Originally published on: October 24, 2024
In an exciting development for the decentralized finance (DeFi) world, Synthetix has officially launched its v3 liquidity platform on Arbitrum, an Ethereum layer-2 solution. Following a governance overhaul prompted by product delays, Synthetix made this groundbreaking announcement on October 24th.
Kwenta, a popular perpetuals exchange, will be the first DeFi protocol on Arbitrum to leverage Synthetix’s v3 liquidity infrastructure, marking a significant milestone in the expanding DeFi ecosystem.
With a focus on providing liquidity for decentralized exchanges (DEXs), Synthetix aims to set v3 apart on Arbitrum by introducing the acceptance of multiple token types as trading collateral. According to Matt Losquadro, a Synthetix contributor, this innovative approach is set to unlock vast opportunities in the competitive DeFi landscape of Arbitrum.
Kwenta, a long-time partner of Synthetix across various blockchain networks, has already facilitated over $32 billion in trading activity across multiple chains on its perpetuals DEX.
Perpetual futures, also known as “perps,” are derivatives that allow traders to buy or sell assets at a future date without an expiration.
The governance revamp at Synthetix, driven by SNX token holders’ overwhelming support, aims to address prior shortcomings in meeting product delivery deadlines. This shakeup includes the launch of v3 multi-collateral perpetuals on Arbitrum.
Arbitrum, with over $2.3 billion in total value locked (TVL) and a strong presence in DeFi derivatives, is considered a central hub for DeFi activities. The DeFi protocol GMX currently leads Arbitrum’s decentralized perps market, emphasizing the fierce competition in the space.
An ambitious proposal by Benjamin Celermajer outlines a comprehensive plan to enhance the governance and operations of Synthetix. This initiative, along with the platform’s reorganization as a foundation, seeks to strengthen the protocol’s activities and partnerships.
The recent introduction of the SNAXchain app chain by Synthetix aims to revolutionize cross-chain liquidity and trading-fee revenues for native-token stakers and on-chain trading products. Future developments on SNAXchain may include staking for SNX, cross-chain liquidity provisions, and the launch of a custom perps product.
By staying up-to-date with groundbreaking developments like Synthetix’s v3 perpetuals launch on Arbitrum, readers can gain valuable insights into the evolving DeFi landscape and potential investment opportunities in the crypto space. Discover more articles like this by subscribing to the Finance Redefined newsletter for the latest DeFi updates and analytical commentary that can help you make informed financial decisions confidently.
