Ethereum's Layer 1 Lacks a Perp Dex. Synthetix Intends to Change That - Ep. 926
Episode publishedPodcast: UnchainedUnchained
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Today, Ethereum still has the most assets, the most stablecoins. It's got more margin assets on it than any other chain. And so by removing the need to bridge off Ethereum and allowing people to just deposit margin into a contract that is running on the l one, we think that it'll be far easier to attract liquidity and far easier to attract traders.
Hi, everyone. Welcome to Unchained, your no hype resource for all things crypto. I'm your host, Laura Shin. Binance is the world's number one crypto exchange, trusted by over two ninety million users. With industry leading liquidity, security, and a wide range of digital asset products, Binance is the place to buy, sell, trade, and earn crypto. Download Binance today to get started. Today's guest is Kane Warwick, founder of Infinix and Synthetics. Welcome, Kane.
Hey, Laura. Good to be back.
You are joining the PerpDex party. You're about to launch PerpDex on Ethereum as if we don't have enough of them already. Not that I'm saying we we have too many. I'm just kidding. So explain why you've decided to launch a PerpX on Ethereum.
The goal of Synthetics, from maybe 2019 was to build derivatives. And, you know, PerpX, at the time, you know, that Synthetics originally launched were dominated by BitMEX. All the exchanges started supporting perps over the course of that cycle. And we launched alongside d y d x, one of the first perp decks. You know, the the challenge of building a perp decks was huge, I would say. Right? And and one of the things that we had to do was to to move to an l two. So we moved to Optimism to be able to support the PerpDex, but now we're coming back to Ethereum. And there's a long story there. So,
So talk about when you say that there's a long story there. Explain, like, kind of the trajectory and, like, why you decided to come back now.
So in in 2019, I saw the first demo, the UniPig demo, which was Uniswap and Optimism. And that was around the time when congestion was first becoming an issue on l one. And so we looked at that and said, okay. You know, this is only going to get worse when, you know, the l one cannot keep up with the demand that that, you know, is there for for block space. And so optimistic roll ups were the solution that I think the Ethereum community rallied around. I did, at the time, have some concerns about fragmentation, and so I pushed really hard for the Ethereum community to kind of rally around a si
Okay. And, know, so you had your comments targeted to synthetics, but would you say they also apply to, like, d y d x or GMX and, like, other previous, you know, PerpX incarnations on Ethereum?
Yeah. So, you know, d y d x moved to Cosmos. You know, they they moved around a few different times. It was Starkware first. So, you know, d y d x was on Starkware and then StarkNet, and then they moved to Cosmos. And I think the lesson from almost every perp decks is that it is very challenging to attract liquidity if you're on an l two or, you know, a side chain or or something like that. Probably the only perp decks that has actually pulled this off is hyperliquid, and they're an l one. And so, you know, the combination of an l one and a perp decks is clearly the right combination of of kin
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