Synthetix Will Transition To Synthetix V3 This June, Introducing New Foundation And Architecture For Its Protocol
In Brief
Synthetix plans to rollout V3 and migrate migrate SNX from the Ethereum mainnet in June, followed by the Optimism migration.
Decentralized synthetic asset protocol Synthetix (SNX) announced its plan to move forward with the V3 rollout, which will involve the migration of SNX and sUSD. The process will begin with the migration of SNX from the Ethereum mainnet to V3 in June, followed by the V3 deployment on Optimism.
V3 transition will enable the generation and distribution of real yield from trading fees to liquidity providers. Additionally, it will introduce a buyback and burn mechanism, which uses transaction fees to purchase and burn SNX tokens.
The transition to V3 will introduce significant changes, including the ability to accelerate real yield by replacing inflationary SNX rewards with real yield derived from trading fees and a buyback or burn mechanism to reduce the SNX supply. Additionally, sUSD will be collateralized with the stablecoin backed by assets such as SNX, ETH, USDC, and yield-generating collateral, enhancing scalability. Furthermore, V3 will simplify liquidity provision with a delta-neutral design for Synthetix Perps and Spot Markets, making participation more accessible.
Starting next week, several supportive initiatives will be implemented. This encompasses sUSD rewards on Velodrome, offering an additional 10,000 OP tokens per week for sUSD or USDC liquidity. Additionally, there will be extra 20,000 SNX incentives for sUSD liquidity pools on Curve.
Synthetix Launches Infinex To Unify Decentralized Finance Applications Into Single Interface
Synthetix is a decentralized finance (DeFi) platform offering liquidity for various permissionless derivatives, including perpetual futures, options, and parimutuel markets, available across Ethereum Virtual Machine (EVM) compatible chains.
Recently, Synthetix co-founder Kain Warwick launched Infinex, a front-end platform designed to unify decentralized finance applications into a single user-friendly interface. Infinex will be able to operate alongside Synthetix, which currently has nearly $500 million in locked deposits and will initially support six blockchains, encompassing Ethereum, Solana, Polygon, Arbitrum, Optimism, and Base.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
