Synthetix, a trailblazer in decentralized finance, has unveiled a significant expansion of its operations on the Arbitrum network, marking a major milestone in its ongoing evolution. This strategic move is part of the broader Arbitrum Liquidity Incentive Program (LTIP), designed to bolster liquidity and trading activities on the platform.
Scheduled to run for 12 weeks, until September 3rd, the initiative is backed by an impressive allocation of 2 million ARB tokens. The initiative, an ambitious one at that, seeks to supercharge liquidity provision & stablecoin adoption and hence also intends to optimize the Perpetual Contracts (Perps) trading environment in the Arbitrum landscape.
Synthetix, known for its decentralized derivatives infrastructure, a landmark in DeFi space, is still leading the charge of innovation. The platform provides support for more than 80 derivative markets by leveraging its proprietary Synthetix Perps system.
We’re thrilled to announce the details of our Arbitrum LTIP distribution plan, approved by @arbitrum governance.
🗓️ 12-week program
💰 2M $ARB in rewards
🌊 Incentives for LPs (USDC, ARB, ETH & USDe), stablecoin liquidity & tradingNext tweet for the blog post 👇
1/2 pic.twitter.com/AUicFBJZZN
— Synthetix ⚔️ (@synthetix_io) June 25, 2024
What is super impressive is that it has already processed well over $50 billion in volumes traded. Even more significantly, it has played a role in the development of a delta-neutral LP experience that has been highly beneficial to capital providers, distributing over $25 million trading fees to the participants.
Harnessing ARB Rewards to Fuel Ecosystem Growth
To ensure maximum engagement and growth within the Arbitrum ecosystem, the 2 million ARB reward will be distributed in a well thought-out manner. Of these, 1,000,000 ARB are designated to fund liquidity provider incentives for healthy trading activity.
There are also an additional 900,000 ARB tokens assigned to trading fee rebates (capped at 75% of fees paid on the platform), giving active traders significant discounts. The other 100,000 ARB are to support the stablecoin liquidity; this further emphasizes how necessary stable assets are if the DeFi ecosystem is ever going to function in a sustainable financial model.
Between these options, even those considering joining this hefty program can get involved in a few equally beneficial activities. On the Synthetix Liquidity platform, liquidity providers can contribute to pools by depositing eligible assets (e.g., USDC, ETH, ARB and soon-to-be-launched Ethena USDe). Additionally, there’s an opportunity to supply liquidity to the USDx/USDC pools on Ramses, a prominent decentralized exchange on Arbitrum.
These pools will be created soon, as Ramses will announce the details soon. The rollout of new Perps trading represents an attractive opportunity for anyone active in the perpetual derivatives trading space to engage as a launch partner program and earn fee rebate rewards via supported integrators supporting participation and volume growth.
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