Deprecating Leveraged Tokens

Synthetix -

Synthetix will begin sunsetting all remaining leveraged tokens on Optimism. This is one of the final steps in our broader shift away from Layer 2 deployments, as we refocus protocol resources on Synthetix Mainnet, the high-performance perp exchange being built on Ethereum.

This shutdown follows the completed deprecations of our products on Base and Arbitrum. You can read more about those changes in L2s are Dead, Long Live Ethereum. This represents one of the two remaining steps before total retirement of L2s is complete. For perps traders on Optimism, no action is required at this time, but we encourage you to monitor announcements for future changes.

What's Happening

All Synthetix-powered leveraged tokens on Optimism are being deprecated. New mints have already been disabled in the app. Over the coming weeks, the tokens will be paused, liquidated, and the resulting balances returned to users.

Timeline

Deprecation will occur in the following stages:

  1. Minting Disabled (August 4, 2025)
    Minting has been disabled, and no new leveraged token positions can be opened.
  2. Final Redemption Window (August 4–11, 2025)
    Users have one week to manually redeem their leveraged tokens. This is the final opportunity to exit positions manually.
  3. Liquidation and Airdrop (Begins August 11, 2025)
    After the redemption window closes, remaining tokens will be liquidated. sUSD will be airdropped within a couple weeks of the liquidation event to holders, based on their balances at the time of liquidation.

What You Should Do

If you’re currently holding leveraged tokens, we strongly encourage you to redeem your tokens before the shutdown deadline. Manual redemption will give you immediate access to your funds and avoid reliance on the liquidation process, giving you full control over your trading.

If You Do Nothing

Any positions that remain after the shutdown deadline will be automatically liquidated. You will still receive your share of the underlying value via airdrop, distributed to the wallet holding the leveraged tokens.

Join the Community

Follow Synthetix closely as we speedrun to mainnet:

Join the conversation: discord.gg/synthetix
Subscribe to TG: t.me/+v80TVt0BJN80Y2Yx
Follow us on X: x.com/synthetix_io