Melon integrates Synthetix
A new Melon Funding Proposal has been awarded
We are pleased to announce that we have approved the proposal (MFP#4) made by Simone Conti and Emiliano Bonassi for the integration of Synths within the Melon Protocol.
Below is a summary of the proposal which you can find in full here.
Description of the proposal
The proposal consists of adding support for Synthetix assets, creating Synthetix Exchange adapter and price feed.
Synthetix is among the main DeFi players at the moment. For those not familiar with Synthetix, it is a platform which enables the creation of on-chain synthetic assets (Synths) that track the value of assets in the real world.
Examples of available assets within the platform are synthetic fiat currencies (sUSD, sAUD, sKRW, etc.), synthetic commodities such as gold (sXAU, sOIL), synthetic main cryptocurrencies (sBTC, sETH, sXRP, ..) as well as more complex assets such as equity indices (sNIKKEI, sFTSE). Moreover, the basket of crypto assets are in both long and short form.
Any synths are in the form of ERC-20 tokens and thanks to their technical architecture Synthetix Exchange allows the trading of them immediate and without slippage.
For further information please refer to this blog post.
Once delivered, the technical solution will enable anyone with a Melon fund on v2 to have access to any Synths and be able to curate a more sophisticated range of specialised trading strategies with a definitely wider asset allocation.
Synergies/Benefits to the Melon ecosystem
This proposal brings several benefits to the Melon Ecosystem:
- Integration with Synthetix and positioning in the DeFi Space
- Immediate “all together” addition of a relevant bunch of assets available for fund managers
- Ability for fund managers to define more elaborate asset allocations and more complex trading strategies
- No slippage trading for the new assets (Synths) added to the Melon Ecosystem
Scope of the work
The following technical activities are the main part of the work:
- Preliminary technical assessment of latest Melon architecture
- Build Synthetix smart contract adapter to trade synthetic assets on Synthetix
- Build Synthetix smart contract price feed to get latest prices from Synthetix
- Write test suites for all the contracts developed
- Perform E2E test of the solution, creating a fund and rebalancing it in one of the testnet supported
- Writing technical documentation
In addition, the Synthetix team and community will be involved through co-marketing activities that will help promote the new Melon functionality making all Synthetix users aware of the possibility of creating a Synths fund.
The intention of Simone and Emiliano is to continue to build on top of the protocol bringing value to it such as gasless operations, layer 2 solutions, flashable funds and rehypothecate funds, redeemable assets integration, fiat on/off ramp and others.
