Synthetix has activated trading on Ethereum’s layer two scaling platform. The service will allow Kwenta, Synthetix’s protocol exchange, to speed up transactions and reduce gas fees by tapping into Ethereum’s scaling technology.
Synthetix, a decentralized and synthetic asset-trading platform, will initially launch only four synthetic assets on Optimistic Ethereum layer two. These assets will include sBTC, sETH, sLINK, and sUSD.
The launch will be used as a testing phase where data collected will be used to optimize trading for synthetic assets for the protocol on layer two. Besides, it will also be used to prepare for the beta launch.
“This is a tremendous milestone for Kwenta and the broader Synthetix ecosystem, representing an opportunity to demonstrate the full potential of Kwenta for the first time. L2 Kwenta will offer users an estimated 50X reduction in gas fees and blazing fast transaction speeds,” the blog post read.
During this phase, members of the Synthetix community will monitor the early performance of the layer two trading platform and vote gradually on the assets to be added according to their needs. As soon as enough assets have been added and the trading experience has been optimized, the next phase of the launch will commence. In this phase, trading incentives will be integrated into the platform.
Traders who use the layer two platforms will experience a 50-fold reduction in gas fees and increased transaction speeds.
Optimistic Ethereum is a technology that is quickly gaining adoption because of its scaling potential. The technology works by assuming every transaction is correct, making transaction processing faster than verifying every transaction. When an incorrect transaction is identified, users can intervene by submitting a “fraud-proof.”
Besides Synthetix, Uniswap, the world’s largest decentralized exchange, also embraced optimistic Ethereum. Uniswap launched its third version on the Optimistic Ethereum rollup technology.
Another platform that is also looking into layer two is Loopring decentralized exchange. The DEX is collaborating with Starkware, a layer two solutions provider that will enable Loopring to boost scalability.
The two firms will create a cross-layer two automated market maker through the collaboration, where liquidity will be shared across different decentralized automated market maker (dAMM) layers. According to Loopring, the platform will transform the DeFi sector. Besides, it will be one of the pillars that will bring scalability into DeFi.
Synthetix Launches Thales Platform
Synthetix also recently launched the Thales platform. Thales is a decentralized finance platform that offers trading through binary options. This allows traders to make speculations on the price movements of an underlying digital asset. The price movement can either be an increase or a decrease, which is why the trading style is referred to as binary.
Thales recently completed a $2.5 million seed-funding round. The funding round was done using Decentralized Autonomous Organization (DAO) first capital formation. The method allows Thales to launch token-holder governance faster than going through the formal legal process. Kain Warwick, Synthetix’s founder, created the method in early July.
Thales dApps offer over 60 financial assets ranging from index products, equities, commodities, and cryptocurrencies. With these assets, traders can create new markets, mint binary option tokens, and trade these tokens on the Thales platform.
Thales token will adopt a distribution model where active members of the Synthetix community will receive a 35% share of the token. 45% of the claimable tokens will be directed towards incentive programs and yield farms, while 20% of the tokens will be set aside for allocation to current and future teams.
Thales has launched the service to allow betting on the Olympics market. This will allow users to place bets on various variables depending on the outcome of the Olympics games. An example of the variables that will be determined in this competition includes, “Will the USA win the most gold medal?” The answer to this variable will be either a yes or a no, hence creating a binary option for the users. The user can then place their bet using an sLONG token or an sSHORT token.
This Olympics betting option will add more functionality to the broader cryptocurrency market. Besides, it will also put the spotlight on Thales and Synthetix; hence traders can expect to see more developments around this offering.