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Derivatives veteran "Cyclonus", can SynFutures ignite the "Blast Summer" of on-chain derivatives?

Derivatives veteran "Cyclonus", can SynFutures ignite the "Blast Summer" of on-chain derivatives?

BlockBeats-Article2024/03/28 04:19
By:BlockBeats-Article
Original source: SynFutures


Less than a month after its launch, the transaction volume soared more than 90 times. TVL has become the leader of Blast derivatives. It is the latest SynFutures The three most intuitive labels.


The derivatives track has always been one of the sexiest on-chain narratives, and as the SynFutures V3 version launched simultaneously with the Blast mainnet, In less than four weeks, growth has been rapid. The growth rate of trading volume has exceeded 9,400%, far surpassing established leaders such as dYdX and GMX. This article will take an in-depth review Analyze why SynFutures has received the attention and influx of market funds, and whether it can open up a new valuation space with the dual narrative of "derivatives" + "Blast Summer" in the future, as well as the potential dividends behind it.


Behind the rise of Synfutures with daily trading volume exceeding GMX


From a certain perspective , in fact, SynFutures has always been regarded as a "veteran" in the field of DeFi derivatives that has passed the test of time and market:


As early as 2021, the industry's response to the on-chain When it was still unclear which paradigm should be used to trade derivatives, SynFutures pioneered a permissionless contract market model that allowed anyone to add liquidity through a single currency and list it in 30 seconds, becoming one of the many on-chain derivatives currently available. One of the widely adopted universal standards.


This is inseparable from the SynFutures team’s comprehensive background in international first-line investment banks, Internet companies and crypto OGs. In addition, it has just completed a new investment of US$22 million in October 2023. A round of financing, including Pantera Capital, SIG, HashKey Capital and other top investment institutions.


The previous $14 million Series A financing completed in June 2021 also included Polychain Capital, Framework Ventures, Bybit, Wintermute, CMS, Kronos and IOSG Ventures With leading VC players participating in the investment, the cumulative financing amount as of the time of publication has exceeded US$38 million, making it unique in the field of decentralized derivatives.


Derivatives veteran


Dune statistics also show that as of March 26, 2024, SynFutures has been running smoothly for more than 2 years, with more than 110,000 users, and a cumulative transaction volume of more than 23 billion USD (V1+V2), with a total number of transactions reaching 8.12 million, and it has been active as the leading decentralized derivatives exchange to this day.


On March 1, the SynFutures V3 platform was officially launched on the Blast mainnet, and the transaction volume has been rising. On March 21, it hit a record of US$623 million. A new high record, as of March 26, the cumulative transaction volume of the V3 version alone was close to 5.8 billion US dollars.


In other words, in less than a month since its launch on Blast, the cumulative transaction volume ofV3 version has been equivalent to that of more than two years. 25% of the total transaction volume in V1+V2.


Derivatives veteran


In contrast, we may You can more intuitively feel how fierce the growth momentum of Synfutures V3 version is:


As we all know, GMX is the largest DeFi protocol in the Arbitrum ecosystem and is currently the TVL of the entire network. The highest on-chain derivatives market (DeFiLlama data), but its daily trading volume is currently lower than Synfutures -As of the time of publication, GMX’s 24-hour trading volume is $270 million, while Synfutures V3’s daily trading volume is approx. to $375 million.


Among all on-chain derivatives protocols, Synfutures also leads the growth rate of the same period by at least an order of magnitude,


In the 7-day dimension, the growth rates of dYdX and Hyperliquid, as leaders, were -18% and -42% respectively, while Synfutures was 67% in the same period;


On a monthly basis, the growth rates of dYdX and Hyperliquid, the leaders, were 77% and 91% respectively, while Synfutures’ growth rate exceeded 9400% in the same period;


From this perspective, after the launch of the V3 version on Blast, the growth momentum of Synfutures has been extremely fierce, almost leaving other decentralized derivatives far behind. It seems that it has finally ushered in its own moment of wind.


Derivatives veteran


Synfutures V3 enters the second half with derivatives?


In fact, in the current mature financial market, derivatives trading is higher than spot trading in terms of liquidity, capital volume and transaction scale. The Crypto world has confirmed this market rule at least in the CEX field:


As early as 2020, CEX derivatives trading represented by contract futures began to replace Spot trading has gradually become the dominant market. Coinglass data shows that in the past 24 hours, the daily trading volume of the top five CEX contract futures has reached tens of billions of dollars, and Binance, the leader, has exceeded 80 billion U.S. dollars.


Derivatives veteran


CEX Derivatives One Day The trading volume is equivalent to the spot trading volume for a week - combined with The Block data, the total single-day trading volume of Binance derivatives is equivalent to 16% of the total monthly spot trading volume in February ($506.2 billion).


But on the chain, the spot trading volume of DEX represented by Uniswap still greatly crushes decentralized derivatives transactions such as dYdX The transaction volume of the protocol, even GMX, which is regarded as the "veteran leader" of the on-chain derivatives protocol, TVL, is only less than 750 million US dollars, ranking around 40th among all categories of DeFi protocols in the long term.


