rights waived via CC0.