Synthetix to Phase Out Base Network Deployment, Refocus on Ethereum Mainnet Amid Infrastructure Challenges

Synthetix has officially declared a strategic withdrawal from its Layer 2 deployment on the Base network, signaling a renewed concentration on the Ethereum mainnet. This phased exit will involve the cessation of all trading activities on Base and the systematic closure of liquidity provider (LP) vaults. The move aims to streamline operations amid persistent infrastructure challenges and liquidity dispersion issues that have impacted network efficiency. By consolidating its resources back to Ethereum’s primary layer, Synthetix intends to enhance platform stability and liquidity depth, addressing critical concerns that have hindered its Layer 2 performance. Market participants should anticipate a gradual transition as the protocol executes this plan, reflecting a broader industry trend of optimizing DeFi protocols for robustness and scalability on established blockchain networks.