Synthetix, a leading cryptocurrency derivatives marketplace, achieves a DeFi milestone by implementing version three of its perpetual contracts protocol on Base. Base is an Ethereum Layer-2 blockchain created by Coinbase. This change makes Synthetix the first company to launch a significant cryptocurrency permanent product on the new Ethereum Layer-2 network.
Breaking New Ground
Synthetix’s Perps V3 aims to streamline the creation and deployment of crypto perpetuals products for developers on the Base blockchain. This major upgrade enhances the accessibility of Synthetix’s turnkey derivatives solution. It provides developers with direct access to product solutions and liquidity essential for launching new crypto perps’ products.
Expanding Ecosystem and Trading Opportunities
With the deployment of Perps V3 on Base, traders within the Base and Coinbase ecosystem have a seamless way to experiment. This includes Synthetix-powered exchanges like Kwenta, Polynomial, and dHEDGE. Additionally, the soon-to-launch perpetuals futures exchange, Infinex, promises to add further diversity to the Synthetix ecosystem.
Strategic Collaboration for Growth
Kain Warwick, the Founder of Synthetix, emphasized the strategic importance of Base, stating, “Base serves as a gateway for the millions of Coinbase users. By deploying Synthetix Andromeda to Base, we aim to generate increased trading volume for Synthetix perps across the Ethereum ecosystem.”
Key Features of Perps V3
Perps V3 introduces several key features aimed at enhancing the trading and developer experience. Notable improvements include the utilization of alternative collateral for liquidity providers, such as USDC, sUSD, sETH, and sBTC. This marks a departure from the previous limitation to Synthetix’s native token, SNX. It provides greater flexibility for liquidity providers and traders.
The introduction of cross-margin capabilities, composable account management, and deterministic settlements underscores the protocol’s commitment to enhancing user experience. Simultaneously, it reflects its dedication to expanding functionality.
Synthetix’s Growth Trajectory
Since the launch of V2 of the perpetuals protocol in January 2023, Synthetix has witnessed remarkable success. This includes over $43 billion in trading volume and the attraction of tens of thousands of unique traders. The continuous development and innovation underscore Synthetix’s commitment to staying at the forefront of the rapidly evolving DeFi space.
Market Impact and Future Outlook
The introduction of Perps V3 has already impacted the market sentiment around Synthetix’s native token, SNX. Despite recent price fluctuations, the deployment of the first perpetuals protocol on Base blockchain positions SNX for potential recovery. Technical indicators suggest a possible uptrend.
As Synthetix pioneers decentralized crypto trading advancements, collaboration with Base opens doors for future projects. This positions Synthetix to compete favorably with centralized platforms.
Conclusion
Synthetix’s deployment of Perps V3 on Base blockchain marks a significant step forward in crypto derivatives’ evolution. Enhancing capabilities, strategic collaborations, and commitment to user experience establish Synthetix as a key player in decentralized finance. These factors position the platform for sustained prominence. As the project continues its vision, the crypto community eagerly awaits further innovations and developments from Synthetix.
Disclaimer
FAQ
DeFI stands for decentralized finance, offering open and accessible financial systems built on blockchain technology.
Yield farming involves earning interest by lending or staking cryptocurrencies.
Layer 1 blockchains are the primary networks (e.g., Ethereum), while layer 2 blockchains scale and improve performance on top of them.
