Synthetix deploys first perpetuals protocol on Base blockchain

Synthetix, a decentralized crypto derivatives marketplace, has deployed V3 of its perpetuals contracts protocol on Base, an Ethereum Layer-2 blockchain developed by Coinbase.  

Perps V3 will simplify the launching of new derivatives products on Synthetix for developers building on Base, as well as trading on Synthetix-powered exchanges like Kwenta, Polynomial, and dHEDGE, the company said in a statement.

According to Synthetix, more products for Synthetix V3 are planned to be deployed on Base in the coming months, including a new perpetual futures exchange called Infinex. 

Decentralized crypto trading still has to catch up with activity on centralized platforms, Synthetix Founder Kain Warwick said. "The problem is, we're still using centralized infrastructure for most crypto transactions. Most crypto activity is not leveraging the decentralized technology we’ve built," he said. 

Perps V3 product was launched with the Synthetix V3 system upgrade, which has been in progress since late last year, the company said. According to Synthetix, the previous iteration of perpetuals V2, launched last January, has generated more than $43 billion in trading volume and attracted tens of thousands of unique traders. 

Liquidity providers

Perps V3 is designed to improve the experience for both traders and developers with alternative forms of collateral for liquidity providers including USDC, sUSD, sETH and sBTC. Previously, collateral could only be in Synthetix own token, SNX. 

New features also include cross margin capabilities, delegation of account permissions, improvements of the liquidation and settlement mechanisms.

“Eventually the end game for Synthetix could be to govern over, and earn fees from, a large and diverse range of collateral, across many chains,” Synthetix Core Contributor going by Cavalier said.