Originally published on: October 24, 2024
Synthetix has made a significant splash in the DeFi world by launching its v3 liquidity platform on Arbitrum, an Ethereum layer-2 solution. This move comes after a governance overhaul at the decentralized finance protocol, following delays in product releases. Kwenta, a perpetuals exchange, will be the first to leverage Synthetix’s v3 liquidity infrastructure on Arbitrum.
By accepting multiple token types as trading collateral, Synthetix aims to set v3 apart in Arbitrum’s competitive DeFi landscape. According to Matt Losquadro, a Synthetix contributor, this unique feature is a game-changer that is yet to be seen on Arbitrum, creating a huge opportunity for growth.
Kwenta, which already collaborates with Synthetix on other blockchain networks, has facilitated over $32 billion in trading activity across various chains. Perpetual futures, known as “perps,” are derivatives that allow traders to buy or sell assets at a future date with no expiration.
Following a proposed governance shakeup by Synthetix token holders, the protocol is striving for improved performance and delivery. With over $2.3 billion in total value locked on Arbitrum, DeFi activity is thriving on the platform. However, challenges remain, with DeFi protocol GMX dominating the decentralized perps market.
In a strategic move to enhance governance and operational efficiency, Synthetix is reorganizing as a foundation. This restructuring is expected to streamline business activities and improve partnerships. Benjamin Celermajer, a core contributor at Synthetix, is leading the charge to revitalize the protocol and drive growth.
Synthetix recently launched SNAXchain, an app chain intended to boost cross-chain liquidity and trading-fee revenues for native-token stakers. The platform will initially serve as an on-chain governance tool for managing Synthetix deployments on Ethereum mainnet and scaling chains like Optimism and Arbitrum.
As Synthetix continues to innovate and expand its offerings, the DeFi community eagerly anticipates the impact of its latest developments. Stay tuned for more exciting updates in the fast-evolving world of decentralized finance.
