Research Summary
The report discusses the growth of the perpetual futures derivative sector in the DeFi ecosystem, with a focus on the new decentralized perps trading exchange, Infinex, developed by the Synthetix (SNX) team. The report highlights Infinex’s unique selling point of offering a superior centralized-like user experience within the decentralized trading space. It also discusses the challenges faced by decentralized exchanges and how Infinex aims to address them.
Key Takeaways
Decentralized Perps Trading Exchange: Infinex
- Introduction to Infinex: Infinex is a new decentralized perps trading exchange developed by the Synthetix (SNX) team. It aims to bring on-chain perps to the masses by offering a superior centralized-like user experience, which is currently unrivaled in the decentralized trading space.
- Challenges in Decentralized Exchanges: The report identifies two main advantages that centralized perps have over decentralized ones: liquidity and user experience. The majority of on-chain apps are slow, clunky, expensive, and difficult to use, which results in a poor user experience. Infinex aims to address these issues.
- Infinex’s Solution: Infinex’s core innovation is centered around email/password sign-up and login, which abstracts the complexities of the blockchain into the background. It also offers advanced trading tools/order types, high performance and stability in periods of volatility, and the ability to automatically source liquidity across chains.
- Tokenomics and Value Accrual: Infinex does not have its own token. The protocol will be governed by SNX with fees and value accrual flowing back to SNX holders and stakers. Infinex’s revenue is accrued via incremental trading fees, integration fees via the SNX integration program, and fees from SNX LPing.
- Launch Timeline: The closed alpha of Infinex is expected to go live in late October or early November 2023, with the open beta following a few weeks later. However, the report suggests that a more realistic launch date would be December 2024 or Q1 2024.
Actionable Insights
- Investigate the Potential of Infinex: Given its unique approach to improving user experience in the decentralized trading space, Infinex could be a game-changer in the DeFi ecosystem. Stakeholders should closely monitor its development and launch timeline.
- Consider the Role of SNX: As Infinex’s governing token, SNX could see increased value as Infinex grows. Stakeholders should consider the potential impact of Infinex’s success on SNX.
- Assess the Risks: While Infinex presents potential opportunities, it also carries risks, including smart contract and exploit risks, regulatory risks, and liquidity challenges. These risks should be carefully evaluated.
