Synthetix Introduces Multicollateral Perps, Allowing Users to Post Tokens as Collateral
In a significant move, decentralized finance (DeFi) protocol Synthetix has begun accepting multiple token types as collateral for leveraged perpetuals trading on Coinbase’s Base network. This development was announced by Synthetix on December 18.
Expanding Collateral Options: A Key Feature of Synthetix Exchange
The launch of multicollateral perps on Base, one of Ethereum’s most popular layer 2 (L2) scaling networks, is part of a broader revamp of the DeFi protocol following a governance shakeup in October. By introducing multi-collateral perps, users will now be able to post tokens such as Coinbase Wrapped BTC (cbBTC) and Coinbase Wrapped ETH (cbETH) as trading collateral.
Benefits of Multicollateral Perps
Synthetix highlights the benefits of this feature, stating that it allows traders to maintain direct exposure to popular crypto assets like BTC and staked ETH. This, in turn, gives them more control over margin positions and easier access to hedging opportunities.
The Rise of cbBTC and cbETH
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 popularity is not surprising, given the growing demand for wrapped tokens that provide users with easier access to decentralized finance.
Base Network: A Key Player in Ethereum’s L2 Ecosystem
With around $14 billion in total value locked (TVL), Base is the second most popular Ethereum L2 after Arbitrum, according to L2Beat. This significant user base underscores the importance of supporting Base and its users through innovative features like multicollateral perps.
Synthetix Exchange: A New Flagship Product
On December 18, Synthetix also launched its own perpetuals exchange application, marking a new milestone for the protocol. By providing an in-house trading app, Synthetix is taking a significant step towards becoming a self-sustaining DeFi protocol.
Perpetual Futures: A Key Component of DeFi Trading
Perpetual futures, or "perps," are derivatives that enable traders to buy or sell an asset at a future date without expiration. These instruments have become increasingly popular in the DeFi space due to their flexibility and potential for high returns.
The Ongoing Revamp of Synthetix
Synthetix’s decision to introduce multicollateral perps is part of a broader effort to revamp the protocol following a governance shakeup in October. The proposed governance shakeup, led by Benjamin Celermajer, aimed to overhaul and improve the governance and day-to-day operations of Synthetix.
Key Changes and Improvements
As part of this revamp, Synthetix has:
- Acquired perps platform Kwenta: This acquisition will enable Synthetix to provide a more comprehensive range of derivatives products.
- Leveraged token trading platform TLX: By integrating TLX into its ecosystem, Synthetix can offer users a wider range of trading options and improve the overall user experience.
- Reorganized as a foundation: This change will allow Synthetix to streamline and improve its capabilities regarding business activities that require signing contracts with partners.
A New Era for DeFi Trading
The launch of multicollateral perps on Base marks an important milestone in the evolution of DeFi trading. By providing users with more flexibility and control over their margin positions, Synthetix is further establishing itself as a leader in the DeFi space.
Conclusion
Synthetix’s expansion into multicollateral perps on Coinbase’s Base network represents a significant step forward for the protocol. By offering users a wider range of collateral options and enhancing the overall trading experience, Synthetix is well-positioned to continue driving innovation in the DeFi ecosystem.
About Synthetix
Synthetix is an Ethereum-based decentralized finance (DeFi) protocol that provides users with a comprehensive suite of derivatives products. By leveraging cutting-edge technology and innovative features like multicollateral perps, Synthetix aims to revolutionize the way users interact with DeFi trading.
Get Involved
If you’re interested in learning more about Synthetix or exploring its latest developments, we recommend visiting their official website or joining their community forums. By staying up-to-date on the latest news and updates from Synthetix, you can stay ahead of the curve and make informed decisions about your DeFi investments.
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