Synthetix Goes Live on Optimistic Ethereum L2
- During the initial testing phase, Synthetix exchanges will be enabled for sUSD, sBTC,sETH, and sLINK trading on Optimistic Ethereum L2.
- Optimistic Ethereum is set to bring significant improvements to Synthetix, including lower fees and better trade security.
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In a blog post published on 30 July, Synthetix announced that all synth exchanges have gone live on the Optimistic Ethereum L2. During the initial testing phase, exchanges will be enabled for sUSD, sBTC, sETH, and sLINK, with more cryptocurrencies to be added as the phase progresses.
The testing phase will be used to better evaluate network performance, observe the behavior of users on L2, and gain other valuable insights as additional functionality is rolled out on L2, the company said in the blog.
With more exchanges set to be launched on Optimistic Ethereum, there is a high likelihood they will experience some downtime or even minor outages as new functionalities are deployed. The Optimism network will also likely be upgraded through downtimes several times ahead of the Optimism mainnet launch.
One of the biggest improvements Optimism will bring to Synthetix is a significant reduction in oracle latency. The Synthetix protocol fills trades at prices reported by Chainlink’s decentralized price oracle network. However, high fees on Ethereum L2 can often make frequent oracle updates economically impractical, creating opportunities for frontrunning. On L2, price deviations between oracle updates can be on the same order as an exchange fee, rate effectively eliminating the potential profit from frontrunning.
- Coinbase’s Base blockchain was made available to the public on Wednesday, featuring over 100 dApps and services as part of its ecosystem.
- In order to show its capabilities and promote its mainnet partners, Base has also launched an event called “Onchain Summer” that will allow users to mint exclusive NFTs on the network.
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- Coinbase’s protocol security team and over 100 external security researchers were involved with testing the upcoming layer 2 Base blockchain over the past six months.
- The project said it has now completed four out of five criteria for Base’s mainnet launch, with the remaining one being to demonstrate “testnet stability”.
- The initial vesting period for early investors and contributors of Optimism is about to end on 31 May, an event that will double the circulating supply of OP tokens.
- The event is raising concerns about the future price of the token, considering seed investors Paradigm and IDEO are sitting on a potential profit of more than 10,000%.