Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Decentralized finance (DeFi) protocol Synthetix has secured the leveraged token platform TLX in a token-for-token transaction.
This acquisition aligns with Synthetix’s strategy to establish a decentralized liquidity layer and position itself as a prominent product issuer within the ecosystem.
“The acquisition of TLX will signify the first end-customer, revenue-generating product developed on top of Synthetix that will be owned and managed by Synthetix.”
TLX Acquisition to Enhance Synthetix Offering
In its announcement, Synthetix indicated that the agreement aids in broadening its offerings.
After conducting an audit, Synthetix intends to refine key parameters and redeploy the platform’s smart contracts on the Base network.
Moreover, TLX’s native token will be burned and exchanged for Synthetix’s SNX token.
To commence 2025, Synthetix has pledged an appealing incentive program for users of leveraged tokens.
Related Posts
The platform plans to utilize TLX’s codebase as a basis for creating its own leveraged tokens, which will expedite the timeline for launching these products.
“Leveraged tokens are merely the initial category of structured products that Synthetix will be introducing in the upcoming months,” Synthetix stated. “This range of products will enhance Synthetix’s capabilities and provide greater value for SNX stakeholders in the long run.”
Established in 2017 by Kain Warwick, Synthetix facilitates the trading of synthetic assets such as stocks, commodities, and currencies on Ethereum. With $242 million in total value locked, as reported by DeFiLlama, the protocol continues to be a significant entity in the DeFi sector.
Synthetix Pursues Additional Acquisitions
Last month, Synthetix aimed to acquire Kwenta, a derivatives exchange that originated from Synthetix itself in 2020. On October 29, the project released a proposal detailing the plans in the governance forums of both Synthetix and Kwenta.
If sanctioned, the exchange, recognized as the leading project within the Synthetix ecosystem by trade volume, will be rebranded as a new iteration of Synthetix Exchange.
Furthermore, Kwenta’s treasury will be incorporated into the Synthetix treasury. The governance framework surrounding Kwenta will be dissolved, transferring authority to Synthetix’s Spartan Council.
Synthetix would acquire the entire circulating supply of Kwenta, amounting to 532,375 KWENTA tokens, for approximately 9.05 million newly minted SNX tokens (around $13.2 million).
The post Synthetix Acquires TLX in Token-for-Token Deal appeared first on Cryptonews.
