Synthetix turns on layer-two alpha, launches Olympics betting on options platform

Decentralized derivatives and synthetic asset trading protocol, Synthetix, has launched trading on the Optimistic Ethereum layer two scaling platform.

The long-awaited launch was announced by the Synthetix protocol exchange Kwenta on July 30. It enables the exchange to offer faster transactions and lower fees using optimistic rollup technology.

Initially, there will be just four synthetic assets available for trading on layer two — sUSD, sETH, sBTC and sLINK. The data collected from this alpha launch and testing phase will enable the protocol to optimize synth trading on layer two and prepare for the beta launch, the announcement stated.

Trading on layer two will offer users an estimated 50X reduction in gas fees and “blazing fast transaction speeds.”

The Synthetix community will monitor early performance on the scaling platform and gradually vote in additional synthetic assets for trading as they see fit.

Optimistic Ethereum (OΞ) uses a rollup technology that assumes all of the transactions are correct instead of verifying each one. Users only need to intervene if they see an incorrect transaction where they can submit a “fraud proof.”

Earlier this month, Uniswap announced the launch of its version 3 on the Optimistic Ethereum platform.

In a related development, the Synthetix-based Thales platform has just launched. Thales is a DeFi platform providing binary options style trading which allows traders to speculate on the price movement of the underlying market or crypto asset. There are two possible outcomes which is why they are considered binary.

Related: Thales raises $2.5M for binary options platform in Synthetix ecosystem

The Thales DApp offers more than 60 different assets, including cryptocurrencies, commodities, equities and index products, to create markets, mint binary options tokens and trade them on the platform.

It has introduced some trial Olympics sports markets which enable users to bet on variables such as “Will the USA win the most gold medals?” or “Will Australia’s men’s basketball team win the gold medal?” The answers are binary with a yes or no outcome which can be wagered on with a sLONG or sSHORT token.

Still on the subject of layer two, the Loopring DEX has announced a collaboration with layer two solutions provider StarkWare. The partnership has introduced a cross-L2 automated market maker that shares liquidity across layers called dAMM, with the “d” standing for “decentralized.” Loopring has predicted that the platform will become “one of the most fundamental primitives to scaling DeFi.”


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Thales raises $2.5M for binary options platform in Synthetix ecosystem

A decentralized finance project providing binary options style trading has just completed a $2.5 million seed round.

Binary options are financial instruments that allow traders to speculate on the price movement of the underlying market or cryptocurrency. There are two possible outcomes which is why they are considered binary.

At launch, Thales will support markets for more than 60 different assets including cryptocurrencies, commodities, equities, and index products, before expanding into sports markets. At the time of writing, there was no mention of the specific launch date.

The strategic investment round for the Thales platform was led by Framework Ventures and Apollo Capital. There were several other venture capital contributors including LD Capital, Honey DAO, the LAO, Zee Prime Capital, IOSG Ventures, D64 Ventures, and Koji Capital.

The announcement added that there will be a two-year token vesting strategy by the protocol’s strategic partners starting at the token generation event.

The funding round was completed using ‘DAO-first capital formation’, a method proposed by Synthetix founder Kain Warwick earlier this month. This approach enables the project to establish token holder-based governance usi a Decentralized Autonomous Organization much sooner than going through legal structures and processes.

Thales is a Synthetix ecosystem project building support for trading binary options and on-chain derivatives on the Ethereum network. In late 2020, core contributors at Synthetix began to seek an external team to develop a binary options trading platform that would become Thales. It received seed funding from the SynthetixDAO to kick start the project.

Thales token distribution model will be weighted towards active Synthetix community members with 35% of the 100 million tokens claimable by SNX stakers with minted debt. Another 45% will go toward various incentive programs and yield farms and 20%, or 20 million Thales tokens, will be allocated to the current and future team.

The Thales airdrop will likely happen in August and September according to Synthetix core contributor, Jordan Momtazi.

Related: Blockchain startup offers peer-to-peer contracts for market deals

Thales intends to venture into the realm of on-chain sports betting through a partnership with Chainlink which will be providing the oracles and data feeds.

In 2019, Cointelegraph reported that U.S. regulators were growing concerned about the emergence of binary options scams for this high-risk derivatives trading method emerging in the crypto sector.


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