Synthetix V3 Documentation Released

Quick Take

• Core developers consider three EIPs for inclusion in Dencun.
• Synthetix releases documentation for Synthetix V3.
• Uniswap V3 TWAP Oracle risk portal.
• MakerDAO proposal to increase DSR to 3.33%.

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Optimism Highlights 🔴✨

Synthetix V3 Documentation Released
Synthetix released its documentation for Synthetix V3, a new iteration of the protocol that aims to serve as a derivatives liquidity layer. In February, Synthetix deployed an alpha mainnet version of Synthetix V3 on Ethereum and Optimism. Currently, V3 supports the creation of CDPs and an sETH spot market implementation. Synthetix will release additional functionality over time, including perps and support for multi-collateral assets. Synthetix also plans to integrate Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to enable cross-chain stablecoin transfers. Synthetix V3 is open-source and can be deployed on any EVM-compatible chain.

Proposal For DAI Savings Rate Increase To 3.33%

The MakerDAO Risk Core Unit Team proposed parameter changes to several Maker vaults, including an increase in the DAI Savings Rate (DSR) to 3.33%. If approved, the change will impact rates across DeFi, including an increased DAI borrow rate on Maker's own Spark Protocol. The DSR was last increased to 1% in December 2022. The DSR offers users the opportunity to earn yield by depositing DAI into a savings contract. The yield paid to users comes from the protocol’s stability fee on Collateral Debt Positions. This rate adjustment aims to align with interest rates on U.S. treasury bonds and will be put into an executive vote by Maker governance.

Changes To EIPs Considered For Inclusion In Dencun

During this week’s ACD call, core developers considered EIP-5656, EIP-5920, and EIP-7069 for inclusion in the Dencun upgrade. EIP-5656 proposes a new memory copying instruction. EIP-5920 introduces a new “PAY” opcode. And EIP-7069 adds CALL2, DELEGATECALL2, and STATICCALL2 call instructions. Simple serialization (SSZ) scheme-related EIPs 6475 and 6493 were also removed from the EIP inclusion list. The EIPs are no longer needed since developers will be using an RLP serialization scheme instead. So far, three EIPs have been formally confirmed for Dencun, including transient storage EIP-1153, proto-danksharding EIP-4844, and SELFDESTRUCT removal EIP-6780.

Uniswap V3 TWAP Oracle Risk Portal

Security firm Chaos Labs launched a portal for tracking the cost of Time Weighted Average Price (TWAP) Oracle manipulation attacks across Uniswap V3 pools. TWAP Oracle attacks happen when an attacker manipulates low-liquidity assets to artificially inflate the price of their collateral. This allows an attacker to secure a significantly undercollateralized loan on protocols using the Oracle. The risk portal displays the cost of exhausting liquidity for a specific asset in a V3 pool. According to data from the tool, it would currently take $38 million to manipulate the price of WETH by 10% in the WETH/IUSDC Uniswap pool. The risk portal supports data for V3 pools on Ethereum, Optimism, and Polygon.

Tornado Cash Passes Proposal 21

A governance proposal initiated by the Tornado Cash attacker was passed. The attacker, who currently controls the DAO, can still make changes to the proposal over the next couple of days. The proposal seeks to restore control of the Tornado Cash DAO to token holders. Last week, an attacker tricked Tornado governance into approving a malicious proposal, which the attacker exploited to gain full control of the DAO.