Synthetix, Kwenta launch v3 perpetuals on Arbitrum

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As a seasoned analyst with over a decade of experience in the cryptocurrency and blockchain industry, I have seen numerous projects rise and fall. However, Synthetix v3 launching on Arbitrum has piqued my interest due to its potential to disrupt the competitive DeFi ecosystem.

Following some delays in product release and subsequent changes in its governance structure, Synthetix has now unveiled their v3 liquidity platform on Arbitrum, a layer-2 solution for Ethereum. This information was shared with CryptoMoon on October 24th.

Kwenta, a platform for trading perpetual contracts, is set to become the initial Decentralized Finance (DeFi) project on Arbitrum to utilize Synthetix’s version 3 liquidity framework, as announced by Synthetix.

Synthetix, a company focusing on supplying liquidity for decentralized trading platforms, believes that allowing various token types as trading securities sets it apart within the competitive Decentralized Finance (DeFi) environment of Arbitrum.

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In August, Matt Losquadro, a contributor to Synthetix, stated that “Nothing like this is available on Arbitrum right now, and the release will involve a significant amount of unlocking.

Previously, Kwenta has collaborated with Synthetix on multiple blockchain platforms. As stated on Kwenta’s official site, their decentralized exchange for perpetuals has facilitated over $32 billion in trading volume across numerous networks.

In simpler terms, “Perpetual futures,” often referred to as “perps,” represent a kind of financial contract where traders can either purchase or sell an asset for a later date without any specific expiration time.

Synthetix, Kwenta launch v3 perpetuals on Arbitrum

Related: Synthetix activist investor ‘overhaul’ gathers 99% approval from SNX holders

Governance shakeup

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In October, the holders of Synthetix (SNX) tokens strongly endorsed a proposed restructuring of the governance system following missed product delivery deadlines, such as the delayed launch of its v3 multi-collateral perpetuals on Arbitrum.

Boasting more than $2.3 billion worth of assets secured (TVL), as per data from DefiLlama, Arbitrum stands as a thriving center for Decentralized Finance (DeFi) activities.

At the moment, GMX‘s DeFi protocol holds a significant lead in Arbitrum’s decentralized futures market, boasting approximately $390 million in Total Value Locked (TVL).

Arbitrum serves as the hub for Decentralized Finance (DeFi) derivatives. This fact is undeniable. A multitude of protocols can be found there, and the level of competition is intense,” Losquadro asserted in August.

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Synthetix, Kwenta launch v3 perpetuals on Arbitrum

On September 25th, in an SR-2 proposal, the seasoned investor Benjamin Celermajer presented a strategy for significant revamping and enhancement of both the governance structure and daily operations at Synthetix, with the aim to make it more efficient and effective.

In addition to various reported flaws, “delays in progress” were cited as hindering Synthetix from aligning with market trends, gaining user interest, and facilitating product acceptance, according to the statement.

In a blog post on October 4th, Synthetix announced that Celermajer had assumed strategic leadership within the Synthetix team following their recent reorganization.

Synthetix is transitioning into a foundation structure to make it simpler and more efficient in handling business activities involving partner agreements, along with various other advantages, according to their blog post.

If we begin to aggressively carry out our plans – by establishing multi-collateral, updating people on our progress, and setting up the framework’s foundation – there will be a noticeable increase in activity on the protocol at a fast rate,” Celermajer explained during an interview with CryptoMoon.

In the month of September, Synthetix introduced a brand-new app chain named SNAXchain, designed to offer cross-chain liquidity and trading fee income to holders of native tokens and various on-chain trading solutions.

To start with, the app chain will function as a platform for governance within the blockchain, primarily overseeing Synthetix deployments on the Ethereum mainnet and secondary scaling networks such as Optimism, Arbitrum, and Base, as stated in a blog post dated September 4th on the X platform.

Yet, Synthetix continues to investigate potential enhancements for the SNAXchain, such as staking SNX tokens, cross-chain liquidity options, and developing a unique perpetual futures product, as mentioned by Losquadro in September.

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2024-10-24 16:08