In the final analysis, the development of on-chain derivatives protocols such as GMX and dYdX, which have been at the forefront for a long time, is far from keeping up with the changing narrative - DeFiLlama statistics It shows that as of March 12, 2024, the total scale of DeFi on the entire network has exceeded US$100 billion, but the total volume of derivatives protocols is still less than US$30 billion, accounting for less than 30%.


Therefore, the derivatives market, as the most imaginative narrative of the on-chain DeFi track, is in urgent need of new ideas to break the situation.


For today's Blast ecosystem, SynFutures, with its surge in transaction volume, is the best example, which may have shown that with the performance and cost advantages of L2, combined with Blast's own traffic effect and many use cases of derivatives themselves that are limited by the Ethereum main chain can be gradually implemented.


Therefore, with the help of the Blast airdrop in the future, the narrative of on-chain derivatives seems to have ushered in a period of development opportunities at the right time. Among them, how to first lay out the possible seed players in this wave of "Blast Summer"?


From a product perspective, "old and latecomer" DeFi protocols like SynFutures undoubtedly have the most advantages:


On the one hand, SynFutures developed Oyster AMM (oAMM) in V3, which combines the advantages of order book and AMM to maximize capital efficiency. This is accompanied by the increase in ecological TVL after the Blast airdrop. , it is easier to absorb the influx of funds;


On the other hand, as an old on-chain protocol, SynFutures has not yet issued coins, and users can While enjoying derivatives trading services, you can accumulate potential airdrop opportunities, thereby sharing the possibility of making big dividends from Blast and the on-chain derivatives track in the future;


Going back to the data level, Synfutures’ transaction volume to TVL ratio in the past 30 days has reached 12.7, which can be said to be one of the most underestimated projects in the on-chain derivatives track -Compared to GMX, which has issued coins , dYdX have ratios as low as 0.43 and 3.03 respectively, making them simply the most cost-effective seed players.


How to use SynFutures to "eat more from one fish" in the Blast ecosystem?


As an ordinary user, what opportunities are there to achieve "one fish to eat more" in the Blast ecosystem through SynFutures, and maximize the sharing of Synfutures (V3) and the early days of Blast? dividend?


On the day mentioned above that the V3 version was launched, that is, March 1, Synfutures simultaneously launched a triple point event (Blast Points + Blast Big Bang Championship points + SynFutures O_O points), and the points competition is expected to last 3 to 4 months.


What does it mean? That is to say, users who participate in the interaction of SynFutures V3 at this time can receive triple rewards including Blast points, Blast Gold and SynFutures points at the same time.


There are rumors that the Blast public chain has the highest value is Blast Gold. In the first round of Gold distribution officially announced by Blast last Saturday, SynFutures Obtained the second largest number of Gold incentives in the entire ecosystem, and received nearly 500,000 gold at one time. The market price for Blast Gold is generally US$5-10 per piece. SynFutures announced earlier that 100% of Blast Gold will be awarded to users. For Blast Gold alone, the value of SynFutures’ first round of rewards is already between US$2.5 million and US$5 million. On the day this article was written, SynFutures TVL was US$32 million, and the trading volume on that day was US$380 million. The official has announced that 50% of the Blast Gold allocation will be awarded to liquidity providers (makers) and the other 50% to traders (takers). We will continue to pay attention to the details of the project's allocation of various rewards.


The allocation of Blast Gold by SynFutures is closely and positively related to the number of SynFutures O_O points itself. In one sentence: the more SynFutures O_O points, the more Blast Gold.


Interestingly, SynFutures launched the Trading Grand Prix trading competition with a prize pool of US$500,000 on March 12, and the team is launching this Blast points competition and trading At the same time as the competition, it also stated that it was studying token issuance, saying that the points plan will last for 3-4 months, and hinted that there will be plans for token issuance and airdrops by then.


The latest news is that the project team will conduct the first contract snapshot on April 9, which may mean good things related to token airdrops. It's close, so the window period is constantly shortening, so you still need to participate in the interaction as soon as possible.


Summary


In 2020, we have experienced the explosive growth of the DeFi world, among which derivatives The track (futures, options, synthetic assets, etc.) was once regarded as the most promising sector to take over DeFi and the entire industry. However, what is unsatisfactory is that the performance limitations of Ethereum have not brought expectations to the derivatives track. The east wind among them.


The wheel of time points to the beginning of 2024. The recently activated Dencun upgrade has improved the L2 cost-effectiveness ratio, giving people a vague sense of the decentralized derivatives track. A screw has become loose.  


Especially as the strongest catfish in the new L2 war, the follow-up Blast will be accompanied by the inflow of funds and the increase in market attention. If If it can bring incremental value to the derivatives track and share the track to make big dividends, then the on-chain derivatives association may really be just one tipping point away from the "Cambrian Explosion" this time.


From this perspective, Synfutures, as a veteran player and a leading newcomer, whether it is superimposed on its fierce growth rate of derivatives, or HashKey Capital and other front-line institutional investment backgrounds are gradually accumulating potential, and there is a high probability that they will take a completely different pace.


In 2024, Whether we believe in the Blast ecosystem or the imagination space of the derivatives track, perhaps we should give enough attention to seed players like Synfures s concern.


This article is from a submission and does not represent the views of BlockBeats

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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