Synthetix Launches New Platform to Challenge Centralized Exchanges
The founder of Synthetix (SNX), a decentralized finance (DeFi) protocol built on Ethereum, recently unveiled a new project aimed at competing with centralized exchanges (CEXs).
In a blog post, the founder, Kain Warwick, discussed the rationale behind launching this project, even though Synthetix already has a decentralized exchange called Kwenta.
Warwick believes that while Kwenta provides zero-slippage trading for cryptocurrencies, forex, and synthetic perpetual futures, there is still an opportunity to capture more value by creating an exchange that doesn’t require users to interact directly with blockchain and DeFi protocols. He explained that the infrastructure is already in place, and now it’s time to focus on user acquisition.
Warwick acknowledged his appreciation for Optimism, the Ethereum layer-2 solution used by Synthetix, but also highlighted its limitations. Optimism operates as a separate entity, detached from the Ethereum network, making it less accessible to users who are not willing to go through the complexities of interacting with it.
In order to address this, Warwick proposed the idea of launching a new centralized exchange powered by Synthetix, which would provide users with a simplified registration process requiring only a username, email, and password.
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The proposed exchange, tentatively named “Infinex,” would generate a new public-private key pair for each user, stored on the client-side browser. This key would be used to sign trades and transmit them to the Account Relayer on Optimism, ensuring a seamless user experience.
Deposits made by traders would be assigned unique addresses, and funds such as USDT, USDC, or sUSD would be pooled and controlled under governance mechanisms.
In summary, the founder of Synthetix aims to create a new project, Infinex, to compete with centralized exchanges by offering a user-friendly interface and simplified registration process powered by Synthetix’s infrastructure and optimized for seamless trading experiences.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
