Synthetix to go head-to-head with dYdX, Aevo with new DEX proposal

Synthetix-powered exchange Infinex plans to drive revenue to SNX stakers

article-image

LorenzoPeg/Shutterstock modified by Blockworks

share

Synthetix, one of crypto’s DeFi originals, is poised to add to its affiliated product suite.

Founder Kain Warwick announced plans for a new derivatives front-end to its decentralized trading infrastructure, dubbed Infinex.

The new exchange will be aimed at inexperienced and advanced traders alike, but with features that match those found on centralized exchanges including a non-custodial central limit order book.

Synthetix already has a derivatives DEX on Optimism, called Kwenta, but Warwick identified three main problems with the existing offering. For example, to get started, traders must first bridge assets to the layer-2 rollup, swap for sUSD — Synthetix’s own stablecoin, which is used as margin collateral.

Worst of all for those used to a centralized exchange experience, each order or cancellation must be signed by the trader’s wallet, paying a small fee in the process.

“The objective is to erase any doubts about whether decentralized Perps can compete directly with CEXs,” Warwick wrote in a Friday blog post.

There are benefits to being on a non-custodial decentralized exchange, and Warwick pokes fun in the post at the now-defunct FTX and other centralized exchanges for their unique counterparty risks. FTX collapsed last fall in dramatic fashion. 

“It’s become increasingly clear that the impediments to Synthetix Perps growth can be resolved, but this will require a new approach,” he opined. “It requires Infinex.”

The proposed DEX will be tailored to meet the expectations of traders who use venues like Binance, requiring only a username and password to access, while remaining non-custodial.

“Infinex generates a new public-private key pair for each user and stores it client-side in the browser,” Warwick wrote, noting the key would only be used for signing trade orders, not to withdraw funds.

The technical implementation details of the DEX were not disclosed. Warwick indicated in an AMA on the Synthetix Discord that they were left to Synthetix’s core developers.

New upstart Aevo uses an optimistic rollup based on the OP stack for its off-chain CLOB. Market leader dYdX currently employs a Starkware StarkEx rollup but will soon migrate to a Cosmos-based sovereign app chain.

Synthetix’s new DEX will be governed by holders of Synthetix’s native token, SNX, and will not require its own token, Warwick said on Discord. But its revenues will be used to accumulate SNX.

“Infinex aspires to become the single largest LP in the Synthetix ecosystem,” he wrote.

As of the time of publication, SNX’s price has jumped 32%.

The launch of the new project is anticipated to coincide with version 3 of Synthetix’s perpetual futures trading system. That new version is expected to be launched in the coming months.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Screenshot 2024-05-23 091855.png

Research

Bitcoin L2s aim to boost scalability while preserving decentralization and security, unlocking a better user experience, and new avenues for Bitcoin-powered innovations. However, no existing Bitcoin L2 leverages the full security of Bitcoin.

article-image

Sponsored

As part of the #Breakout2024 plans, Radix has introduced Token Trek

article-image

House members ask Gensler to keep a “consistent and equitable approach” with ether ETF proposals after the agency approved spot bitcoin ETFs in January

article-image

Using old-world instruments to address crypto user experience challenges goes against what this industry set out to do

article-image

And, weeks of a potential crypto ETF decision are no stranger to chaos

article-image

The FIT21 Act marks the second crypto-focused piece of legislation to advance in Congress this month

article-image

More than half of Solana transactions fail