Originally published on: October 24, 2024
Synthetix has made waves in the DeFi world by launching its v3 liquidity platform on Arbitrum, an Ethereum layer-2 solution. This comes after a period of delays that led to a governance revamp at the decentralized finance protocol, as reported by Cointelegraph on Oct. 24.
Kwenta, a popular perpetuals exchange, is set to be the first DeFi protocol on Arbitrum to leverage Synthetix’s v3 liquidity infrastructure. This strategic partnership aims to bring a new level of innovation to Arbitrum’s competitive DeFi landscape.
The key differentiator of Synthetix’s v3 platform on Arbitrum is its acceptance of multiple token types as trading collateral. This unique feature is expected to unlock significant opportunities for traders and investors. Matt Losquadro, a Synthetix contributor, expressed excitement about the launch, stating, “No one currently has this on Arbitrum, and it’s going to be an extremely large unlock.”
Kwenta, which has already collaborated with Synthetix on various blockchain networks, has facilitated over $32 billion in trading activity across multiple chains. The perpetual futures offered on Kwenta enable traders to speculate on asset prices without a set expiration date.
Synthetix recently underwent a governance overhaul following delays in product delivery. The community voted in favor of restructuring to address these issues and enhance operational efficiency. With over $2.3 billion in total value locked, Arbitrum has become a hub for DeFi activities, attracting various protocols and competition.
Benjamin Celermajer, a long-term SNX investor, proposed a comprehensive governance improvement plan to address the protocol’s shortcomings. As Synthetix realigns its strategy, the focus is on accelerating product development, enhancing communication, and improving governance structure.
Synthetix’s recent launch of SNAXchain aims to further expand its cross-chain liquidity and trading capabilities. This initiative will not only streamline governance but also introduce staking rewards for SNX holders and innovative perps products in the future.
As Synthetix continues to innovate and strengthen its ecosystem, the partnership with Kwenta on Arbitrum marks a significant milestone in the DeFi space. Stay tuned for more exciting developments from these leading platforms.
