New syntex app chain purpose cross-chain liquid for SNX staking, perps
Synthetix has launched a new application chain – SNAXchain – that aims to bring cross-chain liquidity and transaction fee revenues to native-token stakeholders and onchain trading products, Matt Losquadro, a Synthex core contributor, told Cointelegraph on September 6.
AppChain will initially serve as an onchain management platform to manage deployments of Syntex, including Optimisim, Arbitrum, and Base, on the Ethereum mainnet and Layer-2 (L2) blockchains, according to a September 4 post on the X forum.
SNAXchain is designed to “enable an independent center for management and protocol decisions, especially as Synthetix expands to additional chains and L2s,” Losquadro told Cointelegraph.
However, Synthetix is actively exploring “future functionality for SNAXchain, including SNX staking, cross-chain liquidity, and custom-built Perps products,” Losquadro said. “Look for more ideas around these features in Q4.”
The long-term goal of the protocol is to launch SNX (SNX) stake on the SNAXchain and share liquidity across multiple L2s using Optimism's Superchain, Losquadro added.
Syntex liquid pools on Arbitrum. Source: Synthetix
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SNAXchain runs on Optimism's Superchain – an interconnected layer 2s network built on Optimism's technology stack – and uses the interoperable platforms Conduit and Wormhole to cross-chain messages.
Synthetix is a decentralized finance (DeFi) protocol, focused on providing “alternatives to permissionless derivatives as perpetual futures.” It was launched on Arbitrum – Ethereum's leading Layer-2 platform for DeFi – in July.
Fixed futures or “perps” are derivatives that allow traders to buy or sell an asset in the future with no expiration date. The DeFi protocol GMX currently dominates the arbitrage-based Decentralized Perps Market. According to Defilama, more than $450 million has been locked in for a total price.
Syntex is betting that its ability to accept different tokens as collateral will set it apart in the arbitrage-competitive Diffie ecosystem, Losquadro told Cointelegraph in August.
According to its website, the DeFi derivatives platform currently accepts bonds including Enclosed Ether (WETH), USD Coin (USDC) and Arbitrage's native token, ARB (ARB). For liquidity providers, in the form of SNX incentives, it ranges from 7% to nearly 16%.
On September 4, GMX launched a series of products – called GMX Liquidity Vaults – designed to improve capital efficiency for its liquidity providers, in a post on the X platform.
Magazine: Syntex founder Cain Warwick: It's DeFi, not the market.
