97% of Crypto Investors will Miss this Next Trend

TL;DR

Synthetics, with its recent updates and strong ecosystem, has the potential to disrupt the perp dex space as the layer 0 protocol for derivative trading.

Transcript

after Luna and UST went bust the crypto Bubble Burst several exchanges were found swimming naked and exchanges like FTX block fi Celsius and Voyager and several other exchanges went Belly Up and this initiated the phase of the perp decks movement where we had several different dexes do extremely well and one of them in particular was gmax and it ac... Read More

Key Insights

• 🥺 The market has become saturated with perp dexes, leading to the need for a layer 0 protocol like Synthetics.
• 💪 Synthetics has a strong ecosystem and partnerships, making it an attractive option for building derivative protocols.
• 📼 Quinta is one of the proof of concepts for Synthetics, showcasing its potential as a trading platform for various assets.
• 🤪 Revenue from protocols built on Synthetics goes back to SNX stakers, creating a positive feedback loop.
• 👻 The success of perp dexes like GMAX depends on the success of their underlying protocol, while Synthetics allows anyone to build and innovate.
• ✋ Synthetics provides a solution for protocols to avoid the high costs of bootstrapping liquidity and incentivizing users through their own tokens.
• 🤱 Competition, risk of collateral issues, and trading fees are potential challenges for Synthetics, but the recent strength in its revenue and ecosystem suggests a promising future.

Questions & Answers

Q: What led to the surge in perp dexes like GMAX?

The collapse of Luna and UST exposed vulnerabilities in several exchanges, leading to a rise in perp dexes as traders sought alternative options.

Q: Why is Synthetics considered as the layer 0 protocol for perp dexes?

Synthetics provides the infrastructure for anyone to build derivative protocols and offers features like staking SNX, lending ETH, DAI, and LUSD, and issuing/receiving sUSD stablecoin.

Q: How does Quinta leverage the Synthetics ecosystem?

Quinta is a trading platform built on Synthetics, allowing users to trade various assets using the sUSD stablecoin as the backbone, driving fees and revenue back to SNX stakers.

Q: How does Synthetics compare to other perp dexes like GMAX?

Synthetics offers more flexibility and options for traders compared to perp dexes like GMAX, as it allows the creation of multiple synthetic assets using the sUSD stablecoin.

Summary & Key Takeaways

• After Luna and UST collapsed, several exchanges, including FTX, BlockFi, Celsius, and Voyager, struggled, leading to a rise in perp dexes like GMAX.

• GMAX outperformed the market but with the saturation of perp dexes, the focus is shifting to the layer 0 protocol, with Synthetics seen as a promising option.

• Synthetics offers the ability to stake SNX, lend out ETH, DAI, and LUSD, and issue/receive sUSD stablecoin, making it a strong infrastructure for anyone to build upon.

• Quinta is one of the proof of concepts for Synthetics, leveraging the sUSD infrastructure and providing a trading platform for various assets.