{"componentChunkName":"component---src-pages-sips-sip-markdown-remark-frontmatter-sip-tsx","path":"/sips/sip-395/","result":{"data":{"markdownRemark":{"fileAbsolutePath":"/vercel/path0/content/sips/sip-395.md","frontmatter":{"sip":395,"sccp":null,"title":"P2P Settlement Strategy","network":"Optimism & Base","author":"fif, mr.mat","type":"Governance","proposal":null,"implementor":null,"release":null,"created":"2024-06-20T00:00:00.000Z","updated":null,"status":"Rejected"},"html":"<!--You can leave these HTML comments in your merged SIP and delete the visible duplicate text guides, they will not appear and may be helpful to refer to if you edit it again. This is the suggested template for new SIPs. Note that an SIP number will be assigned by an editor. When opening a pull request to submit your SIP, please use an abbreviated title in the filename, `sip-draft_title_abbrev.md`. The title should be 44 characters or less.-->\n<h2 id=\"simple-summary\" style=\"position:relative;\"><a href=\"#simple-summary\" aria-label=\"simple summary permalink\" class=\"anchor before\"><svg aria-hidden=\"true\" focusable=\"false\" height=\"16\" version=\"1.1\" viewBox=\"0 0 16 16\" width=\"16\"><path fill-rule=\"evenodd\" d=\"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"></path></svg></a>Simple Summary</h2>\n<!--\"If you can't explain it simply, you don't understand it well enough.\" Simply describe the outcome the proposed changes intends to achieve. This should be non-technical and accessible to a casual community member.-->\n<p>This SIP proposes the implementation of a P2P order settlement strategy for Synthetix perps markets which parse signed maker/taker messages pushed onchain by user-designated relayers.</p>\n<h2 id=\"motivation\" style=\"position:relative;\"><a href=\"#motivation\" aria-label=\"motivation permalink\" class=\"anchor before\"><svg aria-hidden=\"true\" focusable=\"false\" height=\"16\" version=\"1.1\" viewBox=\"0 0 16 16\" width=\"16\"><path fill-rule=\"evenodd\" d=\"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"></path></svg></a>Motivation</h2>\n<!--This is the problem statement. This is the *why* of the SIP. It should clearly explain *why* the current state of the protocol is inadequate.  It is critical that you explain *why* the change is needed, if the SIP proposes changing how something is calculated, you must address *why* the current calculation is inaccurate or wrong. This is not the place to describe how the SIP will address the issue!-->\n<p>Currently users can execute peer-to-pool trades priced via pull oracle, but this has some notable drawbacks including asynchronicity, limited flexibility, and gas intensiveness. Addition of a peer-to-peer matched order settlement strategy can significantly enhance the flexibility and extensibility of Synthetix market infrastructure for users and integrators:</p>\n<ul>\n<li>Extremely low-cost instant execution, with most of the transaction cost being L2 computation, which is relatively inexpensive. Matched trades can be relayed as soon as they are matched, bypassing asynchronous on-chain settlement through Synthetix contracts.</li>\n<li>Improved trust assumptions compared to similar systems, as operating a relayer can be a permissionless process with Synthetix’s role as a shared derivative settlement layer. This contrasts with existing systems where a single entity runs the only relayer.</li>\n<li>The order book/ambient liquidity hybrid model offers beneficial properties for users, combining CEX-grade order book performance with the reliability of on-chain ambient liquidity through Synthetix. This ensures prompt processing of liquidations with guaranteed liquidity.</li>\n</ul>\n<h2 id=\"rationale\" style=\"position:relative;\"><a href=\"#rationale\" aria-label=\"rationale permalink\" class=\"anchor before\"><svg aria-hidden=\"true\" focusable=\"false\" height=\"16\" version=\"1.1\" viewBox=\"0 0 16 16\" width=\"16\"><path fill-rule=\"evenodd\" d=\"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"></path></svg></a>Rationale</h2>\n<!--This is where you explain the reasoning behind how you propose to solve the problem. Why did you propose to implement the change in this way, what were the considerations and trade-offs. The rationale fleshes out what motivated the design and why particular design decisions were made. It should describe alternate designs that were considered and related work. The rationale may also provide evidence of consensus within the community, and should discuss important objections or concerns raised during discussion.