Synthetix Devotes to Resolve Counterparty Risk by Launching Infinex Derivatives Exchange

Synthetix’s devotion to addressing counterparty risks is evident in its announcement to launch the Infinex derivatives exchange to accommodate novice and experienced traders. The decentralized finance (DeFi) protocol proposal seeks to deliver the Infinex platform with features that match the centralized exchanges (CEX). 

Synthetix Integrating Decentralized Trading Infrastructure for Infinex Derivatives Exchange

Synthetix desires to replicate the experience in the DeFi project as it expands its portfolio into affiliated products within the crypto space. Kain Warwick, the Synthetix founder, admitted that the platform intends to unveil new derivatives front-end to accommodate the decentralized trading infrastructure. 

Synthetix restated that the upcoming exchange platform will offer a non-custodial central limit order book. The platform will rival CEX by offering services that cater to experienced, intermediate, and novice traders.

Synthetix’s move to launch Infinex expands its presence in the decentralized segment, given that it already operates Kwenta. Kwenta involves a decentralized exchange (DEX) for derivatives that runs on Optimism.

Infinex to Obligate Traders Leverage Synthetix Stablecoin sUSD in Bridging the Crypto Holdings

Warwick considers Infinex as offering three unique features from Kwenta. The platform will obligate the traders to bridge their crypto assets to the layer-2 rollup. Doing so will enable swapping for sUSD. Warwick indicated that sUSD involves Synthetix’s stablecoin that users would leverage as margin collateral before beginning trading. 

Warwick clarified that placed and canceled orders would compel the trader to input the wallet signature. The users will incur a small fee owing to execute such transactions. A subsequent blog post clarified that Infinex targets eliminating skepticism on the decentralized Perpetuals (Perps) capability to compete with centralized exchanges directly.

Infinex Infrastructure Oriented to Non-custodial Services 

Infinex offers non-custodial decentralized exchange services that Warwick portrays as averting the outcome witnessed in the embattled FTX. He considers Infinex solving the distinctive counterparty risks exposed when the Sam Bankman-fried empire collapses. 

Warwick is optimistic that Infinex offers a superior platform for users seeking decentralized solutions. The infrastructure will avoid plunging users into instances of locked and perhaps lost digital wealth witnessed during the FTX’s dramatic collapse in 2022. The FTX collapse witnessed in the previous autumn presents a case to resolve the barriers hindering Synthetix Perps’ growth. He admits that its accomplishment would involve initiating a new approach – Infinex derivatives exchange. 

Warwick considers the DEC platform will offer services similar to Binance. In particular, traders will access the platform via a username and unique password. Unlike Binance, it will maintain a non-custodial setup. 

Infinex Launch Coincide with Upgrade to Synthetix 3

Warwick indicated that Infinex will run by generating public-private key pair unique to each user. The key would remain stored locally within the browser to facilitate signing trade orders rather than executing fund withdrawals. 

Warwick was elusive to reveal the technical implementation specifics of Infinex. He limited the scope of the Synthetix Discord inquiry as tech specifications were entrusted to the project’s core developers. 

Warwick projects that releasing the Infinex derivatives exchange project would align with the unveiling of Synthetix 3. The upgrade to version 3 targets improving the infrastructure supporting perpetual futures trading. Warwick did not disclose the exact date of version 3 release, though he anticipates its completion in the upcoming months.

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