Synthetix sunsets v3 perps on Arbitrum to focus solely on Base

Quick Take

  • Synthetix has set its perpetual markets on Arbitrum to close-only mode, meaning traders can no longer open new positions or increase existing ones.
  • The move is part of a strategic pivot by Synthetix to consolidate its operations and focus on Coinbase’s Base network.

Synthetix said its perps markets on Arbitrum have been sunset and set to close-only mode, where traders can no longer open new positions or increase existing ones.

This is due to Synthetix’s strategic pivot to consolidate operations and focus on a single network — Coinbase’s Base network. 

This comes with the sunset of Arbitrum’s USDx, which is essential for perps trading on Arbitrum and will be managed by the Synthetix Treasury. The Treasury has begun purchasing USDx from the market and funding a wrapper for stability and liquidity.

“This decision follows the sharp pivot in Synthetix’s product strategy to vertically integrate rather than exist solely as a platform,” the project noted.

Synthetix Perps is a decentralized perpetual futures trading platform built on the Synthetix protocol, allowing users to trade various synthetic cryptocurrencies with leverage. Its version 3 operates on Base and Arbitrum — Layer 2 optimistic rollups on Ethereum.

Last month, Synthetix v3 recorded a monthly volume of $274 million on Base, while its Arbitrum V3 deployment saw $86.2 million during the same period. 

Synthetix has asked liquidity providers on its Arbitrum platform to migrate their positions to Base, where additional incentives will be offered for a limited time.

Existing positions will remain active on Arbitrum during its deprecation process, and traders can close or reduce them anytime.

The project noted that it is also integrating acquired ecosystem projects, such as Kwenta and TLX, into a unified native trading platform.


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About Author

Vishal Chawla is The Block’s Crypto Ecosystems Editor and has spent over seven years covering tech protocols, cybersecurity, artificial intelligence and cloud computing. Vishal can be reached on Twitter at @vishal4c and via email at [email protected]

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