SYDNEY--(BUSINESS WIRE)--Synthetix, the leading crypto derivatives markets ecosystem, has deployed V3 of its perpetuals contracts protocol on Base, becoming the first to introduce a major perpetuals product for crypto on the new Ethereum layer 2. The launch of Perps V3 provides developers on Base with direct access to Synthetix’s turnkey derivatives-creation solution and the necessary liquidity needed to launch new crypto perps products. It also allows traders within the Base and Coinbase ecosystem to experiment more easily with Synthetix-powered exchanges, such as Kwenta, Polynomial, and dHEDGE. More perps projects building on Synthetix V3 will also be deploying on Base in the coming months, including a new perpetuals futures exchange launching soon, Infinex.
“The problem is, we're still using centralized infrastructure for most crypto transactions,” said Kain Warwick, Founder of Synthetix. “Most crypto activity is not leveraging the decentralized technology we’ve built.”
“Base serves as a gateway for the millions of Coinbase users. By deploying Synthetix Andromeda to Base, we aim to generate increased trading volume for Synthetix perps across the Ethereum ecosystem.”
Synthetix Perps V3 is the first product to launch with the completion of the Synthetix V3 system upgrade which has been in progress since late last year. Since launching in January 2023, V2 of the perpetuals protocol has generated more than $43 billion in trading volume, attracting tens of thousands of unique traders and accruing over $34 million in fees for stakers of Synthetix’s token SNX.
Perps V3 aims to improve both the trading and developer experience with a number of key features including, for the first time, offering support for alternative forms of collateral for its liquidity providers, including USDC available on Base as well as sUSD, sETH, sBTC, and other governance approved spot synthetic assets. Previously, collateral options were limited to SNX collateral. The introduction of USDC as collateral offers new opportunities for liquidity provision and fee generation for Synthetix liquidity providers and greater flexibility for Synthetix traders, while also curbing SNX inflation.
“In order to grow trade volume, Synthetix needs to be an attractive destination for liquidity providers to bring collateral,” said Synthetix Core Contributor, Cavalier. “Experimenting with popular assets like USDC massively increases the capacity of Synthetix to attract new collateral and launch new derivative markets. Eventually the end game for Synthetix could be to govern over, and earn fees from, a large and diverse range of collateral, across many chains.”
In additional to multi-collateral support, additional improvements featured on V3 include:
- Cross Margin Capabilities: V3 enables traders to open multiple positions across different markets, subject to a limit of one position per market. The account margin value fluctuates based on the PNL of each open position.
- Composable Account Management: V3 enables delegation of account permissions, such as modifying collateral and managing positions, to additional addresses, enhancing extensibility and composability like smart wallets, account abstraction and other integrations.
- Liquidation Improvements: V3 implements gradual, non-sandwichable liquidation of large positions, with configurable delays between partial liquidations.
- Deterministic Settlements: V3 improves the settlement process to ensure that the execution price is the earliest valid price post-commitment, minimizing the impact of network congestion.
“The developer community of every onchain network is so important,” said Jesse Pollak, Creator of Base. “At Base, we’re always looking for opportunities to attract new builders who will in turn create new markets and bring in new consumers to further grow the Base ecosystem. By building on Base, Synthetix will help bring in the next generation of novel financial instruments onchain.”
For more information, visit https://synthetix.io/perps.
About Synthetix
Synthetix is a leading crypto derivatives markets ecosystem powered by the Synthetix protocol. Built on Ethereum, the Synthetix protocol provides developer teams with the permissionless infrastructure and deep liquidity required to create new financial products and facilitate new markets. By empowering DeFi to reach its full potential, Synthetix is democratizing access to financial markets and products, catalyzing a paradigm shift towards a more equitable, permissionless and innovative financial landscape.
