- Synthetix founder Kain Warwick has introduced a decentralized cryptocurrency exchange called Infinex, which aims to compete with centralized exchanges.
- Infinex addresses common issues faced by DEXs, such as high slippage, low liquidity, high transaction fees, and market risks for liquidity providers.
- The exchange also aims to solve problems encountered on centralized exchanges, such as user funds being held hostage or used for unauthorized purposes.
Synthetix Founder Launches Decentralized Exchange Infinex
Synthetix founder Kain Warwick recently announced the beta launch of a decentralized cryptocurrency exchange called Infinex. The exchange aims to compete with centralized exchanges by offering solutions to common issues faced by both decentralized exchanges (DEXs) and centralized exchanges (CEXs).
Addressing DEX Issues
Infinex aims to address common issues faced by DEXs, such as high slippage, low liquidity, high transaction fees, and market risks for liquidity providers. These issues have often hindered the growth and adoption of DEXs. By providing solutions to these problems, Infinex aims to attract users and improve the overall trading experience.
One of the key features of Infinex is its ability to provide users with access to Optimism, a layer 2 scaling solution for Ethereum. This allows users to bypass the high gas fees and slow transaction times associated with the Ethereum network. Additionally, Infinex aims to simplify the process of acquiring sUSD, a stablecoin used within the Synthetix ecosystem, and streamline the transaction signing process.
Solving Centralized Exchange Problems
Infinex also aims to address issues commonly encountered on centralized exchanges. One of the main problems is the risk of insolvency, where user funds can be held hostage or used for purposes other than intended. By operating as a decentralized exchange, Infinex eliminates the risk of insolvency and ensures that user assets remain secure.
Warwick’s mention of FTX, a cryptocurrency exchange that faced insolvency issues in the past, suggests that Infinex aims to provide a more secure and reliable alternative to centralized exchanges.
User Experience and Revenue Model
Warwick emphasizes the importance of user experience and plans to prioritize it in the development of Infinex. The exchange aims to provide a user-friendly interface, allowing users to easily register with just a username and password.
Infinex also plans to implement a user referral system, which has proven to be effective in attracting new users. By incentivizing users to refer others to the platform, Infinex aims to expand its user base and increase trading volume.
The exchange’s revenue model is primarily based on transaction fees, which will be used to purchase SNX, the native token of the Synthetix ecosystem. Infinex aims to become the largest liquidity pool for SNX and contribute to the overall growth of the Synthetix network.
While an exact launch date for Infinex has not been provided, it is expected to enter the beta phase alongside the release of Perps V3, a major upgrade to the Synthetix protocol.
Following the announcement of Infinex, the price of SNX experienced a significant increase, rising from $2.52 to $3.29, representing a gain of over 30%. At the time of writing, SNX is trading at $2.77.
