blockworks.co
Derivatives protocol SynFutures will soon launch a V2 version of its derivatives decentralized exchange.
The initial V2 launch will be on Polygon, with plans to eventually expand the decentralized exchange, or DEX, to Arbitrum, Polygon zkEVM and zkSync.
SynFutures V1 has been live for over a year and a half but has recently been sunsetted in preparation for the launch of V2, Matthew Liu, the co-founder of SynFutures told Blockworks.
V2 of the DEX will feature perpetual swaps, perpetual futures, and improved UI/UX as well as an upgraded automated market maker (AMM), Liu said.
“The idea is to make derivatives on-chain and available and make the experience much easier for an average user,” he said.
Introducing DAO futures
Mark Lee, a partner and chief marketing officer of SynFutures, notes that one of the main differentiators of SynFutures compared to other crypto derivative DEXs is its focus on long-tail assets.
“We support pretty much any token, it doesn’t have to be majors like BTC or ETH — if there is an obscure token that is gaining popularity we allow the freedom for anyone to come here and list that token that is gaining popularity,” Lee said.
In traditional derivatives trading DEXs, a core team still decides what assets can be listed, and Lee says that this is SynFutures’ attempt at democratizing listing and trading assets.
The introduction of V2 will also introduce a new feature called “DAO futures,” Liu said.
“This is basically coin margin futures, or coin margin perp, where we designed the AMM with a single token liquidity provision model,” he said.
This means that DAOs or projects can use their token to create liquidity pools for their token against cryptocurrencies such as ETH, USDC or USDT without the need for pairing it with these tokens.
“This reduces the barriers of entry for long tail asset liquidity creation in the derivatives layer,” Liu said.
An example of this in practice, Lee explains, is when a project may have a decent-sized community and want to provide its token holders with utility.
“What you can do is use DAO futures and launch trading pairs BTC against [your own native token]. You provide the liquidity, bring more people into your ecosystem and it gives us liquidity for these pairs, and keeps your users within your own asset,” Lee said.
Anyone will be able to provide liquidity to existing trading pairs or those listed by themselves. In return, these liquidity providers will be able to get a share of the trading fees proportionate to their contribution to the pool, Lee noted.
“If the liquidity I provided as an LP makes up 50% of the total pool, then I take 50% of all fees generated by that trading pair,” he said.
On SynFutures LPs will get over 80% of the trading fees — with the exact ratio at 5:1.
Improved UX/UI
Another important feature that will be part of the public beta launch of SynFutures V2 launch will be the major improvements made to the user interface of the product.
“UI and UX is one of the most important aspects of DeFi in general because in the existing ecosystem, projects really cater to super DeFi native users — but this is a very small community,” Lee said.
In order to cater to a larger user base, Lee said SynFutures V2 is designed so that it will be easy to use for everyday users.
“Accessibility means making it more approachable, making it streamlined. making it user friendly and highly intuitive so that anyone can get started,” he said. “This is our way of trying to expand the DeFi ecosystem beyond the handful of DeFi degens that exist in this space today.”