DeFi

Simplifying SNX Staking with Debt and Escrow Migration to Optimism

DailyBlockchain.News AdminJanuary 30, 2024

1 minute read

Simplifying Snx Staking With Debt And Escrow Migration To Optimism

Synthetix has carried out SIP-237, an improve that can simplify the staking expertise by permitting customers to migrate their staked SNX and sUSD debt to Optimism with out burning present sUSD debt.

Simplified Migration from Ethereum to Optimism

Earlier than the implementation of SIP 237, migrating staked SNX from Ethereum to Optimism required customers to burn their present debt, a course of that hamstrung customers who had already deployed sUSD into hedging and farming methods. Nevertheless, with the brand new system launched by SIP 237, stakers can migrate their debt place and escrowed SNX from Ethereum to Optimism.

The Mechanism: How Does It Work?

The core of this migration lies within the utilization of debt shares, launched in SIP-185. This mechanism ensures that when stakers migrate, their vested SNX and debt shares are transferred from Ethereum Mainnet to Optimism. This switch consists of:

Debt Shares (SDS): All debt shares are moved from L1 to L2.
Unstaked Stability (SNX): Full SNX steadiness is migrated.
Escrowed SNX: Revoked on L1 and recreated on L2.

Advantages of the Migration

No Want to Burn Debt: Stakers can migrate with out the effort of unwinding and burning their debt.
Unified Charges: Publish-migration, customers obtain the identical price distribution no matter the place they stake.
Gasoline Price Financial savings: Being on Optimism affords vital financial savings on fuel prices.
Automation Prospects: Due to the low fuel price setting and integrations with Gelato, customers can robotically mint primarily based on their user-selected parameters.