Synthetix, a decentralized finance (DeFi) protocol, is planning to expand its range of affiliate products by introducing a new derivatives front-end called Infinex. Kain Warwick, the founder of Synthetix, revealed the upcoming exchange as part of the protocol's decentralized ized trading infrastructure . Infinex aims to provide a user-friendly experience for both novice and experienced traders by offering centralized exchange (CEX)-like features, including a non-custodial central limit order book.
While Synthetix already operates the derivatives decentralized exchange (DEX) called Kwenta on Optimism, Warwick acknowledged certain limitations with the existing platform. Traders using Kwenta need to bridge assets to a Layer-2 Rollup and convert them to sUSD (Syn thetix's stablecoin used as margin collateral ) before being able to start trading. Additionally, every order or cancellation on the current platforms requires the trader's wallet signature, incurring small fees. Warwick emphasized the goal of addressing these challenges and ensuring that decentralized perpetual contracts (Per ps) can directly compete with centralized exchanges.
Warwick also highlighted the advantages of joining a non-custodial DEX and playfully criticized now-defunct FTX and other centralized exchanges for their unique counterparty risk. He referred to the collapse of FTX in 2022 as evidence of the risks associated with centeralized exchanges. Warwick believes That the obstacles hindering the growth of Synthetix Perps can be overcome with a new approach.
The planned DEX, Infinex, aims to cater to traders familiar with platforms like Binance, providing access through simple usernames and passwords while maintaining a non-custodial setup. Warwick explained that each user on Infinex will have a unique public-private key pair generated , stored locally in the browser, and used solely for signing transaction orders, not for fund withdrawals.
The technical implementation details of Infinex were not disclosed in the announcement, with Warwick mentioning that they have been delegated to the core developers. The launch of Infinex is expected to coincide with the release of version 3 of the Synthetix perpetual futures trading system, which is anticipated to occur in the coming months.
