Derivative protocol SynFutures is gearing up to introduce an upgraded V2 version of its decentralized exchange (DEX), with the initial launch set to take place on Polygon. Plans are in place to expand SynFutures DEX v2 to other platforms, such as Arbitrum, Polygon zkEVM, and zkSync, in due course.
SynFutures’ DEX v1 has been operational for more than 18 months but is now being retired in preparation for the v2 launch, as reported by Matthew Liu, SynFutures’ co-founder. The upgraded DEX will include perpetual futures, perpetual swaps, and enhanced UI/UX features, in addition to an improved automated market maker (AMM).
Liu stated, “The idea is to make derivatives on-chain and available and make the experience much easier for an average user.” Mark Lee, a partner and chief marketing officer of SynFutures, highlighted that the platform’s focus on long-tail assets distinguishes it from other crypto derivatives DEXs. SynFutures allows for the listing of virtually any token, regardless of whether it’s a major coin such as BTC or ETH or a lesser-known, increasingly popular one.
More traditional derivatives trading DEXs require core teams to decide which assets to list. Lee noted that SynFutures is taking steps to democratize asset listing and trading. With the launch of v2, a new feature called “DAO futures” will also be introduced, according to Liu. This development refers to a coin margin futures or coin margin perpetual approach, whereby the AMM is designed with a single token liquidity provision model.
Project tokens can be used to create liquidity pools against other cryptocurrencies, including USDC, ETH, and USDT, without needing to pair them with the latter coins. Liu observed that this reduces the long-tail asset liquidity creation barriers at the derivative layer.
Lee provided an example of how this feature might work in practice, stating that if a project possesses a sizable community, a trading pair of BTC against their own native token can be launched using DAO futures. Not only does this drive liquidity for these pairs, but it ensures users remain within the asset. Users can provide liquidity to existing trading pairs, or even those they have listed themselves. Liquidity providers receive a share of the trading fees proportionate to their pool’s contribution.
Lee said that over 80% of the trading fees on SynFutures will go to LPs, with the precise ratio being 5:1. Furthermore, significant user interface improvements will be part of the public beta launch of SynFutures v2.
Lee explained that because existing projects tend to cater to the specific DeFi native user community, UI and UX aspects are critical in decentralized finance (DeFi) overall. SynFutures v2 aims to make it simple for everyday users by being more accessible, user-friendly, and intuitive.
Ultimately, this approach aims to expand the DeFi ecosystem beyond today’s niche users, as Lee concluded: “This is our way of trying to expand the DeFi ecosystem beyond the handful of DeFi degens that exist in this space today.”