Syntex bet on new ‘multi-guarantee’ before arbitrage release
Synthetix is betting that its ability to accept different tokens as collateral will set the v3 derivatives platform apart when it launches in arbitrage's competitive decentralized finance (DeFi) ecosystem, Synthex core contributor Matt Losquadro told Cointelegraph.
“Arbitrum is the home of DeFi derivatives. There is no doubt about that. There are a large number of protocols out there; [and] The competition is tough,” Losquadro said. The big question is ‘Why use Synthetix Perps in a crowded marketplace like Arbitrum?' It was.
“Arbittrum is about to launch a unique product feature… [and] This feature is multi-guaranteed,” Losquadro said. “There's nobody on Arbitrum right now, and it's going to be a huge opening.”
Syntex launched on Arbitrum in July. Source: Synthetix
Related: Synthetix to add Chainlink when v3 exchange launches on Arbitrum
Synthetix is a unique DeFi protocol that offers “permissionless derivatives such as sustainable futures, options” and more on blockchain networks, including Ethereum, Optimism and Base. The protocol was launched on Arbitrum in July.
Fixed futures, or “perps,” are a type of derivative that allows traders to buy or sell an asset in the future with no expiration date. On Arbitrum, DeFi protocol GMX currently has a decentralized perps market with a total value of more than $430 million locked up (TVL), according to data obtained by Defillama.
Several applications built on Synthetix focus on per-purpose marketing, while others focus on product strategies, such as Basic Transactions, Losquadro. Marginalization allows users to deposit multiple types of tokens, which opens up even more opportunities, he added.
“Instead of showing only faults [USD Coin (USDC)] Or whatever stable coin, when using Synthetix perps on Arbitrum, at [Ether] And so is Bitcoin,” Losquadro said.
Synthetix also plans to integrate Chainlink data streams with the upcoming v3 deployment on Arbitrum.
“So, yes, initially, I think this multi-stakeholder feature will be a way to compete with Arbitrum DeFi protocols like GMX,” Losquadro said. But “it's not just about the eternal future. It's actually allowing people to build on this system in a structured and unlicensed way.
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