Synthetix, a well-known DeFi protocol for synthetic assets, has just announced the launch of version V3 on the layer-2 blockchain of Arbitrum.
The debut on the new cryptographic environment will be accompanied by the Kwenta trading platform, which will provide multi-collateral support and unlock new markets.
Synthethix has also organized an incentive campaign to encourage the flow of new users and liquidity providers.
Synthetix V3 and the launch on the Arbitrum L2 blockchain: a more complete DeFi ecosystem
Yesterday, the DeFi protocol Synthetix officially debuted on the Arbitrum blockchain by introducing the Kwenta perpetual trading platform.
Synthetix thus expands its multichain presence by adding a new crypto network to the already existing Ethereum, Base, Optimism.
The application, which acts as the backbone for derivative trading in DeFi, has brought version V3 to Arbitrum, providing new opportunities to its community.
The collaboration between the parties aims to create an efficient and high-performing DeFi experience, leveraging the technologies deployed.
On one hand, Synthetix is ready to provide high-performance perpetual swaps to Arbitrum users. On the other hand, the blockchain serves as an operational base for fast, secure, and low-cost operations, thanks to the layer-2 architecture built on Ethereum.
Finally, Kwenta collaborates thanks to its simple and intuitive interface that enables new trading tools.
With this launch, Synthetix is ready to explore new connections with the blockchain world and to expand its ecosystem.
In particular, it is expected that thanks to Arbitrum there could be a boost in trading volumes. Other similar opportunities, such as the recent integrations with Optimism and Base, have facilitated the exchange of 50 billion dollars in volume.
The scalability and popularity of the Arbitrum blockchain
The blockchain of Arbitrum represents the perfect place to enhance the DeFi of Synthetix by bringing synthetic assets to the EVM public.
The chain represents a layer-2 of Ethereum capable of handling a high throughput of operations at a low cost of associated fees.
Furthermore, it guarantees security and decentralization thanks to the support with the underlying main network that acts as settlement.
On the trading front, Arbitrum offers a welcoming environment for a fully on-chain composable perps exchange.
Inside it, we find a rich ecosystem of spot trading, perpetuals, options, products for volatility supported by a fast and secure rollup infrastructure.
This infrastructure also boasts a certain popularity in the crypto world, being the first L2 blockchain for TVL, as well as the most historical.
In total since its launch in 2021, it has attracted a whopping 2.35 billion dollars in locked capital, with volumes expanding year after year.
It is also worth highlighting the presence of a thriving stablecoin market, with 4.4 billion coins facilitating trading on multiple DeFi exchanges.
The entry of Synthetix on the chain therefore guarantees various advantages to the end user, significantly improving the interaction experience.
Multi-collateral support and launch of new markets
As mentioned, the inauguration of Synthetix V3 on the Arbitrum blockchain introducing multi-collateral support for DeFi operations.
Thanks to the partnership with Kwenta, Synthetix has managed to find a new balance between decentralization, flexibility, and reliability.
In previous versions of the protocol, traders had to use stablecoins (sUSD or USDC) as collateral.
Now, however, they can leverage a variety of crypto resources for exposure in trading activities, with a multi-collateral approach.
The new system enables unique advantages for users, who can operate by managing different guarantees simultaneously.
Traders can take advantage of the value in USD of these types of assets, without losing exposure, by settling trades in stablecoin.
Or they can use volatile products, for a more complex and potentially rewarding DeFi experience.
More specifically, the new options include:
- tBTC: a wrapped version of Bitcoin tradable on EVM chains.
- WETH: wrapped erc20 version of ETH
- USDe: synthetic dollar of Ethena
- USDx : synthetic dollar of Synthetix on Arbitrum
It is important to highlight how all orders on Kwenta are settled in USDx, a true bull of Synthetix on the new blockchain.
Trading on Kwenta also unlocks new markets where traders can discover new opportunities. In total, the DeFi application introduces 81 new derivatives trading exchanges, offering greater freedom of maneuver.
Among the most well-known assets we find: LINK, ARB, DOGE; PEPE, SHIB, AAVE, OP, ADA, BNB, UNI, and many others.
Kwenta also enables gas-free operations with 1-click, eliminating the hassle of managing gas fees and confirmations. This feature allows seamless market orders without extra transactions or wallet popups
New incentives for traders and liquidity providers on Synthethix
Finally, we cannot fail to mention the incentives launched by Synthethix to support new DeFi activities on the Arbitrum blockchain.
After yesterday’s launch, the synthetic asset protocol announced a reward program for traders and liquidity providers.
In particular, traders can now benefit from a reduction in buyer fees for a period of two weeks.
The providers of liquidity will instead see an increase in APY while the treasury allocates the rewards from trading fees to a one-month promotion.
The initiative was launched as soon as the group’s DAO gathered around the governance proposal SCCP-351, voting in its favor.
To participate, you only need to visit Kwenta and trade on the V3 Perps for Arbitrum, if you only intend to do buying and selling operations. If you want to act as an LP and get a boost in rewards, you need to go to this site and deposit collateral in any pool on the Arbitrum blockchain.
