Synthetix to Shut Down Its Layer-2 Deployments on Base, Refocus on Ethereum
- DeFi protocol Synthetix will shut down its Layer-2 deployments on Base by July 7.
- The team cited “fragmented liquidity” as the reason for the pivot back to Ethereum mainnet.
- The strategic shift comes after the price of the native SNX token has fallen by 83%.
The decentralized finance (DeFi) protocol Synthetix has announced a major strategic pivot, setting a July 7 target to phase out all of its Layer-2 deployments on the Base network. The derivatives protocol stated it will now consolidate its focus on the Ethereum mainnet, a surprising move that goes against the broader industry trend of L2 expansion.
The decision comes after the project’s native token, SNX, has suffered from significant bearish pressure and a lack of liquidity for several months.
Why the Protocol Is Refocusing on Ethereum Mainnet
According to Synthetix, the decision to phase out its L2 deployments stems from ongoing infrastructure instability and fragmented liquidity. Meanwhile, the liquidity provider (LP) vaults have stopped accepting deposits because of the latest decision.
Related: sUSD Crashes Below $0.77: Synthetix Faces Challenges After Major Protocol Changes
All existing …
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Synthetix to Shut Down Its Layer-2 Deployments on Base, Refocus on Ethereum
- DeFi protocol Synthetix will shut down its Layer-2 deployments on Base by July 7.
- The team cited “fragmented liquidity” as the reason for the pivot back to Ethereum mainnet.
- The strategic shift comes after the price of the native SNX token has fallen by 83%.
The decentralized finance (DeFi) protocol Synthetix has announced a major strategic pivot, setting a July 7 target to phase out all of its Layer-2 deployments on the Base network. The derivatives protocol stated it will now consolidate its focus on the Ethereum mainnet, a surprising move that goes against the broader industry trend of L2 expansion.
The decision comes after the project’s native token, SNX, has suffered from significant bearish pressure and a lack of liquidity for several months.
Why the Protocol Is Refocusing on Ethereum Mainnet
According to Synthetix, the decision to phase out its L2 deployments stems from ongoing infrastructure instability and fragmented liquidity. Meanwhile, the liquidity provider (LP) vaults have stopped accepting deposits because of the latest decision.
Related: sUSD Crashes Below $0.77: Synthetix Faces Challenges After Major Protocol Changes
All existing …
The post Synthetix to Shut Down Its Layer-2 Deployments on Base, Refocus on Ethereum appeared first on Coin Edition.
Read More
Spot XRP ETF Set to Start Trading in Canada This Week After Regulatory Nod, Token Up 7%