As a seasoned researcher with years of experience in the ever-evolving world of cryptocurrencies and blockchain technology, I find myself intrigued by the latest developments in Synthetix’s SNAXChain launch on Optimism’s Superchain infrastructure. This move signifies a strategic step towards enhancing efficiency, scalability, and cost-effectiveness for DeFi enthusiasts interested in synthetic assets trading.
In a recent blog post dated September 4, 2024, the decentralized finance protocol Synthetix (SNX) announced plans to launch its own application blockchain, which they’ve named SNAXChain.
Synthetix SNAXChain To Launch On Optimism’s Superchain Infrastructure
As an analyst, I’m excited to announce that Synthetix, the Ethereum-based derivatives liquidity platform, is preparing to launch a new application blockchain – SNAXChain. This innovative development leverages Optimism’s Superchain infrastructure.
In simpler terms, for those new to this, Optimism’s Superchain on the Ethereum layer-2 (L2) is essentially a group of L2 networks, called OP chains. These networks have shared security mechanisms, communication channels, and are driven by an open-source technology system.
In the Superchain system, decision-making and management are handled by the Optimism Collective, a self-governing body known as a Decentralized Autonomous Organization (DAO). Currently, Base, Lyra, Mode, Zora are part of the OP chains family, while SNAXChain is expected to be added to this list in the future.
As a crypto investor, I’m excited about the upcoming launch of SNAXChain, as it promises to enhance the protocol’s efficiency and scalability. This means smoother and more cost-effective interactions for DeFi enthusiasts like me who are interested in creating and trading synthetic assets. Moreover, SNAXChain is designed to increase Synthetix’s liquidity, ensuring that it can meet the growing demand for synthetic assets in the market.
The Synthetix team points out that SNAXChain serves as an impartial platform for governing on-chain matters and making protocol decisions. Simultaneously, the protocol is expected to grow and integrate with more blockchain networks and layer 2 solutions.
Significantly, Synthetix collaborates with Conduit for handling its blockchain infrastructure, while also working with Wormhole to facilitate cross-chain communication between SNAXChain, Optimism, and the Ethereum mainnet.
Synthetix is initiating a fresh era of governance in conjunction with the debut of its new application blockchain. As stated in the official announcement, anyone or any group can put themselves forward to be part of different governance bodies within SNAXChain.
To use Ethereum (ETH) in the Synthetix governance system, a minimal amount of ETH needs to be transferred to the designated chain for transaction fees, or gas. Once this transfer, or bridging, is complete, potential candidates can link their digital wallets to the Synthetix governance application and submit their nomination for the council. Voting for the Synthetix governance council is set to commence on September 6, 2024.
Can DeFi Make A Comeback?
Although the Ethereum DeFi sector is swiftly advancing with new layer-2 technologies like Optimism and Arbitrum, it hasn’t yet gained the same level of traction as it did during the ‘DeFi summer’ of 2020.
Looking at current blockchain developments, it seems there might be a resurgence of DeFi later in the year. For example, early this year, Optimism saw increased network activities leading to a 9% increase in its OP token’s value. With further expansion across multiple chains, user engagement could continue to grow.
In a similar vein, the well-known decentralized exchange (DEX), Uniswap, has amassed a total income of $50 million, implying that the underestimation of its UNI token’s worth could be significant, given it is currently 86% lower than its peak value of $44.92.
Likewise, recently, there’s been increased attention from big crypto investors towards one of the early DeFi lending platforms, AAVE. At the moment of writing, the total market capitalization of DeFi stands at approximately $69.88 billion.
Read More
Sorry. No data so far.
2024-09-06 06:04