Synthetix launches multi-collateral perps on Base amid revamp

Decentralized finance (DeFi) protocol Synthetix has begun accepting multiple token types as collateral for leveraged perpetuals trading on Coinbase’s Base network, Synthetix said on Dec. 18. 

Launching so-called “multicollateral perps” on Base, one of Ethereum’s most popular layer 2 (L2) scaling networks, is part of a broader revamp of the DeFi protocol after a governance shakeup in October. 

Adding multi-collateral perps will allow users to post tokens such as Coinbase Wrapped BTC (cbBTC) and Coinbase Wrapped ETH (cbETH) as trading collateral, Synthetix said.

“This collateral expansion lets traders maintain direct exposure to popular crypto assets like BTC and staked ETH […] and gives them more control over margin positions and easier access to hedging,” among other benefits, Synthetix said in a statement.

Coinbase’s cbBTC has emerged as one of the most popular Bitcoin wrappers, with a market capitalization of more than $2 billion as of Dec. 18, according to CoinMarketCap.

With around $14 billion in total value locked (TVL), Base is the second most popular Ethereum L2 after Arbitrum, according to L2Beat.

Source: Synthetix

Related: Synthetix, Kwenta launch v3 perpetuals on Arbitrum

New perps exchange

On Dec. 18, Synthetix also launched its own perpetuals exchange application, the protocol said. It previously provided smart contract infrastructure for other exchanges to build on but lacked an in-house trading app.

“Synthetix will continue to support and welcome builders of derivatives products and exchanges, Synthetix Exchange will become one of our new flagship products,” the protocol said. 

Perpetual futures, or “perps,” are derivatives that let traders buy or sell an asset at a future date with no expiration.

Synthetix Exchange app interface. Source: Synthetix

Ongoing revamp

In October, Synthetix tokenholders voted overwhelmingly in favor of a proposed governance shakeup after the protocol fell short of product delivery deadlines.

In a Sept. 25 governance proposal, Benjamin Celermajer, a longtime SNX investor, outlined a plan to “completely overhaul” and improve the governance and day-to-day operations of Synthetix. 

Synthetix subsequently acquired perps platform Kwenta and leveraged token trading platform TLX.

It is also reorganizing as a foundation to “streamline and improve our capabilities regarding business activities that require signing contracts with partners,” among other potential benefits, Synthetix said in an October blog post. 

In September, Synthetix launched a new app chain — SNAXchain — aimed at bringing crosschain liquidity and trading-fee revenues to native-token stakers and onchain trading products.

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