Synthetix, a leading decentralized finance (DeFi) protocol, has announced the acceptance of multiple token types as collateral for leveraged perpetuals trading on Coinbase’s Base network. This development is part of the protocol’s broader revamp following a governance shakeup in October.
Multicollateral Perps on Base
The introduction of multicollateral perps on Base, one of Ethereum’s most popular layer 2 (L2) scaling networks, enables users to post tokens such as Coinbase Wrapped BTC (cbBTC) and Coinbase Wrapped ETH (cbETH) as trading collateral. This expansion allows traders to maintain direct exposure to popular crypto assets like Bitcoin and staked Ethereum.
Benefits of Multicollateral Perps
According to Synthetix, the addition of multicollateral perps offers several benefits, including:
- Direct Exposure: Traders can maintain direct exposure to popular crypto assets like BTC and staked ETH.
- More Control Over Margin Positions: Users have more control over their margin positions and easier access to hedging.
- Easier Access to Hedging: The multicollateral perps feature provides traders with easier access to hedging opportunities.
Coinbase’s cbBTC: A Popular Bitcoin Wrapper
Coinbase’s cbBTC has emerged as one of the most popular Bitcoin wrappers, with a market capitalization of over $2 billion as of December 18, according to CoinMarketCap. This highlights the growing demand for secure and reliable Bitcoin wrapper solutions.
Base Network: A Leading Ethereum L2 Scaling Solution
The Base network is the second most popular Ethereum L2 scaling solution, with around $14 billion in total value locked (TVL), according to L2Beat. This demonstrates the effectiveness of Base in addressing scalability issues on the Ethereum network.
Synthetix Exchange: A New Perpetuals Exchange Application
On December 18, Synthetix launched its own perpetuals exchange application, the Synthetix Exchange. This marks a significant development for the protocol, which previously provided smart contract infrastructure for other exchanges to build on but lacked an in-house trading app.
Synthetix Exchange: A Flagship Product
The Synthetix Exchange will become one of the protocol’s new flagship products, according to Synthetix. This highlights the importance of the exchange application in the protocol’s roadmap.
Perpetual Futures: Derivatives for Traders
Perpetual futures, or "perps," are derivatives that allow traders to buy or sell an asset at a future date with no expiration. The Synthetix Exchange will provide users with access to this type of derivative trading.
Ongoing Revamp of Synthetix
The introduction of multicollateral perps and the launch of the Synthetix Exchange are part of a broader revamp of the DeFi protocol following a governance shakeup in October. The revamp aims to improve the governance and day-to-day operations of Synthetix.
Governance Shakeup: A New Era for Synthetix
In October, Synthetix token holders voted overwhelmingly in favor of a proposed governance shakeup after the protocol fell short of product delivery deadlines. The shakeup includes the acquisition of perps platform Kwenta and leveraged token trading platform TLX.
SNAXchain: A New App Chain for Cross-Chain Liquidity
In September, Synthetix launched a new app chain called SNAXchain, aimed at bringing cross-chain liquidity and trading fee revenues to native-token stakers and on-chain trading products. This development is part of the protocol’s ongoing efforts to improve its capabilities.
Conclusion
The introduction of multicollateral perps and the launch of the Synthetix Exchange mark significant developments for the DeFi protocol. The expansion of collateral options and the introduction of a new perpetuals exchange application demonstrate the protocol’s commitment to improving user experience and providing more advanced trading features. As the DeFi space continues to evolve, Synthetix is poised to play a leading role in shaping the future of decentralized finance.
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