Synthetix announced that Synth exchanges are finally live on the Optimistic Ethereum L2 platform. Initially, a limited number of coins are supported in the new platform, but the team plans to launch the fully capable trading service shortly.
Synthetix protocol plans to fully launch all of its services on OΞ, and the recent announcement is a strategic step toward that goal. Users can now test the new trading services on Kwenta.
Step by Step Toward the Next Phase
Blockchain-bases 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 looming for layer two solutions, and most of them are ready to benefit from the Ethereum V2 capabilities.
— Optimism (@optimismPBC) July 29, 2021
Synthetix is one of the most active teams regarding the migration and wants to launch the full protocol on the layer two solutions. The first and most important part has happened, and Synth exchanges are now live on the Optimistic Ethereum L2 platform. A limited number of digital assets are available for trading in this phase, including sUSD, sBTC, sETH, and sLINK.
Gradually launching and migrating to the new solutions is a strategy to test and evaluate the situations in the platform—synthetix plans to evaluate network performance in production in the initial phase and study the behavior of users.
The latest announcement post about launching the exchanges on the Optimistic platform describes the benefits of moving to the L2 solutions. The most important one is decreased gas fees for traders. It claims ~50x lower gas fees for traders in the new platform.
Decreasing the gas fees in a decentralized exchange platform results in a better experience for traders and liquidity providers. Synthetix describes one of the benefits:
“As trading activity on OΞ scales up in the coming months, L2 stakers will likely have to start managing their debt more actively. With the ability to mint and burn more frequently without incurring exorbitant gas fees, stakers will be able to manage their debt positions more efficiently and improve the overall stability of the network.”
An enormous reduction in oracle latency is another benefit for traders when the launch is finished on Optimistic. Chainlink is the primary partner in this section and will provide accurate prices for traders.
As mentioned above, launching Synth exchanges is the initial step. Synthetix plans to offer numerous new features on the L2 solutions, and we can expect it to attract more liquidity because of the fast and low gas fee transaction nature on L2.
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