Synthetix Network has made a notable return to the Ethereum mainnet, reintroducing its core trading product after a hiatus that began in 2022. The announcement, made via a blog post on December 19, highlights the launch of its canonical perpetual futures decentralized exchange (DEX), a move that signals confidence in the latest scaling upgrades that enhance the viability of layer-1 solutions for perpetual contracts.
The relaunch is set to commence with a private beta phase, allowing limited access to a select group of users. Initially, the platform will support markets for Bitcoin, Ethereum, and Solana, offering traders leverage of up to 50x. The first 500 users have been chosen from among contributors, stakers, and experienced traders, with each user permitted to deposit a maximum of 40,000 USDT. Importantly, withdrawal functionality will not be available at launch, with expectations for it to become operational approximately one week later, contingent on the team”s assessment of on-chain deposit activities.
The current iteration of the Synthetix platform is described as an early version, with plans for the introduction of new markets on a weekly basis. Enhancements will include increased leverage limits, higher deposit caps, and additional trading features rolled out over the forthcoming months. This return to the Ethereum mainnet follows an internal team restructuring, with many members joining within the last year. Founders Kain Warwick and Jordan Momtazi have resumed active leadership roles within the organization.
The decision to return to Ethereum stems from challenges faced during the previous period on layer-2 networks. Synthetix originally departed the Ethereum mainnet in 2022 primarily due to high gas fees that impeded high-frequency trading. Over time, the team recognized limitations within the layer-2 environments of Optimism, Arbitrum, and Base. The new framework employs off-chain order matching while ensuring on-chain settlement, allowing user funds to remain on Ethereum. This approach guarantees that trades are settled directly on layer-1, facilitating permissionless withdrawals.
Factors such as reduced gas fees and recent Ethereum upgrades, including Fusaka, played a pivotal role in the decision to migrate back. The Synthetix team believes that Ethereum”s current infrastructure can support more sophisticated trading strategies without necessitating asset bridging or liquidity division across different networks. Warwick noted that the strategic shift is based on extensive experimentation, asserting that traders, capital, and liquidity gravitate toward environments where custody, settlement, and composability are most robust.
Looking ahead, Synthetix is poised for significant expansion through 2026. Planned developments include multi-collateral margin capabilities, innovative order types, markets for real-world assets, and deeper integrations with other Ethereum-based decentralized finance (DeFi) applications.
