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Synthetix Retrospective, Q1 2025

Synthetix

• 3 min read
Synthetix Retrospective, Q1 2025

Synthethix emerged from 2024 with a renewed sense of purpose. A radical governance shakeup and the acquisitions of TLX and Kwenta transformed the protocol from a suite of tools for DeFi builders to a user-focused derivatives trading platform, aiming to set new standards for onchain UX. Focusing squarely on Base, Synthetix contributors set about reimagining perps and leveraged token offerings as a native product.

If you missed a few announcements, or just want to revel in the strides taken at the outset of 2025, this blog will break down the major milestones and works-in-progress.

Synthetix Exchange: Scaling Perps on Base

The transition from Kwenta to Synthetix Exchange consolidated product development and liquidity under a unified platform. Since then, Synthetix has launched several key upgrades for Synthetix Exchange, achieving a new all-time-high in unique traders on Base in the first weeks of 2025.

  • Multi-collateral margin deposits were introduced on Base, allowing traders to use cbETH, cbBTC, and wstETH as collateral.
  • Arbitrum perps were deprecated, shifting all perps liquidity and development focus to Base.
  • New markets launched, including TRUMP, VELO, BERA, and KAITO, bringing the total number of trading pairs to 107 on Base.
  • Gasless 1-Click Trading expanded to Base, removing wallet confirmations and sponsoring users’ gas costs.
  • Performance optimizations were released. By refining and optimizing the inherited Kwenta codebase, Synthetix contributors reduced latency and improved reliability of Perps v3.

Synthetix Leverage: Simple Trading, Tokenized Strategies

Following the acquisition of ecosystem partner TLX, the leveraged token protocol was relaunched as Synthetix Leverage in January–a structured product built on top of Synthetix Perps. Originally conceived as multiple tokenized strategies for each market, targeting different leverage appetites, Synthetix Leverage brought a fresh approach to the new Base deploy. By targeting a standardized 3x across all markets, Synthetix can more easily build liquidity across spot AMMs.

  • 3x Bull tokens launched on Base, allowing traders to gain leveraged long exposure on assets like BTC, ETH, and SOL.
  • 3x Bear tokens followed in February, providing leveraged short exposure on the same markets.
  • The Leveraged Token Rally distributed 150,000 USDC and 75,000 OP for traders who minted Leveraged Tokens. 
  • New markets came to Synthetix Leverage, including TRUMP and BERA, allowing Synthetix to stay nimble as the volatility in the market narrative shifted attention between popular coins.

Incentives and Yield Programs

To support liquidity and drive participation, several ongoing incentive programs continue to provide opportunities for traders and liquidity providers.

What’s Next?

Protocol-Owned Liquidity

Protocol-Owned Liquidity (POL) is a new staking model coming to Synthetix. Instead of individual stakers managing debt, POL centralizes liquidity and debt management at the protocol level, creating a seamless 1-click staking experience while significantly improving capital efficiency.

This renewed focus on the SNX token unlocks over $100 million in liquidity, fueling new Synthetix products, generating yield for SNX stakers, and providing fresh incentive opportunities.

Migration for existing stakers, including debt forgiveness, along with new staker deposits and incentives, will roll out in the coming weeks. No action is required at this time, but existing stakers will have the opportunity to participate in alpha testing of the migration process.

Synthetix Vaults

Synthetix vaults automate strategies like basis trading to provide yield opportunities and reduce funding rate volatility. Vaults are not just a new product offering for yield hunters, but a critical part in improving UX and market efficiency in upcoming leveraged products.

Perps v4 and Snaxchain

Early leaks gave a sneak peek at the work being done on Perps v4, a high performance orderbook-based system which will serve as the flagship product for Snaxchain. Perps on Snaxchain are expected to have a more CEX-like feel due to the hybrid AMM and orderbook system, sub 1 second latency, and protocol-owned liquidity backing.

Stay Connected

Synthetix is building momentum into 2025, and the best is yet to come. Stay updated by joining the community and following the latest updates.

Join the conversation: discord.gg/synthetix
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