30s Summary
Cryptocurrency company Synthetix has launched its v3 liquidity platform on Ethereum layer-2 solution, Arbitrum. The new system, first used by perpetuals exchange Kwenta, allows multiple kinds of tokens to be used as trading collateral. Despite product delays, the launch sees Synthetix move into a new governance direction, as agreed upon by most of its tokenholders. Arbitrum currently hosts a total of $2.3 billion in locked-in value, while GMX dominates the decentralized perps market with close to $390 million. Synthetix introduced SNAXchain in September to increase liquidity and trading fee earnings.
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The cryptocurrency company Synthetix has finally introduced its new v3 liquidity platform on Arbitrum, a type of Ethereum, following some unforeseen product delays that ended up leading to a big shake-up at the company. This was all officially confirmed by Cointelegraph on October 24th.
The first company to use this new system on Arbitrum is Kwenta, a popular perpetuals exchange. Synthetix decided to take a new approach with their v3 platform by accepting multiple kinds of tokens as trading collateral to make it stand out in Arbitrum’s crowded decentralized finance environment.
According to Matt Losquadro, a contributor to Synthetix, they’re treading new ground here. No one else is offering what they’re doing on Arbitrum which is going to allow a huge number of possibilities.
Synthetix and Kwenta are already working very closely together across other blockchain networks. Kwenta’s perpetual DEX has seen enormous amounts of trading activity — over $32 billion across lots of different chains, as confirmed by their website. Perpetual futures, also known as “perps,” let traders buy or sell at a later date, with no set expiration time.
Due to some delays with product delivery, including launching this v3 platform, Synthetix had to head in a new governance direction as agreed upon by a large majority of its tokenholders. Total value locked (TVL) in Arbitrum is pretty impressive with more than $2.3 billion, according to data from DefiLlama, making it a hot spot for decentralized finance (DeFi) activities.
Decentralized perps market within Arbitrum is currently dominated by DeFi protocol GMX, with close to $390 million locked in total value. Arbitrum is the go-to place for DeFi derivatives, featuring many competing protocols.
In September, Synthetix introduced a new app chain, SNAXchain, which was created to bring liquidity and trading fee earnings to those who stake native tokens and onchain trading products. Initial plans for the app chain are to manage Synthetix deployments on the Ethereum mainnet and other scaling chains. However, they are actively thinking about including features such as staking for SNX, cross-chain liquidity, and powering a newly built perps product.
Source: Cointelegraph