Synthetix Shifts Focus to Coinbase's Base Network Amid Arbitrum Perps Markets Transition to Close-Only Mode

Synthetix has shifted its focus from Arbitrum to Coinbase's Base network to enhance liquidity and operational efficiency. The decision to sunset perpetual futures trading on Arbitrum and transition to a close-only mode aims to streamline offerings and maximize returns for traders on a single platform. Synthetix is purchasing USDx to maintain stability during the transition and managing liquidity through its Treasury to sustain trading volumes. The project aims to integrate various ecosystem projects into a unified platform, positioning itself to deliver greater value to users.

Synthetix, a decentralized finance (DeFi) protocol known for providing liquidity for decentralized exchanges (DEXs), has recently announced its decision to shift its focus from Arbitrum to Coinbase's Base network [1]. This move aims to enhance liquidity and operational efficiency for the project.

The transition comes after Synthetix's v3 liquidity platform launch on Arbitrum in October [1]. Despite the successful launch, the DeFi protocol faced delays in product delivery, prompting a governance overhaul [1]. With the competitive DeFi ecosystem on Arbitrum [1], Synthetix aims to differentiate itself by accepting multiple token types as trading collateral on the Base network.

Synthetix's decision to sunset perpetual futures trading on Arbitrium and transition to a close-only mode is part of an effort to streamline offerings and maximize returns for traders on a single platform [1]. The project is also purchasing USDx to maintain stability during the transition and managing liquidity through its Treasury to sustain trading volumes [1].

The integration of various ecosystem projects into a unified platform is a key component of Synthetix's strategy [1]. By positioning itself in the growing DeFi ecosystem on Coinbase Base, Synthetix aims to deliver greater value to users.

Arbitrum, with its $2.3 billion total value locked (TVL) [1], has been a hub for DeFi activity. However, the competition is fierce, with DeFi protocol GMX currently dominating Arbitrum's decentralized perps market with nearly $390 million in TVL [1]. Synthetix's move to Coinbase Base aims to capitalize on the growing potential of the network.

References:

[1] Cointelegraph. (2022, October 24). Synthetix Kwenta launch v3 perpetuals on Arbitrum. https://cointelegraph.com/news/synthetix-kwenta-launch-v3-perpetuals-arbitrum