Decentralized finance (DeFi) protocol Synthetix has taken a significant step forward in its ongoing revamp, announcing the acceptance of multiple token types as collateral for leveraged perpetuals trading on Coinbase’s Base network. This move is part of a broader effort to revitalize the DeFi protocol after a governance shakeup in October.
Multicollateral Perps Now Live on Base Network
Synthetix has successfully launched "multicollateral perps" on Base, one of Ethereum’s most popular layer 2 (L2) scaling networks. This innovation will allow users to post tokens such as Coinbase Wrapped BTC (cbBTC) and Coinbase Wrapped ETH (cbETH) as trading collateral. By expanding the range of accepted collaterals, Synthetix aims to provide traders with more flexibility and control over their margin positions.
Benefits of Multicollateral Perps
According to Synthetix, this development offers several benefits to users:
- Direct Exposure to Popular Crypto Assets: Traders can maintain direct exposure to popular crypto assets like BTC and staked ETH.
- More Control Over Margin Positions: Users will have more control over their margin positions and be able to easily access hedging opportunities.
- Easier Access to Hedging: This expansion enables traders to hedge against market fluctuations with ease.
Coinbase Wrapped Tokens Gain Popularity
Coinbase’s cbBTC has emerged as one of the most popular Bitcoin wrappers, boasting a market capitalization of over $2 billion as of December 18. According to CoinMarketCap, this growth is a testament to the increasing adoption of wrapped tokens in the crypto space.
Base Network: A Hub for Ethereum L2 Activity
With around $14 billion in total value locked (TVL), Base is the second most popular Ethereum L2 after Arbitrum, according to L2Beat. This impressive figure underscores the network’s popularity among DeFi users and its potential as a hub for Ethereum L2 activity.
Synthetix Exchange App Now Live
On December 18, Synthetix also launched its own perpetuals exchange application, marking another significant milestone in the protocol’s ongoing revamp. By providing an in-house trading app, Synthetix aims to cater to the growing demand for decentralized derivatives products and exchanges.
Background: Governance Shakeup and Revamp
In October, tokenholders voted overwhelmingly in favor of a proposed governance shakeup after the protocol fell short of product delivery deadlines. This development led to the acquisition of perps platform Kwenta and leveraged token trading platform TLX. The reorganization as a foundation will streamline and improve capabilities regarding business activities that require signing contracts with partners.
Conclusion
Synthetix’s expansion of collateral options for leveraged perpetuals trading on Coinbase’s Base network is a significant step forward in its ongoing revamp. By providing users with more flexibility and control over their margin positions, Synthetix aims to enhance the overall DeFi experience. As the protocol continues to evolve and improve, it will be interesting to see how these developments impact the broader crypto landscape.
Synthetix’s Revamp: Key Takeaways
- Ongoing Revamp: Synthetix is undergoing a significant revamp after a governance shakeup in October.
- Expansion of Collateral Options: The protocol now accepts multiple token types as collateral for leveraged perpetuals trading on Coinbase’s Base network.
- Launch of Multicollateral Perps: This innovation will provide users with more flexibility and control over their margin positions.
- Synthetix Exchange App: The protocol has launched its own perpetuals exchange application, marking another significant milestone in its ongoing revamp.
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- Lawmakers’ Fear and Doubt Drives Proposed Crypto Regulations in US
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