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A popular decentralized trading platform Synthetix has recently announced the upgrade of its version. As per the company, it is now shifting to Synthetix V3 to better scale sUSD and migrate $SNX tokens into the ecosystem. On its official X account, the platform disclosed this exclusive development. It added that this move would likely provide a unique architecture and foundation for the latest protocol.
Transitioning to Synthetix V3: Scaling sUSD & Migrating SNX
— Synthetix ⚔️ (@synthetix_io) May 17, 2024
Synthetix is undergoing a pivotal phase of the V3 rollout, introducing a new foundation and architecture for the protocol. This transition also marks a significant step towards enhancing the scalability and… pic.twitter.com/X6UwdDPdKA
Synthetix Announces the Launch of Exclusive V3 Version for Enhanced sUSD Scaling and SNX Migration
The respective transition additionally plays the role of a remarkable development as it targets decentralization and scalability. As a result of this, sUSD (the local stablecoin of Synthetix) will reportedly get enhanced scalability as well as decentralization. Additionally, the firm also provided the details of the respective development.
In a recent blog post on its official web portal, the company pointed toward the likely increased real yield. It mentioned that the former version V2 chiefly focused on providing incentives for participation via SNX’s inflationary minting. On the other hand, the latest version V3 transitions from the respective model. It rather focuses on the distribution and generation of real yield through trading fees. The respective yield goes to the liquidity providers.
In addition to this, the new version introduces a burn as well as a buyback mechanism. In this, the trading charges will buy and eliminate the SNX tokens from circulation. This aligns with the incentives for holders and stakers of the SNX token. The new approach is in line with the targets of Synthetix for scaling a decentralized ecosystem of derivatives. According to Synthetix, the ecosystem operates on the company’s infrastructure and liquidity.
The Development Increases the Collateral Options
Moreover, the new version broadens the system with the inclusion of a series of assets as collateral. These assets take into account, $USDC, $ETH, $SNX, governance-approved tokens, and stataUSDC (yield-generating collateral). The growth of options concerning collateral will potentially add to the sUSD stablecoin’s scalability in the exclusive version.
Furthermore, the development also facilitates the impending migration and some supporting measures will start next week. One of them takes into account amplified incentives regarding the provision of liquidity for the sUSD/USDC pool. The Velodrome-based token pool will witness an increase of 10K OP coins per week. The platform asserted that the development comes as a crucial step to realize its vision of establishing a resilient, decentralized, and scalable ecosystem comprising derivative protocols.