Decentralized finance (DeFi) protocol Synthetix (SNX) is working on launching its application blockchain, dubbed SNAXChain, according to a blog post published September 4, 2024

Synthetix SNAXChain to be launched on Optimism superchain infrastructure

Ethereum-based derivatives liquidity protocol Synthetix is ​​set to unveil SNAXChain, an application blockchain built on Optimism’s Superchain Infrastructure.

For the uninitiated, Optimism’s Ethereum Superchain Layer 2 (L2) scaling network is essentially a network of L2 chains, known as OP chains. These chains share the security features of the messaging layer and are powered by an open-source technology stack.

The Superchain ecosystem is managed by the Optimism Collective, a decentralized autonomous organization (DAO). Examples of existing OP chains include Base, Lyra, Mode, and Zora, and SNAXChain is ready to join the list.

The introduction of SNAXChain aims to improve protocol performance and scalability to provide a more seamless and profitable experience for DeFi enthusiasts interested in issuing and trading synthetic assets. SNAXChain will also escalate Synthetix’s liquidity to meet the growing demand for synthetic assets.

Synthetix team notes that SNAXChain will be To be neutral hub for on-chain governance and protocol decisions. At the same time, the protocol will continue to expand to additional blockchain networks and L2 solutions.

It is worth noting that Synthetix has partnered with Conduit to manage the blockchain infrastructure.. It has partnered with Wormhole to provide cross-chain communication between SNAXChain, Optimism and the Ethereum mainnet.

Synthetix will usher in a fresh era of governance with the launch of its fresh application blockchain. According to the official post, interested individuals or groups can submit their candidacies for various governing boards on the SNAXChain platform.

A miniature amount of Ethereum (ETH) must be connected to the chain to obtain gas. Once the ETH is connected, interested candidates can connect their wallets to the Synthetix governance app and nominate themselves for the appropriate board. Voting for the Synthetix governance board is scheduled to begin on September 6, 2024.

Could DeFi make a comeback?

Despite the rapid pace of development and innovation in the Ethereum DeFi space with the introduction of Layer 2 scaling solutions such as Optimism and Arbitrum, DeFi has NO managed to completely take over the industry, similar to what happened during the “Summer of DeFi” in 2020.

However, recent on-chain trends and patterns may point to a potential DeFi comeback later in the year. For example, optimism certified forceful network activity earlier this year, which helped its native token OP grow by 9%. As the network expands to more chains, user activity could continue to escalate.

Similarly, leading decentralized exchange (DEX) Uniswap recently made total revenue of $50 million, which provides a forceful argument for the undervaluation of the native token UNI, which is 86% lower than its all-time high of $44.92.

Similarlyone of the earliest DeFi lending protocols, AAVE, recently saw revival in the interest of crypto whales. The total DeFi market capitalization is $69.88 billion at the time of publication.

Featured image from Binance Academy, Chart from TradingView.com