This SIP proposes to implement a direct integration contract that allows integrators to tap into Synthetix's exchange functionalities with a customized set parameters.
\nThe direct integration contract allows the Synthetix protocol to create a unique environment for integrators, allowing access to Synthetix's exchange functionalities with custom parameters that fit individual use cases. Although this sip is built on top of v2x, it fits in the spirit of what we should expect with Synthetix v3, where different markets can be created and tailored for specific offerings and use cases.
\nThere are a number of benefits to the Synthetix protocol from having a direct integration path with partners:
\nBoth these protocols have a significantly reduced chance of latency attacks, due to their protocol's incorporation of slippage constraining toxic flow to a certain extent. Providing these special DirectIntegrationManager routes into Synthetix's exchange functionalities isolates the trade flow to a certain extent and allows us to offer more competitive offerings via lower fees.
The workflow of adding a directing integration external contract (or EOA) to interact with Synthetix exchange functions is as follows:
\nDirectIntegrationManager contract with the specified parameter overrides.Alternatively, the SC can designate an EOA which can directly interact with synthetix at the over-ridden parameters, this still requires the normal SIP governance submission and approval. Obviously, there are more risks to the protocol involved when undertaking this expedited approach.
The DirectIntegrationManager contract allows the Spartan Council to approve an address (contract or EOA), to interact with the Synthetix's core exchange functionalities at specified parameters. If parameters specified under setExchangeParameters are set to 0 or the 0x address, then the default parameters configuration would be used. Below are the functionalities configurable within the DirectIntegrationManager contract:
setExchangeParameters allows the protocol to specify the parameters of the exchange functionalities that go through the DirectIntegrationManager contract. It takes in the following structure:
msg.sender which is allowed to interact with synthetix contracts with specialized parametersdexPriceAggregatoratomicEquivalentForDexPricingatomicExchangeFeeRateatomicTwapWindowatomicMaxVolumePerBlockatomicVolatilityConsiderationWindowatomicVolatilityUpdateThresholdexchangeFeeRateexchangeMaxDynamicFeeexchangeDynamicFeeRoundsexchangeDynamicFeeThresholdexchangeDynamicFeeWeightDecayFew things worth noting:
\nsourceCurrencyKey of a trade, for example setting atomicMaxVolumePerBlock to 10m$ on sUSD and 20m$ on sETH and someone does a trade from sUSD to sETH, then the maxVolumePerBlock applicable on this trade would be that of sUSD.effectiveAtomicValueAndRates, getAmountForAtomicExchange and getAmountsForExchange behave based on the address calling them. Hence the returned values reflect the environment assigned to an integration address.This function return the set of settings configured for a given address and currencyKey combination. If an address / currencyKey combination is not configured with any overrides, this would just return the global parameters from system settings. Any overrides would be applied if applicable.\nBelow is what can be expected when getExchangeParameters is called with the 0x address and sUSD as the integration currencyKey:
{'currencyKey': 'sUSD',\n 'dexPriceAggregator': '0xf120F029Ac143633d1942e48aE2Dfa2036C5786c',\n 'atomicEquivalentForDexPricing': '0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48',\n 'atomicExchangeFeeRate': 0,\n 'atomicTwapWindow': 1800,\n 'atomicMaxVolumePerBlock': 100000000000000000000000,\n 'atomicVolatilityConsiderationWindow': 0,\n 'atomicVolatilityUpdateThreshold': 0,\n 'exchangeFeeRate': 0,\n 'exchangeMaxDynamicFee': 50000000000000000,\n 'exchangeDynamicFeeRounds': 0,\n 'exchangeDynamicFeeThreshold': 4000000000000000,\n 'exchangeDynamicFeeWeightDecay': 900000000000000000}\nThe SystemStatus would include resumeDirectIntegration and suspendDirectIntegration functions, that take in the external contract address and allows pdao to suspend and resume interaction with external contracts.
In future SIP's, such as SIP-272, the direct integration universe would need to be updated as to incorporate new parameters and functions configured into synthetix's systems.
\nmaxAtomicVolumePerBlock to 2000$ per block on sUSD and 1000$ on sETH while the standard parameters being 100$\nsetExchangeDynamicFeeRounds to 0\nSetting the DI dynamic fee parameters as follows
\na) setExchangeDynamicFeeWeightDecay to 0.8
b) setExchangeDynamicFeeThreshold to 0.1%
c) setExchangeDynamicFeeRounds to 5
d) setExchangeMaxDynamicFee to 10%
e) update the ETH price print to 1200$ / 1220$ / 1250$ / 1240$ / 1230$
\nWhile the standard non DI setExchangeDynamicFeeRounds is 0.
Setting the standard dynamic fee parameters as follows
\na) setExchangeDynamicFeeWeightDecay to 0.5
b) setExchangeDynamicFeeThreshold to 0.2%
c) setExchangeDynamicFeeRounds to 4
d) setExchangeMaxDynamicFee to 10%
e) update the ETH price print to 1200$ / 1220$ / 1250$ / 1240$ / 1230$
\nWhile the DI setExchangeDynamicFeeRounds is 1.
atomicVolatilityUpdateThreshold of 10 updates on sETH and atomicConsiderationWindow being set to 60 seconds. The standard parameters being 15 updates and 60 seconds.\n✅ Then the non-DI account transaction succeeds
\n❌ Then the DI account transaction reverts
\nBelow is a list of values configurable:
\nsetExchangeParameters: This will allow the protocol to configure integrations, requires a SIP presentation.suspendDirectIntegration and resumeDirectIntegration can be called by pDAO to cease and resume interaction on the DirectIntegrationManager contract. Note that suspendDirectIntegration can be called by pdao in case of emergencies, but resumeDirectIntegration requires a SCCP.Copyright and related rights waived via CC0.
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