Synthetix Announces Expansion of Multi-Collateral Perps on Coinbase’s Base Network
In a move aimed at enhancing user experience and increasing flexibility, decentralized finance (DeFi) protocol Synthetix has begun accepting multiple token types as collateral for leveraged perpetuals trading on Coinbase’s Base network. This development was announced by Synthetix on December 18, marking the latest step in the protocol’s broader revamp following a governance shakeup in October.
What are Multi-Collateral Perps?
The introduction of "multicollateral perps" on Base, one of Ethereum’s most popular layer 2 (L2) scaling networks, will enable users to post tokens such as Coinbase Wrapped BTC (cbBTC) and Coinbase Wrapped ETH (cbETH) as trading collateral. This expansion allows traders to maintain direct exposure to popular crypto assets like Bitcoin and staked Ether while providing more control over margin positions and easier access to hedging.
Benefits of Multi-Collateral Perps
According to Synthetix, the addition of multi-collateral perps will offer several benefits to users. These include:
- Increased flexibility: With multiple token types available as collateral, traders can choose the most suitable option for their needs.
- Improved control over margin positions: By allowing users to post different tokens as collateral, Synthetix Exchange aims to provide a more streamlined and efficient trading experience.
- Easier access to hedging: The introduction of multi-collateral perps will enable traders to hedge their positions with greater ease, reducing the risk associated with market volatility.
Coinbase’s cbBTC: A Popular Wrapper for Bitcoin
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 underscores the growing demand for wrapped tokens and highlights the importance of integrating these assets into DeFi protocols.
Base Network: A Hub for Ethereum L2 Scaling
With around $14 billion in total value locked (TVL), Base is the second most popular Ethereum L2 after Arbitrum, according to L2Beat. This indicates a significant interest in layer 2 scaling solutions and highlights the potential for further growth in this space.
Synthetix Exchange: A New Flagship Product
In addition to launching multi-collateral perps on Base, Synthetix also introduced its own perpetuals exchange application on December 18. This marks a significant milestone for the protocol, which previously provided smart contract infrastructure for other exchanges to build upon but lacked an in-house trading app.
Perpetual Futures: Derivatives for a Risk-Averse Market
Perpetual futures, or "perps," are derivatives that allow traders to buy or sell an asset at a future date with no expiration. This feature is particularly appealing to risk-averse market participants, who can use perps to hedge their positions and manage potential losses.
Synthetix’s Ongoing Revamp
The introduction of multi-collateral perps on Base is part of Synthetix’s broader revamp following a governance shakeup in October. This overhaul aims to improve the protocol’s governance and day-to-day operations, streamline its business activities, and enhance its overall capabilities.
A New Era for DeFi: Increased Flexibility and Accessibility
The expansion of multi-collateral perps on Base marks an important milestone for Synthetix and the broader DeFi ecosystem. By increasing flexibility and accessibility, this development has the potential to attract new users and further establish DeFi as a leading force in the crypto space.
Synthetix’s Revamp: A Governance Shake-Up
In October, Synthetix token holders voted overwhelmingly in favor of a proposed governance shake-up after the protocol fell short of product delivery deadlines. This initiative aims to completely overhaul and improve the governance and day-to-day operations of Synthetix.
Key Takeaways
- Synthetix has expanded its collateral options for leveraged perpetuals trading on Coinbase’s Base network.
- The introduction of multi-collateral perps will allow users to post tokens such as cbBTC and cbETH as trading collateral.
- This expansion offers increased flexibility, improved control over margin positions, and easier access to hedging.
- Synthetix Exchange is now a flagship product, offering an in-house perpetuals exchange application.
- The protocol’s ongoing revamp aims to improve governance and day-to-day operations.
Conclusion
The introduction of multi-collateral perps on Base marks a significant development for Synthetix and the DeFi ecosystem. By increasing flexibility and accessibility, this expansion has the potential to attract new users and further establish DeFi as a leading force in the crypto space.