Synthetix takes counterparty risk with Infinex's derivatives exchange

The upcoming exchange, Infinex, will appeal to both novice and experienced traders by offering features similar to centralized exchanges (CEX).< /p> News Join us on social networks

Synthetix, a DeFi project in the crypto space, is preparing to expand its range of affiliate products.

Kain Warwick, the founder, has revealed plans to introduce a new derivatives interface called Infinex to Synthetix's decentralized trading infrastructure. The upcoming exchange, Infinex, will appeal to both novice and experienced traders by offering features similar to centralized exchanges (CEX), such as a non-custodial central limit order book.

While Synthetix already operates Kwenta, a decentralized derivatives exchange (DEX) on Optimism, Warwick has highlighted three key issues with the current platform. For example, traders are required to link assets to the layer 2 rollup and exchange them for sUSD, Synthetix's stablecoin used as margin collateral, before they can start trading.

In addition to the inconvenience, each order or cancellation on the existing platform requires the merchant's wallet signature, which incurs a minimal fee. In the blog post, Warwick emphasized that the goal is to eliminate any skepticism surrounding the ability of Decentralized Perpetuals (Perps) to directly compete with centralized exchanges.

Being on a decentralized non-custodial exchange offers advantages, and Warwick playfully pokes fun at the now-defunct FTX and other centralized exchanges in the blog post for their distinctive counterparty risks. Warwick sheds light on FTX's dramatic collapse last fall.

"It became incred...