Synthetix is taking off after a proposal to increase trade speed was approved.
Synthetix’s token SNX, fees generated by the protocol and volume are soaring after Synthetix Improvement Proporsal 120 passed, removing a previous buffer between trades of synthetic assets, called Synths and increasing trading speed.
Daily fees have jumped by a multiple of over 19 to $718,500 in the last month, making it the fourth-highest earning blockchain protocol tracked by cryptofees.info. The protocol ranked third in terms of fees on June 19, when SNX stakers earned over $1M.
Synthetix’s token is also soaring. SNX is up 56.5% to $2.92 in the past week.
At $124B, volume is also over 40 times larger than the $3M it was a month ago, according to a Dune Analytics query by Messari.
The majority of the trading volume is coming from 1inch, a decentralized exchange aggregator, according to data provided by Synthetix. 1inch leads all projects which facilitate Synth trading, having processed $769M of volume in the past week.
According to Kain Warwick, Synthetix’s founder, a proposal known as Synthetix Improvement Proposal 120 (SIP-120) has been key to the protocol’s recent momentum.
Proposal SIP-120, written by Warwick, Yearn founder Andre Cronje, and two other contributors, does away with what was a ten-minute waiting period when trading between Synths. The new and instant trade functionality is called an atomic exchange.
“Several months ago, SIP-120 was implemented allowing for atomic execution by using Uniswap as a secondary price oracle,” Kain Warwick told The Defiant. “After some further work to improve execution efficiency and coordination with integrators, 1inch began routing orders through Curve+Synthetix and volume took off.”
Warwick added that this was a feature for Ethereum’s Layer 1, and that Synth trades on Optimism, the Layer 2 (L2), are atomic by default.