Synthetix has announced that it will transition its perpetual markets on the Arbitrum network to a close-only mode.
Synthetix has announced that it will transition its perpetual markets on the Arbitrum network to a close-only mode. Effective immediately, this change prohibits traders from opening new positions or increasing existing ones.
This strategic decision is part of Synthetix’s broader initiative to consolidate its operations and concentrate efforts on Coinbase's Base network.
The closure of the Arbitrum perpetual markets coincides with the sunset of USDx on the same platform, a key component for perpetual trading. To ensure stability and liquidity, the Synthetix Treasury has begun purchasing USDx from the market and is developing a wrapper.
In a statement, Synthetix emphasized that this move aligns with a shift in its product strategy, aiming for vertical integration rather than to function solely as a platform.
The decentralized perpetual futures trading platform, which allows users to trade synthetic crypto with leverage, previously operated on both Arbitrum and Base networks.
In the past month, Synthetix v3 recorded a trading volume of $274 million on the Base network, while the Arbitrum deployment saw a significantly lower volume of $86.2 million. Synthetix is encouraging liquidity providers on Arbitrum to migrate their positions to Base, where they will receive additional incentives for a limited time.
While existing positions on Arbitrum will remain active during the deprecation process, traders can still close or reduce their positions at any time. Furthermore, Synthetix is integrating projects acquired within its ecosystem, including Kwenta and TLX, into a cohesive native trading platform.
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