Synthetix (SNX) Synthetix enables the issuance of synthetic a | Crypto Great | Bitcoin | DeFi

Synthetix (SNX)

Synthetix enables the issuance of synthetic assets on the Ethereum blockchain. Due to high transaction fees on the Ethereum network, the Synthetix community has been working to deploy Synths on Optimism, Ethereum’s Layer-2 network. Optimism puts all transaction data on-chain while running computation off-chain, increasing Ethereum’s transaction speed and decreasing fees.

Users are looking for an easy, decentralized way to trade Synths with low fees. Though still in beta testing, Synths are trading on Kwenta V2 on Optimism. Kwenta is a DEX for perpetual futures contracts. Using perpetual contracts, users can trade a variety of crypto and non-crypto-asset derivatives.

Listing equities and commodity synths on Optimism also benefits the Synthetix ecosystem by adding a new asset category. Kwenta can strengthen its value proposition and drive additional volume through the Synthetix protocol.

Last month, two proposals passed that added silver and gold commodity Synths to Kwenta V2.

Synthetic versions of Tesla, Apple, Amazon, Netflix, and Google previously traded on Kwenta, but due to high fees, trading stocks’ Synths were put on hold. Now that Synths are being deployed on Optimism, and fees are much cheaper, we may soon see a resurgence of these assets.

There’s international demand for trading American stocks in a cheap and decentralized way. This is possible with the Synthetix network, and has been its goal since inception. Now that more second layer solutions exist, we expect to see more activity in the Synthetix ecosystem. In just 33 days since Kwenta V2’s launch on Optimism, over $1.1 billion has been traded on the platform. This is promising as the project continues to gain adoption