Synthetix Unveils Third Version of Protocol on Base

The DeFi platform for synthetic assets, Synthetix, has launched the third version of its perpetual derivatives protocol on the Ethereum layer-two network, Base.

Derivatives protocol @synthetix_io has launched a perpetuals exchange on @base?

Perps V3 gives traders the option of using USDC as collateral.

Read more:https://t.co/cpGZrJZUiM pic.twitter.com/cXOvbNJ1XG

— The Defiant (@DefiantNews) January 24, 2024

Perps v3 offers several advantages, including the ability to use the stablecoin USDC as collateral for margin trading. Previously, users could only use the platform’s internal stablecoin, sUSD, for this purpose.

“Experiments with popular assets like USDC significantly expand Synthetix’s capabilities to attract new collateral and launch fresh derivative markets,” commented a developer known as cavalier.

With the launch of Perps v3, projects on Base gain tools from Synthetix-based protocols such as Polynomial, Kwenta, and DHEDGE to create their own DeFi solutions.

Additionally, the decentralized options exchange Infinex from the platform’s ecosystem will be launched on Coinbase’s L2 network.

According to DeFi Llama, the total value locked in Base assets amounts to $380 million. 

The corresponding figure for Synthetix is $636 million, with nearly all of the volume concentrated on Ethereum and Optimism. The team deployed the third version of the protocol in these networks in February 2023.

In December, the Synthetix community supported the SIP 2043 improvement proposal, which provides for the cessation of inflation of the native SNX token. Project founder Kain Warwick brought the idea up for discussion back in August 2022.