The decentralized synthetic asset protocol Synthetix (SNX) has announced its return to the Ethereum (ETH) mainnet after a three-year hiatus.
Previously, high gas fees had forced Synthetix and other derivatives platforms to migrate to layer-2 networks like Base. Synthetix migrated to Ethereum’s layer-2 network Optimism in 2022, and later expanded to Arbitrum and Base.
However, Synthetix has stated that Ethereum’s fee landscape has changed significantly, reopening the door for complex, high-frequency DeFi activities on the mainnet.
At this point, Synthetix founder Kain Warwick stated that after years of network congestion that forced him to shift derivatives trading elsewhere, the Ethereum network now has the capacity to support high-frequency financial applications.
The founder also added that the extreme network congestion that previously affected Ethereum has been significantly resolved.
Warwick argued that Ethereum now has the capacity to support multiple perpetual DEXs simultaneously, adding that other perpetual DEXs would follow Synthetix’s lead and return to the mainnet.
The protocol relaunched its perpetual futures trading platform on the Ethereum mainnet on December 17.
Only 500 approved investors have access to this exclusive beta test, and there is a deposit limit of 40,000 USDT per user. Withdrawal functionality is not active at launch but is expected to be enabled within 7 days.
*This is not investment advice.
