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On December 18, Synthetix took a bold step in the DeFi space by introducing multicollateral perpetuals trading on Coinbase’s Base network, enhancing user experience and versatility.
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This innovative offering allows traders to leverage popular crypto assets like cbBTC and cbETH, marking a significant shift in collateral types used in DeFi trading.
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“This collateral expansion lets traders maintain direct exposure to popular crypto assets like BTC and staked ETH,” a spokesperson for Synthetix stated, detailing the advantages of increased flexibility.
Synthetix launches multicollateral perpetuals trading on Coinbase’s Base network, boosting user flexibility with a new in-house exchange, as part of broader improvements.
Synthetix Unveils Multicollateral Perpetuals on Base Network
The latest update from Synthetix, a leading decentralized finance (DeFi) protocol, shows its commitment to innovation within the crypto trading sphere. By launching multicollateral perpetuals trading on the Base network, Synthetix enables users to utilize multiple tokens, including Coinbase Wrapped BTC (cbBTC) and Coinbase Wrapped ETH (cbETH), as collateral for leveraged trading. This transition is not only a strategic move to enhance liquidity but also part of a larger revamp following governance changes in October.
A New Era of Collateral Flexibility
The introduction of multicollateral perps underscores Synthetix’s innovative approach to capitalize on popular crypto assets. By allowing collateral options beyond native tokens, users can benefit from holding and trading well-established cryptocurrencies, enhancing their potential returns and diversifying their positions in the volatile crypto market. According to the latest data, cbBTC’s market cap exceeds $2 billion, cementing its status as a preferred Bitcoin wrapper.
Launch of Synthetix’s In-House Perpetuals Exchange
In addition to the multicollateral feature, Synthetix also launched its own perpetuals exchange application. Until now, the protocol provided essential smart contract infrastructure for third-party exchanges but lacked a direct trading platform. This development signals a shift in strategy as Synthetix seeks to become a central player in the derivatives market.
The Role of Perpetual Futures in Crypto Trading
Perpetual futures, or “perps,” are an essential tool for many traders in the crypto sphere. They allow traders to speculate on the future price of assets without the constraints of expiration dates typically associated with futures contracts. The creation of the Synthetix Exchange aims to provide a seamless trading experience, further attracting users and liquidity to its platform.
Governance Overhaul and Strategic Acquisitions
In the wake of challenges regarding product delivery, Synthetix’s governance underwent a significant overhaul after its tokenholders voted in favor of a reform plan proposed by Benjamin Celermajer in September. This change reflects the community’s desire for better operational efficiency and product delivery in the competitive DeFi landscape.
Acquisition of Key Platforms for Growth
Further enhancing its offerings, Synthetix has acquired the Kwenta platform, known for its derivatives trading solutions, and the leveraged token trading platform TLX. These acquisitions are not merely expansionist in nature; they are part of a strategic vision to reinvigorate the platform’s capabilities. Synthetix is also in the process of establishing a foundation to improve collaboration with partners.
Looking Ahead in the DeFi Space
With a total value locked of around $14 billion, Base has shown its prominence as a leading Ethereum L2 network, second only to Arbitrum, according to L2Beat. The successful integration of multicollateral perps and the new exchange underscores Synthetix’s evolution in a rapidly changing DeFi sector.
Conclusion
As Synthetix embraces a new era of collateral flexibility and direct trading capabilities, traders can look forward to a more versatile platform. This strategic revamp positions Synthetix as a competitive player in the DeFi ecosystem, enabling users to more effectively manage their positions in commonly traded crypto assets. The ongoing developments signal a robust future for decentralized trading platforms, emphasizing user empowerment and asset diversification.
