Synthetix Prepares for Multi-Collateral Perps on Arbitrum

• Synthetix seeks an extension to support Multi-Collateral Perps, attracting new users with diverse trading strategies.
• The launch of Multi-Collateral Perps on Arbitrum aims to enhance ecosystem engagement through flexible collateral options.

Synthetix has tweeted that it intends to request an extension of its original Long-Term Incentive Program (LTIP) award to facilitate the highly anticipated launch of Multi-Collateral Perpetuals (Perps) on the Arbitrum network.

This novel tool will enable users to trade perpetuals with a range of collateral alternatives, including tBTC, ETH, USDe, and SOL.

Synthetix is requesting an extension to its original LTIP grant to support the launch of Multi-Collateral Perps on Arbitrum.

This feature will allow users to trade Perps using tBTC, ETH, USDe, and SOL as collateral.

We expect this onchain innovation to attract many new users…

— Synthetix (@synthetix_io) September 6, 2024

Multi-Collateral Perps Set to Transform Arbitrum with Flexible Strategies and Extended Incentives 

The ability to use different assets as collateral is expected to attract a diverse range of traders, each with their own strategy that can benefit from this new feature.

According to Synthetix, Multi-Collateral Perps on-chain innovation is worth the wait because it has the potential to drastically alter the entire Arbitrum ecosystem. By aligning the old LTIP incentives with the new product and somewhat extending the period, Synthetix hopes to maximize the launch’s effectiveness and user uptake.

Synthetix has been aggressively preparing for this important launch, laying the basis through previous initiatives. For instance, as Crypto News Flash (CNF) previously reported, Synthetix launched the USDx liquidity pool on Arbitrum, which was crucial in promoting user engagement prior to the Synthetix Perps launch.

This plan included giving 3,000 SNX tokens per week to incentivise Arbitrum liquidity providers, thereby priming the network for the new feature.

The success of these activities, together with increased interest in Multi-Collateral Perps, demonstrates Synthetix’s deliberate strategy to expand its platform and build excitement for the launch.

However, not every development has been favorable for Synthetix. In July, we has reported that a whale had placed 1.068 million SNX tokens on Binance. This move resulted in a $216,000 loss in just a few hours, as the SNX price fell further. Despite this setback, Synthetix remains resilient and committed to its long-term aims.

At the time of writing, SNX tokens are trading at roughly $1.29, up 2.70% over the last 24 hours, with a market cap of around $423.73 million.