This SIP proposes the creation of pools in Version 3 of the Synthetix protocol. Pools accept collateral in vaults, enable the creation of collateralized debt positions, and delegate credit to markets.
\nGovernance determines the types of collateral that can be deposited in the system. Accounts can delegate their staked collateral to pools by opening staking positions. Accounts can then mint and burn snxUSD, backed by their collateral. Optionally, the owner of a pool can delegate credit to markets and assume credit and debt generated by these markets.
\nBy introducing the concept of a pool, we are able to allow stakers to have custom exposure to specific markets' performance. This enables the benefits of a differentiated debt pool, as discussed in SIP-300)
\nThe implementation of pools involves logic for vaults of collateral, stablecoin issuance, and the delegation of credit and debt from markets.
\nPools create a clean abstraction for provisioning liquidity between vaults of collateral and markets. An alternative approach could involve a module for managing all collateral in the system, another module to manage minting and burning snxUSD, and then developing a system to that allows accounts to provide liquidity directly to markets. This is not desirable because it adds unnecessary components to the system and significantly increases the implementation complexity of features like delegated staking positions.
\nIt may seem as if we could allow pools to decide which types of collateral are acceptable, rather than configuring this across the entire protocol. This is not an option because we want to allow snxUSD to be fungible (regardless of the pool from which it was minted). In other words, we need to prevent the creation of a pool that accepts low quality collateral, exposing all snxUSD holders to that risk.
\nWe can develop this system in a series of modules:
\nCollateral Module\nThis module manages all collateral held in the protocol. With an account, users can depositCollateral() and withdrawCollateral() via this interface. The TVL of the protocol will consist of the value of all tokens held at the core proxy address. The SCCP-configurable values pertaining to accepted collateral types are also managed in this module. (See Configurable Values below.)
Vault Module\nvaults of each collateral type per pool\nEach pool Think of this like a CDP (MakerDAO, Liquity). Deposited collateral can be delegated to vaults, and then snxUSD can be minted against it, creating a staking position.
\nmint and burn
\ndelegateCollateral
\nPool Module\nUsers can create pools and configure settings relating to the markets they are backing (if any) using this module. Pools are created with the createPool() function, specifying an owner. Ownership can be transferred with the nominate/accept pattern or renounced. The pool owner can specify the following configuration for each market with the setPoolConfiguration() function:
The module also manages an SCCP-configurable Minimum Liquidity Ratio. If this ratio (taken with the proportion of delegated credit from the pool) results in a lower maximum debt than the calculation involving the maximum debt per dollar of collateral, it is used to determine the maximum debt instead. We envision this value being set at least has high as the most conservative target c-ratio.
\nThe maximum debt for a given market, aggregated across all pools backing it, is also the maximum amount of snxUSD that a market is able to withdraw.
\nPool Configuration Module\nThis manages a list of SCCP-configurable approved pools and a preferred pool.
\nRelevant tests will be developed during implementation.
\nFor each collateral type
\nToken (address) - An ERC-20 contract that represents the collateral.
\nPrice Feed (address) - A contract which provides the current value of this asset, denominated in USD.
\nIssuance Ratio (uint) - The lowest collateralization ratio that the protocol allows stakers to reach voluntarily with this collateral type (by minting snxUSD, for example).
\nDisabled (bool) - Whether the protocol should accept any more collateral of this type from stakers.
\nPreferred Pool (uint) - This is the ID of a pool which the Spartan Council prefers that stakers join. This will be the default pool for stakers in the official UI.
\nApproved Pools (uint[]) - This is a list of pools’ IDs owned (or otherwise approved) by the Spartan Council and will be listed in the official UI.
\nMinimum Liquidity Ratio - This is... (See Pool Module above.)
\nCopyright and related rights waived via CC0.
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