Synthetix Perpetual Volumes Hit Record $200M As Optimism Incentives Near
More Than 3.5M OP Tokens Will Be Distributed To Traders Over 20 Weeks
By: Tarang KhaitanDeFi News
Synthetix, a derivatives protocol with over $600M in total value locked, plans to distribute over $8M of Optimism’s governance tokens to active users of its perpetual swaps platform.
Daily trading volume on the protocol’s V2 iteration hit a record of almost $200M on Mar. 13, according to a Dune query.
Daily Trading Volume On Synthetix
Synthetix’s SNX governance token has doubled in value this year, outpacing a 40% rally in Ether.
ETH Price + SNX Price, Source: The Defiant Terminal
Traders will be rewarded based on various criteria such as fees paid, volume generated, and the amount of SNX, Synthetix’s governance token, staked.
Users with at least 2,500 SNX staked can further boost their rewards, with a maximum bonus of 15% for those staking 20,000 SNX or more.
The program is scheduled to go live in the first week of April and run for 20 weeks.
During a ramping-up period, 50,000 OP tokens will be distributed in the first week and 100,000 OP in weeks two and three. This will increase to 200,000 OP per week for the remainder of the program.
The tokens will come from the Synthetix treasury, which received a grant of 9M OP from the Optimism Foundation in July 2022.
Synthetix Perps V2 went live in December 2022, with the main focus of the upgrade being improved capital efficiency. Trading fees also saw a reduction to 5-10 bps.
Perpetual futures are crypto-native instruments that are akin to futures contracts but without fixed expiry dates.
On Mar. 13, nearly $200M in trades were processed, generating almost $157,000 in fees for the protocol. The overwhelming majority of trading activity took place on Kwenta, which offers up to 25x leverage on selected assets.
Synthetix’s perpetual product competes directly with GMX, a perpetual swap exchange operating on the Arbitrum and Avalanche networks.
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GMX has processed over $110 billion in total volume since its inception, which has generated nearly $170M in fees for the protocol.