This is initial feasibility research into using synths other than sUSD as margin for futures positions.
There are multiple benefits:
Users can maintain exposure to any other asset (that can have a synth) and get leverage on that collateral. E.g. margin sETH and take 10x leverage on it e.g. on sBTC.
Creates a very compelling use-case and higher demand for synths and Synthetix as a platform for synths, as opposed to mainly a stable-coin platform (sUSD). E.g. users would have a productive way to use any exposure they have to gold, or non-wrapped alts.
Differentiates Synthetix perps from other perp platforms (in which it will be more difficult to accomplish the same task)
Especially suitable for L2 due not requiring deep liquidity of the "actual" non synths assets on the same chain.
Allows "basis trading" all inside of same platform - "margin with sETH + short sETH".
Reduces funding rate (by making basis trading more efficient) and so reduces both funding rate for users, and skew exposure for debt pool.
The current idea is to:
Allow a position to be margined by a single synth (either sUSD or some other synth), or perhaps a limited number of synths (e.g. 2 synths)
For all USD value calculations (checking margins, leverage, etc) - use exchange rates to translate deposited margin to dollar value.
Feasibility:
[ ] implement ability to use sETH margin for positions instead of sUSD
[ ] generalise sETH to any synth, and allow user to select
This is initial feasibility research into using synths other than sUSD as margin for futures positions.
There are multiple benefits:
The current idea is to:
Feasibility: