Synthetix, a prominent decentralized finance (DeFi) protocol, has announced the introduction of multiple token types as collateral for leveraged perpetuals trading on Coinbase’s Base network. This development is part of a broader revamp of the DeFi protocol following a governance shakeup in October.
Multicollateral Perps on Base Network
The launch of "multicollateral perps" on Base, one of Ethereum’s most popular layer 2 (L2) scaling networks, marks an important milestone for Synthetix. With the introduction of multi-collateral perps, users can now post tokens such as Coinbase Wrapped BTC (cbBTC) and Coinbase Wrapped ETH (cbETH) as trading collateral.
"This collateral expansion lets traders maintain direct exposure to popular crypto assets like BTC and staked ETH […] and gives them more control over margin positions and easier access to hedging," Synthetix stated in a press release.
Coinbase’s cbBTC has emerged as one of the most widely used Bitcoin wrappers, boasting a market capitalization of over $2 billion as of December 18, according to CoinMarketCap. Base, with around $14 billion in total value locked (TVL), ranks as the second most popular Ethereum L2 after Arbitrum, according to L2Beat.
Synthetix Exchange App: A New Perps Trading Platform
In addition to expanding collateral options, Synthetix has also launched its own perpetuals exchange application. This move represents a significant shift for the protocol, which previously provided smart contract infrastructure for other exchanges but lacked an in-house trading platform.
"Synthetix will continue to support and welcome builders of derivatives products and exchanges," the protocol stated. "Synthetix Exchange will become one of our new flagship products."
Perpetual futures, or "perps," are a type of derivative that enables traders to buy or sell an asset at a future date without expiration.
Governance Shakeup and Ongoing Revamp
The introduction of multicollateral perps on Base network is part of Synthetix’s ongoing efforts to revamp its operations following a governance shakeup in October. Tokenholders overwhelmingly voted in favor of a proposed governance overhaul, which aimed to improve the protocol’s productivity and competitiveness.
In September, Benjamin Celermajer, a longtime SNX investor, presented a governance proposal outlining a plan to "completely overhaul" Synthetix’s governance structure and day-to-day operations.
Synthetix has since acquired perps platform Kwenta and leveraged token trading platform TLX. The protocol is also reorganizing as a foundation to streamline its capabilities regarding business activities that require signing contracts with partners, among other benefits.
SNAXchain: A New App Chain for Cross-Chain Liquidity
In September, Synthetix launched SNAXchain, a new app chain designed to bring cross-chain liquidity and trading-fee revenues to native-token stakers and on-chain trading products. This development is part of the protocol’s ongoing efforts to enhance its capabilities and competitiveness in the DeFi space.
Conclusion
Synthetix’s introduction of multicollateral perps on Base network marks an important milestone for the DeFi protocol. With this expansion, users can now access a wider range of collateral options, enhancing their trading experience and improving liquidity.
As Synthetix continues its ongoing revamp, it is clear that the protocol is committed to staying at the forefront of the DeFi space. With its new app chain SNAXchain and perpetuals exchange platform Synthetix Exchange, the protocol is poised for significant growth and innovation in the coming months.
Future Developments
As Synthetix continues to evolve, it will be interesting to see how the protocol develops its multicollateral perps on Base network. With its focus on improving liquidity and trading experiences, Synthetix is likely to remain a key player in the DeFi space for years to come.
Sources
- Synthetix
- CoinMarketCap
- L2Beat
