Synthetix founder to launch decentralized exchange Infinex: poised to compete directly with centralized exchanges
Synthetix founder Kain Warwick announced the launch of the decentralized exchange Infinex to compete with centralized exchanges.
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What is Infinex?
Infinex is a decentralized perpetual contract exchange platform launched by Synthetix in 2020. Originally, the founder Kain Warwick wanted to name it "Infinex." Now, Warwick is planning to reintroduce this name for a new product aimed at improving user experience.
He mentioned that it is time to compete directly with centralized exchanges, now that the infrastructure is in place and the focus is on acquiring users. "We are changing our strategy to mimic the experience of centralized exchanges."
The new decentralized perpetual contract exchange, "Infinex," will also involve some "compromises" in its design. The compromise referred to by Kain Warwick is the L2 infrastructure Optimism, which in its design requires a lengthy seven-day withdrawal time for assets on the blockchain.
Infinex Account and Trading Design
Kain Warwick stated that to enhance user experience, Infinex will generate a new pair of public and private keys for each user and store them in the client's browser. However, this private key cannot withdraw funds; it is only used to sign transactions in the account on Optimism.
When traders select a deposit, the system will generate a unique deposit address for them. They can send USDT, USDC, or sUSD to this deposit address. These funds will be deposited into a margin pool controlled by a governance organization.
Once users deposit funds, Optimism will create a new margin account. Each user has a unique margin address, allowing traders to verify their margin on the chain at any time.
Traders can use USDC or USDT as margin, and Infinex will provide them with sUSD to trade. Users can also directly invoke the emergency withdrawal function, allowing withdrawals even if the account relay is unavailable.
When users want to trade, they can choose a trading market, select leverage, and click "Trade." Since the order is signed with the user's key in the browser, the order will be immediately routed to Optimism without additional steps or signature.
Infinex will also offer two interfaces: simple mode and professional mode.
Infinex Governance: No Token Issuance, Using SNX
Kain Warwick mentioned that Infinex will not issue its token; governance over Infinex will be conducted using the SNX token.
Infinex Revenue Sources
- Transaction fees
- Integration fees from Synthetix Integrators program
- Fees from SNX LP
All generated revenue will be used to accumulate more SNX.
Following the release of this news, SNX also saw a significant increase in value.
