Beginning today, Synthetix Perps on Arbitrum have been placed into close-only mode. This decision follows the sharp pivot in Synthetix’s product strategy to vertically integrate rather than existing solely as a platform. While this decision was not taken lightly, it is a necessary step to ensure we can deliver the most liquid, reliable, and user-friendly onchain trading, leverage, and yield platform as possible. As each chain’s deployment requires unique liquidity, maintenance, and support resources, consolidating on one network allows us to focus these resources on strengthening our core offerings. This is also an important step as Synthetix progresses towards Snaxchain, Synthetix’s own Superchain deployment.
Towards a Cohesive Synthetix
Following the Synthetix Reboot, a restructuring of the DAO, Synthetix has made several bold moves to reposition the protocol including the acquisition of ecosystem projects Kwenta and TLX, consolidating these projects into a single Synthetix native trading app. By sunsetting Synthetix on Arbitrum, the DAO continues to carve a clear and focused path toward a trading platform that represents the best Synthetix can offer.
The decision to wind down Arbitrum Perps is part of a broader strategy to grow alongside Base, the largest and fastest-growing Ethereum rollup by TVL. Synthetix’s USDC pool on Base has already become the largest non-SNX liquidity pool in the protocol. With the launch of Synthetix V3’s most cutting-edge features, including gasless 1-click-trading, multicollateral margin, and the upcoming launch of Leveraged Tokens, Base is the ideal network to continue development on a world-class derivatives trading suite.
Steps for Traders
As of today, all Perps markets on Arbitrum have been set to close-only mode by reducing the open interest caps to 0. No immediate action is required. Here’s what this means:
- Existing Positions: Open positions will remain unaffected and can be reduced or closed at any time.
- New Positions: Traders will no longer be able to open new positions or increase existing positions.
- Possible Impact: Due to potential volatility in market skew, traders may see larger-than-usual changes in premiums, discounts, or funding rates. We encourage traders to monitor their positions closely.
While no positions will be force-closed at this time, we encourage traders to migrate their trading to the Base network to enjoy an uninterrupted, constantly improving trading experience. All markets from Arbitrum are available on Base, and traders can bridge funds right from our swap interface. Powered by Socket, our swap interface supports bridging from nearly any EVM chain and swapping directly into any supported margin collateral for USDC-denominated v3 on Base.
USDx on Arbitrum
Arbitrum’s USDx is the backbone of perps trading on Arbitrum, and will need to be sunset alongside the Arbitrum perps product. While USDx has remained overcollateralized and backed by diverse asset pools, the DAO will need to act to support the liquidity and stability necessary for the transition.
The Synthetix Treasury has purchased USDx from the open market and funded a wrapper, which allows USDx to be redeemed for USDe, and vice versa. Traders and LPs can exit their USDx position or purchase to repay their debt via the wrapper or the open market.
The LP Experience
There are no required actions for liquidity providers, however, Arbitrum pools will cease generating fees once all Perps positions are closed. To support LPs during this transition, and to prepare for the upcoming Base Leveraged Tokens launch, Synthetix will offer three additional weeks of LP incentives on Base for those who wish to migrate their LP positions to the Base network.
LPs will also soon also enjoy the option of depositing and earning yield on WETH, wstETH, cbETH, and cbBTC on Base to match Arbitrum’s LP options where possible.
