Decentralized finance (DeFi) protocol Synthetix (SNX) is working to launch its blockchain application, called SNAXChain, according to a blog post. published on September 4, 2024.
Synthetix SNAXChain to Launch on Optimism’s Superchain Infrastructure
Ethereum-based derivatives liquidity protocol Synthetix is set to unveil SNAXChain, an application blockchain built on Optimism Superchain Infrastructure.
For the uninitiated, Optimism’s Ethereum Layer-2 (L2) Superchain scaling network is essentially a network of L2 chains, known as OP chains. These chains share security features, a communication layer, and are powered by an open-source technology stack.
The Superchain ecosystem is governed by the Optimism Collective, a decentralized autonomous organization (DAO). Examples of existing OP chains include Base, Lyra, Mode, and Zora, with SNAXChain posed to enter the list.
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The launch of SNAXChain aims to improve the efficiency and scalability of the protocol to offer a more integrated and cost-effective experience for DeFi enthusiasts interested in issuing and trading synthetic assets. SNAXChain will also increase Synthetix’s liquidity to keep up with the growing demand for synthetic assets.
The Synthetix team notes that SNAXChain will to be a neutral hub for on-chain governance and protocol decisions. At the same time, the protocol will continue to expand to additional blockchain networks and L2 solutions.
Notably, Synthetix has partnered with Conduit to manage the chain’s infrastructure.. Partnered with Wormhole to provide cross-chain messaging between SNAXChain, Optimism, and Ethereum mainnet.
Synthetix will usher in a new era of governance alongside the launch of the new application blockchain. According to the official post, interested individuals or groups can apply for various governance councils on SNAXChain.
A small amount of Ethereum (ETH) must be bridged to the chain to obtain gas. After bridging the ETH, interested nominees can connect their wallets to the Synthetix governance application and nominate themselves to the appropriate board. Voting for the Synthetix governance board is scheduled to begin on September 6, 2024.
Can DeFi make a comeback?
Despite the rapid pace of development and innovation in the Ethereum DeFi space with the launch of layer 2 scaling solutions such as Optimism and Arbitrum, DeFi no managed to dominate the industry as it did during the ‘DeFi summer’ of 2020.
However, recent on-chain trends and patterns could indicate a possible DeFi comeback later this year. For example, Optimism witnessed strong network activity earlier this year, helping its native OP token surge by 9%. As the network expands to more chains, user activity is likely to continue to increase.
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Similarly, major decentralized exchange (DEX) Uniswap recently done a total cumulative revenue of $50 million, presenting a strong argument for the undervaluation of its native UNI token, down 86% from its all-time high of $44.92.
Similarlyone of the first DeFi lending protocols, AAVE, recently saw a resurgence in the interest of crypto whales. The total market cap of DeFi is $69.88 billion at the time of writing.
Featured image from Binance Academy, chart from TradingView.com