Synthetix is excited to announce that Synthetix Perps V2 is now live – the future of on-chain perps is here! With its advanced improvements, Perps V2 will revolutionize the on-chain trading experience by significantly reducing fees, improving scalability, capital efficiency, and, most importantly, trader satisfaction.
Introducing the first-of-its-kind off-chain oracle system, Synthetix Perps V2 will significantly reduce perps trading fees to only 5-10 basis points, a significant reduction from Perps V1, while maintaining optimal performance and execution efficiency. These reduced fees will open up endless opportunities and growth within the SNX ecosystem.
Synthetix Perps V2
New Off-Chain Oracles
New off-chain oracles provided by Pyth Network allow perps fees to be reduced to 5-10bps—on par with centralized perps platforms. These oracles, pioneered by SNX, greatly improve the trader experience & minimize the risk of frontrunning attacks. They work as follows: off-chain oracles save prices off-chain and are provided to traders by keepers when a trade is initiated, with an 8-sec delay due to block times. The on-chain validation process includes staleness checks, key-threshold confirm, and a final check against on-chain oracles.
On-chain perps trading is now a viable alternative to centralized options and will help onboard many new DeFi users to the Synthetix ecosystem. The benefits of reduced perps trading fees will not only be limited to perps traders; Lyra and Polynomial users will soon experience similar fee reductions once they integrate with Perps V2.
Delta Neutral for LP’s & Arbitrage opportunities for traders
Perps V2 is a novel exchange engine that efficiently matches buyers and sellers, with SNX stakers serving as a temporary counterparty as needed. Perp LP's (stakers) will only take on asset risk temporarily, while incentives reward traders for bringing markets to neutral.
But that's not all – SNX has also made significant strides to minimize the risk that perps LP's (stakers) take on through innovative risk management features. That's why funding rate changes and a price impact function have been introduced.
The price impact function incentivizes arbitrage traders with a price discount given to traders who return markets to neutral. Funding rate changes allow funding rates to drift upwards in the presence of continued imbalance, incentivizing arbitrage traders to step in.
Both functions will introduce arbitrage opportunities for traders to keep markets neutral over the long term. This innovative path to risk management will help increase scalability and capital efficiency while supporting a wider range of markets.
On launch, Synthetix Perps V2 off-chain oracles will feature an ETH-PERP market. The Synthetix Spartan Council has signaled it will support additional markets in the future.
Start Trading Synthetix Perps V2
Try Synthetix Perps V2 today on either Kwenta or Decentrex, the decentralized frontends that use Synthetix liquidity and power perps trading. The future is now – start trading with Synthetix Perps today.