Last updated on December 29th, 2024 at 03:01 pm
Synthetix, a DeFi protocol, has acquired the leveraged token platform TLX in a token-for-token transaction.
According to the organization, this move is crucial for Synthetix to establish a decentralized liquidity layer and position itself as a leading product issuer in the DeFi ecosystem.
The acquisition represents the first revenue-generating product developed on the Synthetix platform, wholly owned and operated by Synthetix.
Synthetix emphasized that this acquisition will enable the expansion of its product offerings. Synthetix intends to optimize key parameters and redeploy the platform’s smart contracts on the Base network following an audit. Additionally, the native token of TLX will be burned and converted into Synthetix’s SNX token. To begin 2025, Synthetix will launch an incentive program for users of leveraged tokens.
The platform aims to utilize TLX’s codebase to develop its leveraged tokens, which will accelerate their market release. Synthetix says leveraged tokens are only the starting point, as the protocol plans to introduce various structured products. This strategy will enhance its capabilities and create greater value for SNX stakeholders overtime.
Founded in 2017 by Kain Warwick, Synthetix is a decentralized platform that allows for the trading of synthetic assets such as stocks, commodities, and currencies on the Ethereum blockchain.
Recently, Synthetix announced plans to acquire Kwenta, a derivatives exchange established by Synthetix in 2020. On October 29, a proposal outlining the acquisition was posted in the governance forums of both Synthetix and Kwenta. If the proposal is approved, Kwenta will be rebranded as the new version of Synthetix Exchange. Additionally, Kwenta’s treasury will merge with Synthetix’s, and its governance structure will transition to Synthetix’s Spartan Council oversight. Synthetix plans to purchase the entire circulating supply of 532,375 KWENTA tokens for approximately 9.05 million newly minted SNX tokens, which are valued at around $13.2 million.
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