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Synthetix has launched a new app chain — SNAXchain — aimed at bringing cross-chain liquidity and trading-fee revenues to native-token stakers and onchain trading products, Matt Losquadro, a Synthetix core contributor, told Cointelegraph on Sept. 6.&nbsp;
The app chain will initially serve as an onchain governance platform to manage Synthetix deployments on Ethereum mainnet and layer-2 (L2) scaling chains, including Optimisim, Arbitrum and Base, according to a Sept. 4 <a data-ct-non-breakable="null" href="https://x.com/synthetix_io/status/1831391360320233651" rel="null" target="null" text="null" title="null">post</a> on the X platform.&nbsp;
SNAXchain is designed to “enable a neutral hub for governance and protocol decisions, particularly as Synthetix expands to additional chains and L2s,” Losquadro told Cointelegraph.&nbsp;
However, Synthetix is actively exploring “future functionality for SNAXchain, including staking for SNX, cross-chain liquidity, and powering a custom-built perps product,” Losquadro said. “Look for more proposals around these features in Q4.”
The protocol’s long-term goal is to launch SNX (<a data-ct-non-breakable="null" href="https://cointelegraph.com/synthetix-price-index" rel="" target="_self" text="null" title="https://cointelegraph.com/synthetix-price-index">SNX</a>) staking on SNAXchain and share liquidity across multiple L2s using Optimism’s Superchain, Losquadro added. 
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 <img alt="New Synthetix app chain aims for cross-chain liquidity for SNX staking, perps" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191c8e9-fa72-7098-966b-c913dae2012e">
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 Synthetix liquidity pools on Arbitrum. Source: Synthetix
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SNAXchain operates on Optimism’s Superchain — a network of interconnected layer 2s built on Optimism’s technology stock — and uses interoperability platforms Conduit and Wormhole for cross-chain messaging.&nbsp;
Synthetix is a decentralized finance (DeFi) protocol that specializes in providing “liquidity for permissionless derivatives like perpetual futures, options.” It launched on Arbitrum — widely considered Ethereum’s leading layer-2 for DeFi — in July.&nbsp;
Perpetual futures, or “perps,” are derivatives that let traders buy or sell an asset at a future date with no expiration. DeFi protocol GMX currently dominates the decentralized perps market on Arbitrum. <a data-ct-non-breakable="null" href="https://defillama.com/protocol/gmx#information" rel="nofollow noopener" target="_blank" text="null" title="https://defillama.com/protocol/gmx#information">According</a> to DefiLlama, it has more than $450 million in total value locked.&nbsp;
Synthetix is betting that its ability to accept a variety of tokens as collateral will differentiate it in Arbitrum’s competitive DeFi ecosystem, <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/sythetix-betting-new-multi-collateral-perps-arbitrum-rollout" rel="null" target="null" text="null" title="null">Losquadro told Cointelegraph in August.</a>&nbsp;
According to its website, the DeFi derivatives platform currently accepts collateral in tokens, including wrapped Ether (WETH), USD Coin&nbsp;<a data-ct-non-breakable="null" href="https://cointelegraph.com/usdc-price-index" rel="null" target="null" text="null" title="null">(USDC)</a> and Arbitrum’s native token, ARB (<a data-ct-non-breakable="null" href="https://cointelegraph.com/arbitrum-price-index" rel="" target="_self" text="null" title="https://cointelegraph.com/arbitrum-price-index">ARB</a>). Yields for liquidity providers, in the form of SNX incentives, range from around 7% to nearly 16%.
On Sept. 4, GMX launched a series of products — called GMX Liquidity Vaults — designed to improve capital efficiency for its liquidity providers, according to a <a data-ct-non-breakable="null" href="https://x.com/GMX_IO/status/1831403607972892737" rel="null" target="null" text="null" title="null">post</a> on the X platform.&nbsp;
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/defi-wrong-not-market-synthetix-founders-plan-to-fix-it/" rel="null" target="null" text="null" title="null">Synthetix founder Kain Warwick: It’s DeFi that’s wrong, not the market</a>

New Synthetix app chain aims for cross-chain liquidity for SNX staking, perps

Cointelegraph

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