SNX Leads the DeFi Bounce as Team Focuses on Layer 2 Developments and Evolution of ETH Wrapper
Since last weekend, SNX has been pumping. In a matter of five days, the price of the $1.8 billion market cap coin has jumped over 93% to $12.48.
“Since hitting lows on June 24, DeFi tokens are enjoying a strong bounce. COMP, ALPHA, SNX, and AAVE lead the way… The next couple of weeks will be telling for DeFi, and the crypto market in general.”
Following Synthetix founder Kain Warwick’s return, the project released a June monthly update.
Talking about Layers 2 developments in terms of deployment of Synthetix on the Optimistic Ethereum L2, which “will catalyze an enormous leap forward for the protocol,” the team isn’t nailing down any precise timelines but noted that every bug that gets surfaced and addressed now during the beta phase is an issue that won’t be surfaced with a public main-net, so there’s that.
Synthetic futures were also launched on private L2 testnet last month with deployment to Kovan soon and then OE mainnet after that.
Today, Synthetix announced that starting this week, users will have to pay gas fees to transact on L2. Though cheaper 50-100x than L1, Optimism will no longer be relaying user withdrawals from L2.
It will also be rewarding those users who have already (as of July 6) migrated to L2 by distributing a total of 30 WETH to eligible wallets that should be enough to cover several mint/burn/claim transactions.
One of the more interesting developments recently has been the evolution of the ETH wrapper since its launch, noted the team in the update. The ETH wrapper, minting sETH with Ether directly, now contains 175,000 ETH after a slow rollout in May. This has generated almost $2 million in minting fees for SNX stakers.
Wrapper contracts, the team notes, are an extremely useful primitive that can be used to introduce external collateral into the system besides ETH and BTC-backed loans and satisfy market demand for synths to stabilize synth pegs.