Synthetix Launches Multi-Collateral Perpetual Contracts on Base Exchange Amid Platform Revamp
Synthetix, a leading DeFi protocol, has introduced a significant enhancement to its services by accepting multiple token types as collateral for leveraged perpetuals trading on Coinbase’s Base network. This development is part of a broader revamp of the protocol, following a governance shakeup in October.
Multicollateral Perps on Base: A Major Milestone
The launch of multicollateral perps on Base marks a significant milestone for Synthetix. By allowing users to post tokens such as Coinbase Wrapped BTC (cbBTC) and Coinbase Wrapped ETH (cbETH) as trading collateral, Synthetix is providing users with greater flexibility and control over their margin positions.
According to Synthetix, this expansion offers several benefits, including:
- Direct exposure to popular crypto assets: Users can maintain direct exposure to popular crypto assets like BTC and staked ETH.
- More control over margin positions: Traders have more control over their margin positions, allowing them to manage their risk more effectively.
- Easier access to hedging: The multicollateral perps feature provides easier access to hedging, enabling traders to mitigate potential losses.
Coinbase’s cbBTC: A Growing Popularity
Coinbase Wrapped BTC (cbBTC) has emerged as one of the most popular Bitcoin wrappers, with a market capitalization of over $2 billion as of December 18th. This is according to CoinMarketCap, which provides real-time data on the cryptocurrency market.
Base Network: A Leading Ethereum Layer 2 Scaling Solution
The Base network is a leading Ethereum layer 2 (L2) scaling solution, with around $14 billion in total value locked (TVL). According to L2Beat, Base is the second most popular Ethereum L2 after Arbitrum. This indicates the growing adoption of Base as a scalable and secure platform for decentralized applications.
Synthetix Exchange: A New Perpetuals Trading Application
On December 18th, Synthetix launched its own perpetuals trading application, the protocol said. The new app provides users with a seamless trading experience, allowing them to buy or sell an asset at a future date with no expiration.
Perpetual futures, or "perps," are derivatives that let traders buy or sell an asset at a future date without any expiration. This feature is particularly useful for traders who want to manage their risk and hedge against potential losses.
Synthetix’s Ongoing Revamp
The introduction of multicollateral perps on Base and the launch of Synthetix Exchange are part of a broader revamp of the protocol. In October, token holders voted overwhelmingly in favor of a proposed governance shakeup after the protocol fell short of product delivery deadlines.
The shakeup aimed to completely overhaul and improve the governance and day-to-day operations of Synthetix. The protocol subsequently acquired perps platform Kwenta and leveraged token trading platform TLX.
Synthetix’s Reorganization
As part of its ongoing revamp, Synthetix is reorganizing as a foundation to streamline and improve its capabilities regarding business activities that require signing contracts with partners. This move is expected to bring several benefits, including:
- Improved governance: The new governance structure will provide more transparency and accountability within the protocol.
- Enhanced collaboration: Synthetix will be able to collaborate more effectively with partners and stakeholders, leading to better decision-making and outcomes.
Conclusion
The introduction of multicollateral perps on Base and the launch of Synthetix Exchange are significant developments for the DeFi protocol. By providing users with greater flexibility and control over their margin positions, Synthetix is enhancing its services and meeting the growing demand for decentralized finance solutions.
As the DeFi space continues to evolve, Synthetix’s ongoing revamp demonstrates its commitment to innovation and improvement. With a strong focus on governance, collaboration, and user experience, Synthetix is well-positioned to remain a leading player in the DeFi ecosystem.
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