-->\n<p>The design layed out here follows common order matching conventions that enables creation of positions that will exist alongside and be fungible with position management via existing asynchronous order settlement strategies. Most notably, this settlement strategy will enable integrators of Synthetix perps to offer a more familiar trading experience to users by acting as relayers.</p>\n<h2 id=\"technical-specification\" style=\"position:relative;\"><a href=\"#technical-specification\" aria-label=\"technical specification permalink\" class=\"anchor before\"><svg aria-hidden=\"true\" focusable=\"false\" height=\"16\" version=\"1.1\" viewBox=\"0 0 16 16\" width=\"16\"><path fill-rule=\"evenodd\" d=\"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"></path></svg></a>Technical Specification</h2>\n<!--The technical specification should outline the public API of the changes proposed. That is, changes to any of the interfaces Synthetix currently exposes or the creations of new ones.-->\n<p>Final technical details TBD once implementation has been assigned pending Spartan Council approval, but high level technical flow will follow industry standard matching practices:</p>\n<ul>\n<li>A maker creates an order, including market ID, amount, maker address, relayer address, expiry, and nonce.</li>\n<li>The order is hashed, signed, and sent to the Relayer off-chain.</li>\n<li>A taker retrieves the maker’s order exposed via the Relayer and includes appends a taker address.</li>\n<li>The order is signed and sent to the relayer.</li>\n<li>The Relayer publishes matched orders with Synthetix smart contracts, which verify the correctness of the order message payload on-chain and creates/modifies positions for both users within Synthetix (see figure below).</li>\n</ul>\n<img width='718' alt='image' src='https://github.com/Synthetixio/SIPs/assets/83029531/bc0a96d4-f8f5-4168-8a4a-ece39343aebc'>\n<p><strong>EIP-712 Order Structure:</strong></p>\n<pre><code class=\"language-solidity\">struct Order {\n    address maker;\n    address taker;\n    address relayer;\n    address market;\n    uint256 amount;\n    uint256 price;\n    uint256 expiration;\n    uint256 nonce;\n}\n</code></pre>\n<p><strong>EIP-712 Domain Separator:</strong>\nEIP712 defines a domain separator which is a struct that uniquely identifies the message to be signed. This is because messages that have the same data type across two different applications, although may look the same, may not be compatible.</p>\n<pre><code class=\"language-solidity\">bytes32 constant DOMAIN_SEPARATOR = keccak256(\n    abi.encode(\n        keccak256(\"EIP712Domain(string name,string version,uint256 chainId,address verifyingContract)\"),\n        keccak256(bytes(\"SyntheticPerpetualFutures\")),\n        keccak256(bytes(\"1\")),\n        chainId,\n        address(this)\n    )\n);\n</code></pre>\n<p>For simplicity and progressive rollout, an initial implementation should begin with fill-or-kill order types which only specify an amount and expiration without possibility for partial fills. In the future, this implementation can be adapted to stateful limit orders which can be partially filled with updated amounts.</p>\n<h3 id=\"configurable-values-via-sccp\" style=\"position:relative;\"><a href=\"#configurable-values-via-sccp\" aria-label=\"configurable values via sccp permalink\" class=\"anchor before\"><svg aria-hidden=\"true\" focusable=\"false\" height=\"16\" version=\"1.1\" viewBox=\"0 0 16 16\" width=\"16\"><path fill-rule=\"evenodd\" d=\"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"></path></svg></a>Configurable Values (Via SCCP)</h3>\n<!--Please list all values configurable via SCCP under this implementation.-->\n<p>TBD</p>\n<p>Note: Rejected as v3 is in maintenance mode</p>\n<h2 id=\"copyright\" style=\"position:relative;\"><a href=\"#copyright\" aria-label=\"copyright permalink\" class=\"anchor before\"><svg aria-hidden=\"true\" focusable=\"false\" height=\"16\" version=\"1.1\" viewBox=\"0 0 16 16\" width=\"16\"><path fill-rule=\"evenodd\" d=\"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"></path></svg></a>Copyright</h2>\n<p>Copyright and related rights waived via <a href=\"https://creativecommons.org/publicdomain/zero/1.0/\">CC0</a>.</p>"}},"pageContext":{"id":"c8a49ec7-fb83-5b7c-a05a-850e2f7442e5","frontmatter__sip":395,"__params":{"frontmatter__sip":"395"}}},"staticQueryHashes":[]}