Synthetix mitigates counterparty risks via Infinex derivatives exchange

Synthetix, a decentralized finance (DeFi) project, is expanding its products by introducing a new derivatives exchange called Infinex. This exchange will cater to both new and experienced traders and will have features similar to centralized exchanges (CEX), like a non-custodial central limit order book.

Currently, Synthetix operates Kwenta, a derivatives decentralized exchange (DEX) on Optimism. However, the founder, Kain Warwick, has identified some issues with the existing platform. Traders have to bridge assets to the layer-2 rollup and exchange them for sUSD, Synthetix’s stablecoin, before they can start trading. Additionally, each order or cancellation on the platform requires a wallet signature and incurs a small fee.

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The goal of Infinex is to address these issues and show that decentralized perpetuals (Perps) can compete directly with centralized exchanges. Warwick highlights the advantages of being on a non-custodial DEX and jokingly mentions the counterparty risks associated with centralized exchanges like FTX.

Infinex will provide a user-friendly experience similar to platforms like Binance. Traders can access it using a simple username and password while maintaining a non-custodial setup. Each user will have a unique public-private key pair stored locally in the browser for signing trade orders, separate from fund withdrawals.

The technical details of Infinex were not disclosed, but the core developers are responsible for its implementation. The launch of Infinex is expected to coincide with the release of Synthetix’s version 3 of its perpetual futures trading system in the coming months.

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