Synthetix Returns to Ethereum Mainnet, Relaunching Perpetual DEX

Decentralized derivatives protocol Synthetix has officially relaunched its perpetual futures decentralized exchange (DEX) on the Ethereum mainnet, marking a significant return after a two-year hiatus on Layer-2 networks. This move signals confidence in Ethereum's scaling capabilities and aims to leverage the network's deep liquidity for high-frequency trading.

Key Takeaways

• Synthetix relaunches its perpetual DEX on Ethereum mainnet.

• The new DEX utilizes a hybrid onchain-offchain order matching system.

• Initial offerings include Bitcoin, Ethereum, and Solana derivatives with up to 50x leverage.

• The protocol aims to capitalize on Ethereum's liquidity and scaling improvements.

A Strategic Return to Ethereum Mainnet

Synthetix initially migrated away from Ethereum's mainnet in 2022 due to high gas fees and network congestion, opting for Layer-2 solutions like Optimism, Arbitrum, and Base. However, recent scaling upgrades and reduced gas prices on Ethereum have prompted the protocol to bring its core trading product back to Layer-1. Synthetix founder Kain Warwick stated that Ethereum's mainnet is now capable of supporting complex financial applications, making it the "best place to run a perp DEX."

Hybrid Order Matching System

To address potential latency and gas fee issues, the new Synthetix perpetual DEX employs a hybrid Central Limit Order Book (CLOB) system. This approach involves offchain order matching for speed and efficiency, while trades are executed and settled onchain. This allows user funds to remain on Ethereum, offering the benefits of Layer-1 custody and settlement without compromising trading performance. The DEX is supported by the Synthetix Liquidity Provider (SLP) vault, which acts as the market-making engine, allowing sUSD holders to earn yield by providing liquidity.

Initial Offerings and Future Plans

The relaunch commenced with a private beta, initially granting access to 500 selected users, including contributors, stakers, and experienced traders. The platform currently supports derivatives for Bitcoin, Ethereum, and Solana, offering leverage of up to 50x, which is higher than many competing platforms. Users are capped at 40,000 USDT in deposits during the beta phase, with withdrawals expected to be enabled after a week of monitoring.

Synthetix has outlined an ambitious roadmap for the coming months and years, planning to introduce new markets weekly, increase leverage limits, and expand deposit caps. Future enhancements will include multi-collateral margin, real-world asset (RWA) support, incentive programs, and deeper integrations with the broader Ethereum DeFi ecosystem, with expansion plans extending through 2026.

Sources

• Synthetix Unveils Perpetual DEX on Ethereum Mainnet, The Defiant.

• Synthetix returns to Ethereum mainnet after 3 years: ‘We can run it back’ — TradingView News, TradingView — Track All Markets.

• Synthetix returns to Ethereum mainnet after 2022 exit, crypto.news.