Synthetix V3 Debuts on Arbitrum L2 Blockchain: A More Complete DeFi Ecosystem

Yesterday, the DeFi protocol Synthetix officially debuted on the Arbitrum blockchain by introducing the Kwenta perpetual trading platform.

DeFi protocol Synthetix has announced the launch of its V3 on Arbitrum L2 blockchain, bringing synthetic assets to the EVM public.

The debut on the new crypto network will be accompanied by the Kwenta trading platform, introducing multi-collateral support and unlocking new markets.

Together, they aim to enhance the DeFi ecosystem, offering a more complete and efficient experience.

The launch of Synthetix V3 on Arbitrum L2 blockchain marks a new chapter for the DeFi protocol, expanding its multichain presence and offering new opportunities to its community.

The collaboration between Synthetix, Kwenta, and Arbitrum aims to create a seamless and high-performing DeFi experience, leveraging the strengths of each technology.

On one hand, Synthetix will provide high-performance perpetual swaps to Arbitrum users. On the other hand, the blockchain serves as an operational base for fast, secure, and low-cost operations, thanks to the layer-2 architecture built on Ethereum.

Finally, Kwenta collaborates thanks to its simple and intuitive interface that enables new trading tools.

With this launch, Synthetix is ready to explore new connections with the blockchain world and to expand its ecosystem.

In particular, it is expected that thanks to Arbitrum there could be a boost in trading volumes. Other similar opportunities, such as the recent integrations with Optimism and Base, have facilitated the exchange of 50 billion dollars in volume.

The Arbitrum blockchain boasts scalability and popularity, making it a suitable choice for enhancing the DeFi offering of Synthetix.

The blockchain is a layer-2 of Ethereum that can handle a high throughput of operations at a low cost of associated fees.

Furthermore, it guarantees security and decentralization thanks to the support with the underlying main network that acts as settlement.

On the trading front, Arbitrum offers a welcoming environment for a fully on-chain composable perps exchange.

Inside it, we find a rich ecosystem of spot trading, perpetuals, options, products for volatility supported by a fast and secure rollup infrastructure.

This infrastructure also boasts a certain popularity in the crypto world, being the first L2 blockchain for TVL, as well as the most historical.

In total since its launch in 2021, it has attracted a whopping 2.35 billion dollars in locked capital, with volumes expanding year after year.

It is also worth highlighting the presence of a thriving stablecoin market, with 4.4 billion coins facilitating trading on multiple DeFi exchanges.

The entry of Synthetix on the chain therefore guarantees various advantages to the end user, significantly improving the interaction experience.

The inauguration of Synthetix V3 on the Arbitrum blockchain introduces multi-collateral support for DeFi operations.

Thanks to the partnership with Kwenta, Synthetix has managed to find a new balance between decentralization, flexibility, and reliability.

In previous versions of the protocol, traders had to use stablecoins (sUSD or USDC) as collateral.

Now, however, they can leverage a variety of crypto resources for exposure in trading activities, with a multi-collateral approach.

The new system enables unique advantages for users, who can operate by managing different guarantees simultaneously.

Traders can take advantage of the value in USD of these types of assets, without losing exposure, by settling trades in stablecoin.

Or they can use volatile products, for a more complex and potentially rewarding DeFi experience.

More specifically, the new options include:

It is important to highlight how all orders on Kwenta are settled in USDx, a true bull of Synthetix on the new blockchain.

Trading on Kwenta also unlocks new markets where traders can discover new opportunities. In total, the DeFi application introduces 81 new derivatives trading exchanges, offering greater freedom of maneuver.

Among the most well-known assets we find: LINK, ARB, DOGE; PEPE, SHIB, AAVE, OP, ADA, BNB, UNI, and many others.

Kwenta also enables gas-free operations with 1-click, eliminating the hassle of managing gas fees and confirmations. This feature allows seamless market orders without extra transactions or wallet popups

Finally, we cannot fail to mention the incentives launched by Synthetix to support new DeFi activities on the Arbitrum blockchain.

After yesterday’s launch, the synthetic asset protocol announced a reward program for traders and liquidity providers.

In particular, traders can now benefit from a reduction in buyer fees for a period of two weeks.

The providers of liquidity will instead see an increase in APY while the treasury allocates the rewards from trading fees to a one-month promotion.

The initiative was launched as soon as the group’s DAO gathered around the governance proposal SCCP-351, voting in its favor.

To participate, you only need to visit Kwenta and trade on the V3 Perps for Arbitrum, if you only intend to do buying and selling operations. If you want to act as an LP