Synthetix, a leading decentralized finance (DeFi) protocol, has announced that it is now accepting multiple token types as collateral for leveraged perpetuals trading on Coinbase’s Base network. This development marks another significant step in the protocol’s broader revamp, which began following a governance shakeup in October.
Multicollateral Perps Launched on Base Network
As part of its revamped strategy, Synthetix has launched "multicollateral perps" on the Base network, one of Ethereum’s most popular layer 2 (L2) scaling networks. This new feature allows users to post tokens such as Coinbase Wrapped BTC (cbBTC) and Coinbase Wrapped ETH (cbETH) as trading collateral.
Benefits of Multicollateral Perps
According to Synthetix, the addition of multicollateral perps will provide several benefits for traders. These include:
- Direct Exposure to Popular Crypto Assets: Traders can maintain direct exposure to popular crypto assets like BTC and staked ETH, allowing them to take advantage of market opportunities.
- More Control over Margin Positions: With multicollateral perps, traders have more control over their margin positions, enabling them to adjust their risk management strategies as needed.
- Easier Access to Hedging: The new feature also provides easier access to hedging, allowing traders to mitigate potential losses and maximize gains.
Coinbase’s cbBTC Emerges as a Popular Choice
Coinbase’s cbBTC has gained significant traction in the market, with a market capitalization of over $2 billion as of December 18th. This underscores the growing demand for convenient and accessible Bitcoin wrappers.
Base Network: A Hub for DeFi Activity
The Base network, with around $14 billion in total value locked (TVL), is the second most popular Ethereum L2 after Arbitrum. Its popularity can be attributed to its high scalability and low transaction costs, making it an attractive choice for DeFi users.
Synthetix Exchange: A New Perpetuals Trading Platform
In addition to launching multicollateral perps on Base, Synthetix has also introduced its own perpetuals exchange application, Synthetix Exchange. This marks a significant shift in the protocol’s strategy, as it now offers an in-house trading app for traders.
Synthetix Exchange: A Flagship Product
The launch of Synthetix Exchange is part of the protocol’s broader revamp, aimed at improving its governance and day-to-day operations. The new exchange application will provide a seamless trading experience for users, with advanced features and tools designed to cater to their needs.
Synthetix’s Ongoing Revamp
In October, Synthetix underwent a significant governance shakeup after tokenholders voted overwhelmingly in favor of a proposed overhaul. This decision was driven by the protocol’s failure to meet product delivery deadlines.
Key Takeaways from Synthetix’s Governance Shakeup
The governance shakeup has led to several significant changes, including:
- Acquisition of Perps Platform Kwenta: Synthetix acquired perps platform Kwenta, aimed at enhancing its derivatives offerings.
- Leveraging Token Trading Platform TLX: The protocol is leveraging token trading platform TLX to improve its trading capabilities.
- Reorganization as a Foundation: Synthetix is reorganizing as a foundation to streamline and improve its operations.
Conclusion
The expansion of multicollateral perps on Base network marks another significant step in Synthetix’s broader revamp. With the introduction of Synthetix Exchange, traders now have access to a comprehensive trading platform designed to meet their needs. As the DeFi landscape continues to evolve, Synthetix remains at the forefront, committed to delivering innovative solutions and enhancing its users’ experience.
Stay Ahead in the World of DeFi
To stay up-to-date with the latest developments in the DeFi space, follow our newsletter, Finance Redefined. Each week, we provide a toolkit that breaks down the latest DeFi news, offers sharp analysis, and uncovers new financial opportunities to help you make informed decisions.
By subscribing to our newsletter, you’ll gain access to expert insights, market analysis, and in-depth coverage of the most significant DeFi developments. Whether you’re a seasoned trader or a newcomer to the world of DeFi, our newsletter is designed to keep you ahead of the curve.
Subscribe Now
Join thousands of professionals and enthusiasts who rely on Finance Redefined for expert insights into the world of DeFi. Subscribe now and receive:
- Weekly Toolkits: Expert analysis and market insights delivered straight to your inbox.
- Breaking News: Stay up-to-date with the latest DeFi developments, including new protocol launches and regulatory updates.
- Opportunity Alerts: Get notified about emerging trends and opportunities in the DeFi space.
By subscribing to our newsletter, you’ll become part of a community that’s shaping the future of finance.
