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Synthetix Now Among Top-Earning Crypto Protocols After Atomic Swaps Take Off

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Synthetix is taking off after a proposal to increase trade speed was approved.

Synthetix’s token SNX, fees generated by the protocol and volume are soaring after Synthetix Improvement Proporsal 120 passed, removing a previous buffer between trades of synthetic assets, called Synths and increasing trading speed.

Daily fees have jumped by a multiple of over 19 to $718,500 in the last month, making it the fourth-highest earning blockchain protocol tracked by cryptofees.info. The protocol ranked third in terms of fees on June 19, when SNX stakers earned over $1M.

Top four crypto platforms by fees. Source: cryptofees.info
Top four crypto platforms by fees. Source: cryptofees.info

Synthetix’s token is also soaring. SNX is up 56.5% to $2.92 in the past week.

SNX token. Source: CoinGecko
SNX token. Source: CoinGecko

At $124B, volume is also over 40 times larger than the $3M it was a month ago, according to a Dune Analytics query by Messari.

Synthetix volume. Source: Dune Analytics
Synthetix volume. Source: Dune Analytics

The majority of the trading volume is coming from 1inch, a decentralized exchange aggregator, according to data provided by Synthetix. 1inch leads all projects which facilitate Synth trading, having processed $769M of volume in the past week.

Synthetix trading partners. Source: Synthetix
Synthetix trading partners. Source: Synthetix

According to Kain Warwick, Synthetix’s founder, a proposal known as Synthetix Improvement Proposal 120 (SIP-120) has been key to the protocol’s recent momentum.

Proposal SIP-120, written by Warwick, Yearn founder Andre Cronje, and two other contributors, does away with what was a ten-minute waiting period when trading between Synths. The new and instant trade functionality is called an atomic exchange.

“Several months ago, SIP-120 was implemented allowing for atomic execution by using Uniswap as a secondary price oracle,” Kain Warwick told The Defiant. “After some further work to improve execution efficiency and coordination with integrators, 1inch began routing orders through Curve+Synthetix and volume took off.”

Warwick added that this was a feature for Ethereum’s Layer 1, and that Synth trades on Optimism, the Layer 2 (L2), are atomic by default.

Synthetix has also added perpetual futures in March, which the protocol’s Twitter account has cited as another reason for its recent momentum.

Warwick is aiming higher. He introduced a proposal on Twitter which he indicated would push Synthetix past Ethereum in terms of fees generated, as Uniswap did this week.

Read the original post on The Defiant