Synthetix Expands Multi-Collateral Perpetuals on Coinbase’s Base Network
Decentralized finance (DeFi) protocol Synthetix has begun accepting multiple token types as collateral for leveraged perpetuals trading on Coinbase’s Base network, as announced on December 18. This new feature, called “multicollateral perps,” is part of a broader revamp of the DeFi protocol following a governance shakeup in October.
What Are Multi-Collateral Perps?
Launching multicollateral perps on Base, one of Ethereum’s most popular Layer 2 (L2) scaling networks, marks a significant upgrade to the Synthetix platform. This update allows users to post a variety of tokens as collateral, such as:
- Coinbase Wrapped BTC (cbBTC)
- Coinbase Wrapped ETH (cbETH)
Synthetix explained that this expansion of collateral options provides traders with direct exposure to popular crypto assets like Bitcoin (BTC) and staked Ethereum (ETH), giving them more control over margin positions and enhanced access to hedging opportunities.
Benefits of Multi-Collateral Perps
By adding multi-collateral perps, Synthetix aims to offer several benefits for traders, including:
- Maintaining direct exposure to high-demand assets like BTC and staked ETH.
- Greater control over margin positions.
- Improved access to hedging opportunities.
Coinbase’s cbBTC has become one of the most popular Bitcoin wrappers, boasting a market capitalization of over $2 billion as of December 18, according to CoinMarketCap.
Base Network’s Growing Popularity
With around $14 billion in total value locked (TVL), Base is now the second most popular Ethereum Layer 2 network after Arbitrum, according to L2Beat. Its expanding ecosystem is driving further adoption of Synthetix’s new multicollateral perpetuals trading feature.
Launch of Synthetix’s New Perps Exchange
On December 18, Synthetix also unveiled its own perpetuals exchange application. While the protocol previously provided smart contract infrastructure for other exchanges, it lacked an in-house trading app. This new exchange will become a key product in Synthetix’s ongoing development.
The protocol stated, “Synthetix will continue to support and welcome builders of derivatives products and exchanges. Synthetix Exchange will become one of our new flagship products.” Perpetual futures, or “perps,” are derivatives that allow traders to buy or sell an asset at a future date without an expiration.
Synthetix’s Governance Overhaul
In October, Synthetix tokenholders voted overwhelmingly to approve a governance shakeup after the protocol missed product delivery deadlines. This came after a proposal from Benjamin Celermajer, a longtime SNX investor, to “completely overhaul” and improve Synthetix’s governance and daily operations.
As part of this revamp, Synthetix acquired the perps platform Kwenta and the leveraged token trading platform TLX. The protocol is also reorganizing as a foundation to improve its business activities, including signing contracts with partners.
SNAXchain and Cross-Chain Liquidity
In addition to these developments, Synthetix launched SNAXchain in September, an app chain designed to bring cross-chain liquidity and trading-fee revenues to native-token stakers and on-chain trading products.
With these initiatives, Synthetix is positioning itself as a major player in the DeFi space, expanding its offerings and improving its governance structure to better serve the crypto community.
Ecosystem
Research
News Network
About