Synthetix, a prominent decentralized finance (DeFi) project in the crypto space, is set to enhance its range of products with the introduction of a new derivatives exchange called Infinex. This upcoming exchange aims to cater to both novice and experienced traders by providing features similar to centralized exchanges (CEX) while maintaining a non-custodial setup.
Kain Warwick, the founder of Synthetix, identified three key issues with the current platform, Kwenta, a derivatives decentralized exchange (DEX) operating on Optimism. These concerns include the need for asset bridging to the layer-2 rollup and exchanging them for sUSD (Synthetix’s stablecoin used as margin collateral) before trading can commence. Additionally, each order or cancellation on the existing platform incurs a small fee due to the requirement of the trader’s wallet signature.
Infinex aims to eliminate these inconveniences and address skepticism surrounding decentralized perpetuals (Perps) directly competing with centralized exchanges. The planned DEX will offer accessibility similar to popular platforms like Binance, allowing users to access the exchange through a simple username and password. However, it will maintain a non-custodial structure.
To ensure security, Infinex will generate a unique public-private key pair for each user, stored locally in their browser. These keys will be solely used for signing trade orders and not for fund withdrawals, enhancing the overall safety of the platform.
While technical implementation specifics were not disclosed, Warwick mentioned that they entrusted the core developers with the task. The launch of Infinex is expected to coincide with the release of Synthetix’s version 3 of its perpetual futures trading system in the coming months.
By expanding its offering with Infinex, Synthetix aims to provide a more seamless and user-friendly experience for traders, combining the advantages of decentralized finance with the familiarity of centralized exchanges. This move further strengthens the DeFi ecosystem and contributes to the ongoing growth and adoption of blockchain technology.