Decentralized finance (DeFi) protocol Synthetix (SNX) is on track to launch its application blockchain, SNAXChain, as revealed in a blog post dated September 4, 2024. Synthetix, an Ethereum-based derivatives liquidity protocol, will build SNAXChain on Optimism’s Superchain infrastructure—a network of Ethereum layer-2 (L2) chains known as OP chains. These OP chains are interconnected with shared security features and a communication layer, powered by open-source technology.
The Superchain ecosystem falls under the governance of the Optimism Collective, a decentralized autonomous organization (DAO). SNAXChain will join an array of existing OP chains, including Base, Lyra, Mode, and Zora.
The forthcoming launch of SNAXChain seeks to enhance the protocol’s efficiency and scalability, offering a smoother and more cost-effective experience for DeFi enthusiasts keen on issuing and trading synthetic assets. In addition, SNAXChain will fortify Synthetix’s liquidity to accommodate the rising demand for synthetic assets. The team behind Synthetix emphasizes that SNAXChain will serve as a neutral hub for on-chain governance and protocol decisions, while continuing to expand across more blockchain networks and L2 solutions.
Synthetix has ventured into partnerships with Conduit to manage chain infrastructure and Wormhole for cross-chain messaging between SNAXChain, Optimism, and Ethereum mainnet. A new governance epoch will commence alongside the launch of the application blockchain. Interested individuals or groups can nominate themselves for various governance councils on SNAXChain by bridging a small amount of Ethereum (ETH) for gas, connecting their wallets to the Synthetix governance app, and then nominating themselves. Voting for the Synthetix governance council will start on September 6, 2024.
Despite the rapid development and innovation in the Ethereum DeFi space, particularly with the advent of layer-2 scaling solutions like Optimism and Arbitrum, DeFi has yet to recapture the fervor it experienced during the ‘DeFi summer’ of 2020. However, recent on-chain trends suggest a potential resurgence. Optimism, for instance, saw strong network activity earlier this year, causing its native OP token to surge by 9%. As the network expands, user activity could continue to climb.
Additionally, decentralized exchange (DEX) Uniswap recently hit a cumulative $50 million in total revenue, hinting at the potential undervaluation of its native UNI token, which is currently down 86% from its all-time high of $44.92. One of the oldest DeFi lending protocols, AAVE, has also seen renewed interest from crypto whales. The total DeFi market cap stands at $69.88 billion at the time of writing.
