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Update sip 412 (#2155)
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* Update sip-412.md

* fix typo
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Fenway-snx authored Nov 26, 2024
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Expand Up @@ -23,7 +23,7 @@ This SIP proposes to acquire TLX via a token<>token transaction on the following
To fund the acquisition, Synthetix would issue just over 2.6m new SNX tokens. This represents a 0.8% inflation over 1 year.

## Motivation
The most successful vaults within the Synthetix ecosystem to date have been leverage tokens. To date, TLX has launched over leverage tokens with up to 10x leverage for 10 assets. Since launch ~6 months ago, TLX have maintained a high level of professionalism and have v2 leverage tokens live and v3 leverage tokens in audit (close to launch). These aspects along with their historical alignment with the Synthetix ecosystem makes them a highly attractive protocol to acquire.
The most successful vaults within the Synthetix ecosystem to date have been leverage tokens. TLX has launched over 50 leverage tokens with up to 10x leverage for 10 assets. Since launch ~6 months ago, TLX have maintained a high level of professionalism and have v2 leverage tokens live and v3 leverage tokens in audit (close to launch). These aspects along with their historical alignment with the Synthetix ecosystem makes them a highly attractive protocol to acquire.

Rather than continuing to outsource vault strategies, Synthetix should own and operate its own vaults. This will provide more optionality for users of Synthetix (e.g. simplified LP’ing, availability of trading strategies, additional yield generation opportunities), improving the customer experience and attracting a new audience into our ecosystem.

Expand All @@ -32,7 +32,7 @@ Vertically integrating vault strategies into the Synthetix stack compliments exi
Whilst we will own vaults, we will also continue to work with vault providers utilising Synthetix liquidity.

Rather than building our own vaults and strategies from scratch, Synthetix can quickly ramp up and go to market by acquiring TLX. The acquisition is beneficial to Synthetix for the following reasons:
- **Hot start** - Rather than spending the time to build and market our own vaults, the acquisition of TLX would present Synthetix with the opportunity to go live with over 50 leverage token vaults and.
- **Hot start** - Rather than spending the time to build and market our own vaults, the acquisition of TLX would present Synthetix with the opportunity to go live with over 50 leverage token vaults with up to 10x leverage.
- **Revenue Diversification** - Vaults generate a new revenue stream that can be captured by SNX tokenholders.
- **Complementary products** - Leverage token vaults can generate volume and fees on Synthetix perp markets (e.g. levered token strategies like 3x BTC utilise Synthetix perps and continuously rebalance, generating volume and fees).
- **Strategic Fit** - The acquisition aligns with Synthetix's long-term strategy to broaden its offerings in DeFi, thereby strengthening its position as a market leader.
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