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UPDATE AS OF AUG 26TH - Synthetix will be requesting an 8 week extension, to be posted to vote on Snapshot on Thursday Aug 29th (vote ending Sep 5th).

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Initial Context

Synthetix has experienced unforeseen delays in its deployment of Synthetix Perps on Arbitrum. We originally expected to launch by late July, to align with one month of Perps fee rebates. However, due to audits and other factors, and to ensure the top performance of our Arbitrum-exclusive multi-collateral perps feature, we've been unable to hit these targets. As a result, we've not utilized 900k ARB from our proposal and would like to seek an extension.

We have been seeking the best process to handle this for the last two weeks, reaching out to Matt from StableLabs and requesting information on whether the council can make this decision. We have only just been informed (within the last day or two) that going directly to the DAO is our option.

Now, we are soliciting feedback from delegates and providing information so we can move forward.

Original Direct to DAO Proposal: https://forum.arbitrum.foundation/t/synthetix-ltipp-application-final/22023/14?u=mattl

Reasons for Delay

1. Audit Schedules: Our security audits have taken longer than initially anticipated. While this has caused a delay, it’s cruicial to ensuring the safety of user funds, and we would not rush this just to hit grant targets.
2. Integrator Readiness: Some of our frontend integrators need additional time to properly implement our new features. Without our integrators, we will not be able to facilitate trading Synthetix Perps on Arbitrum, as Synthetix does not operate trading frontends.
3. Multi-Collateral Perps Development: We've been working hard on a game-changing feature exclusive to Arbitrum - Multi-Collateral Perpetual Futures.
   1. This innovation will allow users to margin with ETH, BTC, and USDx, opening doors to new trading strategies, most notably basis trades. These enhancements are expected to significantly increase user engagement and trading volume while maintaining capital efficiency. However, the complexity of this feature has contributed to our timeline extension.

Synthetix Arbitrum Request Summary

Option 1: 2-Month Extension (Preferred)

• Duration: 2 months
• Start Date: September 3rd, 2024 (We hope to start earlier, say Aug 23rd onwards, but this depends on governance approval of our plan)
• Total Unused Perps Trading Rebate Allocation: 900,000 ARB tokens
• Purpose: Align trading fee rebates with the launch of Multi-Collateral Perps & use them over a sustainable 8 week timeline.
• Benefits:
  • Full implementation of Multi-Collateral Perps feature, margin Perps with BTC & ETH in addition to USDx
  • Complete integration with frontend partners
  • Maximized impact of ARB token allocation to align with utilized LP & Stablecoin (USDx) incentives

Option 2: 5 Week Extension (Alternative)

• Duration: 5 weeks
• Start Date: September 3rd, 2024
• Total Allocation: 900,000 ARB tokens