YEREVAN (CoinChapter.com) — Synthetix has recently introduced SNAXchain, a new app chain specifically designed to improve cross-chain liquidity and increase rewards for SNX staking. Furthermore, Matt Losquadro, a core contributor at Synthetix, confirmed this development during an announcement on Sept. 6. The SNAXchain will also help manage governance and protocol decisions for Synthetix’s deployments on Ethereum, Optimism, Arbitrum, and Base.
The app chain’s primary focus is, first and foremost, to offer a neutral hub for governance as Synthetix expands to more layer-2 networks. Additionally, Losquadro stated that this platform would further facilitate decisions related to protocol expansion across various blockchain ecosystems.
Cross-Chain Liquidity and SNX Staking on SNAXchain
Synthetix plans to introduce SNX staking on SNAXchain, which will enable cross-chain liquidity across multiple layer-2 solutions. This will allow Synthetix to share liquidity using Optimism’s Superchain technology. Losquadro mentioned that further proposals around these features are expected in the fourth quarter.
Synthetix liquidity pools on Arbitrum currently offer yields ranging from 7% to 16% for liquidity providers. Moreover, these pools play a crucial role in Synthetix’s broader strategy to not only increase liquidity but also enhance rewards for SNX stakers.
Using Optimism Superchain for Cross-Chain Messaging
SNAXchain operates on Optimism’s Superchain, a network designed to connect layer-2 platforms. The app chain also uses Conduit and Wormhole for cross-chain messaging, ensuring smooth communication between different blockchains. This interoperability is key as Synthetix aims to bring cross-chain liquidity to SNX staking.
Synthetix launched on Arbitrum in July, entering the decentralized derivatives market with a focus on providing liquidity for derivatives like perpetual futures. Perpetual futures allow traders to buy or sell an asset at a future date without expiration. According to DefiLlama, GMX dominates the Arbitrum perpetual futures market with more than $450 million in total value locked.
Synthetix distinguishes itself in the highly competitive Arbitrum DeFi ecosystem by accepting a broad range of tokens as collateral. For instance, the platform supports wrapped Ether (WETH), and additionally, it accepts USD Coin (USDC). Furthermore, Arbitrum’s native token, ARB, is also included in the list of collateral options, offering flexibility to its users.
