Ethereum's Layer 1 Lacks a Perp Dex. Synthetix Intends to Change That

Synthetix is launching an L1 PerpDex on Ethereum, Infinex, to attract liquidity and traders by removing the need to bridge assets and leveraging a hybrid off-chain order book with on-chain margin and liquidation engines.

• Infinex is launching an L1 PerpDex on Ethereum to attract liquidity without requiring asset bridging.

• The platform uses a hybrid off-chain order matching with on-chain margin to balance speed and security.

• A trader-focused approach and a high-profile trading competition are key strategies for adoption and feedback.

Synthetix founder Kane Warwick is launching Infinex, a new perpetual decentralized exchange (PerpDex) directly on Ethereum Layer 1, addressing a gap in the market. This marks Synthetix's fourth version of a PerpDex, aiming to attract significant liquidity and traders by allowing margin deposits directly into an L1 contract, eliminating bridging needs. The platform employs an 'optimistic order book' model, where order matching occurs off-chain for speed, with all orders batched and settled on Ethereum.

The Need for L1 PerpDex

• 00:00:00 Ethereum holds the most assets, stablecoins, and margin assets compared to other chains, yet lacks a canonical PerpDex on its Layer 1. Synthetix aims to fill this void with Infinex, recognizing that existing PerpDexes like dYdX moved to L2s or other chains, struggling to attract liquidity when not on L1. The L1 has also improved significantly since 2019, offering more block space and performance, making it an opportune time for a direct L1 PerpDex to thrive.

Infinex Technical Design

• 00:05:18 Infinex overcomes Ethereum's 12-second block times by utilizing a hybrid 'optimistic order book' architecture. The order matching engine runs off-chain, providing high speed (targeting sub-50 milliseconds for matching), while the critical margin and liquidation engines, along with order settlements, remain on-chain on Ethereum. This design ensures users do not need to bridge assets off Ethereum, keeping their margin in an L1 contract, which is expected to attract more liquidity and traders.

Trader-Centric Approach & Competition

• 00:22:10 Infinex prioritizes the trader experience, aiming to build the best product for traders, a principle that Synthetix has historically upheld. This contrasts with some projects where the token's value takes precedence over user experience. The platform incorporates some order book opacity as a feature, preventing 'stop hunting,' and is gathering extensive feedback through a large trading competition involving top traders. This pre-launch event will help dial in parameters and build trust by publicly showcasing trader performance and platform robustness.

Super App Thesis & Future Vision

• 00:39:38 Kane Warwick's 'super app' thesis posits a transition away from centralized exchange dominance to on-chain platforms that offer access to every asset across all chains and DeFi opportunities within a single, non-custodial application. Infinex, along with Synthetix's PerpDex, is a part of this vision, aiming to simplify the on-chain experience for existing crypto users frustrated by fragmentation and complex wallet management. The goal is to build a platform that exceeds centralized exchange capabilities in user experience and accessibility, targeting early adopters first before expanding to offer a credible alternative to mainstream centralized exchanges.