Proposal to List sUSD on Optimistic Ethereum

Summary
This proposal is to list Synthetix’s Synth USD, allowing users to lend and borrow sUSD.

Background
As dForce has landed on Optimism. This is a good opportunity for Synthetix to expands its user case by allowing people to borrow and lend sUSD. Lending and borrowing is the fundamental use case of money. Especially for Synth USD, as it can be the gateway to access synth trading on Kwenta, Hedging and trading options on Lyra Finance and upcoming Thales Binary Option and dHedge decentralized fund.

Proposal
List sUSD with the following parameter:

Ur Kink Base Slope 1 Slope 2
90% 0 5% 60%

Remark

  • Currently L1 sUSD and L2 sUSD isn’t connected to each other.
  • What is L2 synth collateral?
  • Current risk in L2 sUSD
    • Collateral Risk from SNX price movement, ETH and LUSD.
    • Oracle Risk from Chainlink for SNX and LUSD.
    • Upgradable Proxy Risk from Synthetix itself.
4 Likes

I support this proposal.

2 Likes

How to get the price of this token?

sUSD is pretty big play for Synthetix, supporting it to be able to be supplied and borrowed make sense(but not as collateral). However, my only concern is the oracle, sUSD don’t have Chainklink oracle support on Optimism, while dForce uses Chainlink oracles

2 Likes

sUSD is always equal to 1 USD within the Synthetix ecosystem (eg. 1 sETH can always be exchanged for sUSD at the chainlink oracle price). It is up to arbitragers to keep the sUSD/DAI and sUSD/ETH pegs

1 Like

Synthetix also uses Chainlink oracles!

Internally, It is accounted as $1 as in you can trade sUSD into other synth at same rate as the market. But externally it can be a problem as it can goes break the peg from the demand e.g. past Lyra sUSD/DAI LP incentive.

3 Likes

Great proposal I support this

1 Like

It is always $1 internally, externally it is only on Uniswap V3.

1 Like

i understand it’s $1 within Synthetix, but you still need external oracle for lending protocol to function, i just checked Chainlink, they only provided feeds for sUSD on Ethereum mainnet

3 Likes

agreed that need valid oracle and also how deep is the sUSD liquidity in Uni on OP? couldn’t find much info on Uniswap, looks like the info is down. Given L1 and L2 are not connected, probably need sufficient liquidity on OP for sUSD, otherwise, liquidation could be an issue.

1 Like

And how about the liquidity? Is there a pair contains it at a DEX on the Optimism?

Uniswap Subgraph and Analytics is down so I can’t grab the price.
image

Let me get back to you later. I’m pinging SNX CC for oracle feasibility.

sUSD $1.02 - Synth sUSD / DAI on Optimism / Uniswap - DEX Screener

Yes please

1 Like