Decentralized derivatives and synthetic asset trading protocol Synthetix has launched trading on the Optimistic Ethereum layer-two scaling platform.
The long-awaited launch was announced by the Synthetix protocol exchange Kwenta on Friday. It enables the exchange to offer faster transactions and lower fees using optimistic rollup technology.
Initially, there will be just four synthetic assets available for trading on layer two — sUSD, sETH, sBTC and sLINK. The data collected from this alpha launch and testing phase will enable the protocol to optimize synth trading on layer two and prepare for the beta launch, the announcement stated.
Trading on layer two will offer users an estimated 50x reduction in gas fees and “blazing fast transaction speeds.”
IT'S FINALLY HERE!! @chainlink and @synthetix_io now live on L2! WOOOO! https://t.co/IDbawgZrh6
— Optimism (@optimismPBC) July 29, 2021
The Synthetix community will monitor early performance on the scaling platform and gradually vote in additional synthetic assets for trading as they see fit.
Optimistic Ethereum (OΞ) uses a rollup technology that assumes all of the transactions are correct instead of verifying each one. Users only need to intervene if they see an incorrect transaction where they can submit a “fraud-proof.”
Earlier this month, Uniswap announced the launch of its v3 on the Optimistic Ethereum platform.
It feels surreal to finally be here! DeFi summer 2.0 OΞ edition begins.
— kain.eth (@kaiynne) July 29, 2021
In a related development, the Synthetix-based Thales platform just launched. Thales is a decentralized finance (DeFi) platform providing binary options-style trading which allows traders to speculate on the price movement of the underlying market or crypto asset. There are two possible outcomes, which is why they are considered binary.
Related: Thales raises $2.5M for binary options platform in Synthetix ecosystem
The Thales decentralized application offers more than 60 different assets, including cryptocurrencies, commodities, equities and index products, to create markets, mint binary options tokens and trade them on the platform.
It introduced some trial Olympics sports markets which enable users to bet on variables such as “Will the USA win the most gold medals?” or “Will Australia’s men’s basketball team win the gold medal?” The answers are binary with a yes or no outcome which can be wagered on with a sLONG or sSHORT token.
Still on the subject of layer two, the Loopring decentralized exchange announced a collaboration with layer-two solutions provider StarkWare. The partnership has introduced a cross-layer-two automated market maker (AMM) that shares liquidity across layers called dAMM, with the "d" standing for "decentralized." Loopring has predicted that the platform will become “one of the most fundamental primitives to scaling DeFi.”