Synthetix, the DeFi project in the crypto space, is preparing to expand its range of affiliate products.
Ken Warwick, Founder, open Intent to introduce a new front-end derivative called Infinex to Synthetix’s decentralized trading infrastructure. The upcoming exchange, Infinex, will cater to both novice and experienced traders by offering similar features to centralized exchanges (CEX), such as a non-custodial central limit order book.
While Synthetix is already operating Kwenta, a decentralized derivatives exchange (DEX) on optimism, Warwick highlighted three major issues with the existing platform. For example, traders are required to bind assets to the Layer 2 pool and exchange them for sUSD, the Synthetix stablecoin used as margin collateral, before they can start trading.
Adding to the inconvenience, each order or cancellation on the current platform necessitates the signature of the trader’s wallet, incurring a small fee. In the blog post, Warwick emphasized that the goal is to eliminate any doubts surrounding the ability of decentralized Perpetuals (Perps) to directly compete with centralized exchanges.
Being on a decentralized, unguarded exchange offers advantages, and Warwick comically mocks the now-defunct FTX and other centralized exchanges in the blog post for their distinct counterparty risk. Warwick highlights FTX’s dramatic collapse last fall.
“It is becoming increasingly clear that barriers to the growth of Synthetix Perps can be resolved, but this will require a new approach,” he said.
The planned DEX will cater to traders familiar with platforms like Binance, providing access through a simple username and password, all while maintaining a non-security setup. Warwick explained that Infinex will generate a unique public-private key pair for each user, which is stored locally in the browser, and is only used to sign trading orders and not to withdraw funds.
Related: Cardano Price Turns Bullish, But Is There A Reason Why ADA Is Rising?
The technical implementation details of DEX were not disclosed, with Warwick mentioning in the Synthetix Discord “Ask Me Anything”, that they were entrusted to the core developers.
The introduction of the new project is expected to coincide with the release of Synthetix version 3 of its perpetual futures trading system, which is expected to happen in the coming months.
magazine: Ethereum is ‘undervalued’ but getting stronger: DeFi Dad, Hall of Flame