SIP-407: List GMCI Index Oracles on Synthetix Perps V3 (Arbitrum)

Simple Summary

List GMCI Index Oracle products, including their Top 30, L2, and Meme indices, on Synthetix Perps V3 on Arbitrum.

Abstract

This proposal seeks to list three GMCI Index Oracle products on Synthetix Perps V3 on Arbitrum: the GMCI Top 30 Index, GMCI L2 Index, and GMCI Meme Index.

These new markets will have low initial open interest limits to test their viability and manage risk.

Motivation

Adding GMCI Index Oracle products to Synthetix Perps V3 will provide traders with exposure to broader market segments through carefully constructed indices. This expansion of available markets aligns with Synthetix's goal of offering diverse trading opportunities, specifically targetted at DeFi traders on Arbitrum.

Specification

Overview

We propose listing the following GMCI Index Oracle products on Synthetix Perps V3 on Arbitrum:

1. GMCI Top 30 Index: Represents a selection of the top 30 cryptocurrencies by market capitalization. Link: https://www.gmci.co/indices/gmci-30
2. GMCI L2 Index: Tracks the performance of leading Layer 2 blockchain projects. Link: https://www.gmci.co/indices/gmci-l2
3. GMCI Meme Index: Focuses on popular meme-inspired cryptocurrencies. Link: https://www.gmci.co/indices/gmci-meme

Each market will have a low initial open interest limit to manage risk during the experimental phase. This will be set in a subsequent SCCP.

Technical Specification

The implementation will follow standard procedures for listing new markets on Synthetix Perps V3. All three indices are already supported by Pyth Network

Risk Management

To mitigate risks associated with these experimental markets:

1. Set a low total open interest limit of $500,000 for each index market.
2. Conduct regular reviews of market performance and adjust parameters as needed.

Indices can be shorted by shorting the perps available on WOO X (CEX) or Vertex (DEX). Perps on Bitget, Zeta and Bluefin will happen in the next few weeks.

GMCI indices are "passive" indices that follow strict rules regarding weightings. The indices are all rebalanced at the last Friday of the month, based on a circulating supply snapshot taken the week before. Index prices are provided 24/7 by at least 5 contributors, they are never switched off.

Please note that index prices are purely a result of the (weighted) pricing of the underlying constituents. Coin Metrics is our third-party calculation agent that acts as a price validator for stakeholders. GMCI is BMR compliant.

Test Cases

N/A

Configurable Values (Via SCCP)

The following values will be configurable via SCCP for each GMCI Index market:

• Maximum market value
• Liquidation fee
• Liquidation buffer ratio
• Maker/taker fees
• Skew scale
• Max funding velocity
• Max market value per liquidation

Initial values to be determined in a separate SCCP.

Copyright

Copyright and related rights waived via CC0.