After a comprehensive security assessment by Open Zeppelin, Macro, and Iosiro, Synthetix V3 has been successfully launched on Ethereum Mainnet & Optimism. This is a significant achievement for Synthetix, but it is just the start. As there are so many real-world factors that can’t be predicted in a lab, they’ll be gradually activating features and bringing out enhancements from here on out.
Synthetix Achieves Major Milestones, including Version 3 Launch and Foolproof Safety
Major achievements include keeping Synthetix safe during the unparalleled economic conditions of 2022. It launched a new execution of permanent futures contracts previously this year and obtained Synthetix Version 3 to this spot.
Synthetix is a system that can be implemented on blockchains and linked with decentralized oracle networks. With the use of smart contracts, marketplaces may exploit this liquidity to issue derivatives backed by ERC-20 coins. The value of swaps is apparent. Even if the applications for crypto-native products are still in their infancy. The challenge is that, instead of attempting to make derivatives less centralized, they may make them more so by designing more distributed systems to support them.
Because the V3 deployment does not yet have any markets associated with it, the major feature that it possesses at the moment is the generation of a collateralized debt position in the form of dollar-denominated stablecoins. It will be utilized in the internal market.
Synthetix V3 Enables Safer Derivatives through Decentralization and Scalability
Synthetix V3’s design allows for increased decentralization and scalability. This will in turn results in safer derivatives. Following the laid out migration plan, the V.3 system will be able to support the Synthetix V2 system. It will aid through the heritage market, allowing V2 liquidity suppliers to decline their stance into V3 in a single purchase. However, the existing spot instrumentals and permanent futures markets retain their ability to serve as collateral.
The updated design’s core system is more flexible. It allows for things like multi-collateral holding, user-configurable debt locations, and permissionless synthesizers. The plan divides the whole debt into several markets. This allows for easier trading and the minting/burning of snxUSD while shifting the burden of interest payments onto the underlying investors. Stakeholders will be able to tailor debt management to their specific needs and preferences. It will use the new platform’s market-exposed profile underwriting and management options. The Core Contributors are planning to interface with Chainlink’s CCIP to facilitate cross-chain stablecoins transfers. This is going to be a priority in future enhancements to the V3 system.
