Synthetix launches its exchanges on the Optimistic platform
Synthetix announced that Synth exchanges are finally available on the Optimistic Ethereum L2 platform. A limited number of coins are supported on the new platform initially, but the team plans to launch the fully capable merchant service shortly.
The Synthetix protocol plans to fully launch all of its services in OΞ, and the recent announcement is a strategic step towards that goal. Users can now test the new business services on Kwenta.
Step by step to the next phase
Blockchain-based services, especially those that rely on smart contracts and offer financial services, are gradually moving to the next version of platforms. Many of them are coming for layer two solutions, and most of them are ready to take advantage of Ethereum V2's capabilities.
– Optimism (@optimismPBC) July 29, 2021
Synthetix is one of the most active teams regarding migration and wants to release the full protocol on layer two solutions. The first and most important part has happened, and Synth exchanges are now active on the Optimistic Ethereum L2 platform. There are a limited number of digital assets available to trade in this phase, including sUSD, sBTC, sETH, and sLINK.
Launching and gradually migrating to new solutions is a strategy for testing and evaluating situations on the platform; Synthetix plans to evaluate the performance of the network in production in the initial phase and study user behavior.
Lowering gas rates on a decentralized exchange platform results in a better experience for traders and liquidity providers. Synthetix describes one of the benefits:
“As business activity in OΞ increases in the coming months, L2 investors will likely need to start managing their debt more actively. With the ability to coin and burn more frequently without incurring exorbitant gas fees, investors will be able to manage their debt positions more efficiently and improve the overall stability of the network.
A huge reduction in latency from Oracle is another benefit for merchants when Optimistic's launch ends. Chainlink is the lead partner in this section and will provide accurate pricing for merchants.
As mentioned above, launching Synth trades is the initial step. Synthetix plans to offer numerous new features in L2 solutions, and we can expect it to attract more liquidity due to the fast and low gas rate transaction nature on L2.