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Simple Summary

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Improve capital efficiency of providing liquidity to Synthetix V3, by enabling native leverage within Vaults.

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Abstract

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Liquidity Providers are able to deposit a range of collateral types across Synthetix deployments, but are limited in the capital efficiency they can achieve. This proposal would enable a native levarage value, so that LPs could choose their desired level of rewards and risk.

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Motivation

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Synthetix is powerful in that it is able to accept a wide range of assets as collateral. The only current avenue for LPs to increase their leverage and capital efficiency, is to deposit and mint a stablecoin on Arbitrum (and soon Ethereum). The lack of native leverage limits the yield on desposited collateral, and the current withdraw timeouts make for convoluted looping.

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Specification

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TBC

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Rationale

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Offering increased capital efficiency will attract more liquidity.

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Technical Specification

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TBC

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Test Cases

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Test cases will be added to the code base before release.

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Configurable Values

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Rejected as abandoned by owner.

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Copyright

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Copyright and related rights waived via CC0.

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