Synthetix, a decentralized finance (DeFi) protocol specializing in synthetic assets and perpetual trading, has officially relaunched on the Ethereum mainnet on December 17, 2025, after a three-year hiatus. This move marks a significant return to its roots, as the protocol initially launched on Ethereum in 2018 before migrating to Layer 2 networks like Optimism in 2022. The return is fueled by the project's conviction that Ethereum now possesses the robust infrastructure necessary to support high-frequency financial applications.
The migration to Layer 2 solutions was initially driven by the high gas fees and network congestion on the Ethereum mainnet. However, the Synthetix team later recognized the trade-offs associated with Layer 2 scaling, including liquidity fragmentation and infrastructure instability. According to the founder, the congestion issues that once plagued Ethereum have been "significantly resolved". This improvement, coupled with the desire to tap into Ethereum's deep liquidity and composability with other DeFi protocols, motivated the return.
The relaunch coincides with the introduction of Synthetix Liquidity Providers (SLP), a new feature designed to enhance liquidity within the protocol. Initially, access to SLP is restricted to a whitelist, with plans to make it publicly available soon. This dual rollout aims to improve user access and liquidity, positioning Synthetix for further growth in the decentralized finance space.
To ensure a smooth transition, Synthetix is implementing a phased approach. At launch, participation is capped at 500 users, including historical Synthetix and Kwenta power traders, sUSD and 420 pool stakers, trading competition participants, and a selected group of Synthetix Teams depositors. Individual deposits are limited to a maximum of $100,000 per account. The protocol plans to rapidly increase user caps, market coverage, and deposit limits as on-chain performance and risk metrics are validated. Initially, the mainnet exchange supports three core markets: Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), each with leverage of up to 100X. Withdrawals are initially disabled to monitor the on-chain deposit contract, with plans to enable them within a week.
Looking ahead, Synthetix has an ambitious roadmap for 2026, including multicollateral margin (e.g., wstETH, cbBTC), weekly additions of new markets, and the integration of real-world assets (RWAs) like commodities and equities. These developments aim to enhance cross-market exposure and provide users with a wider range of trading opportunities. Synthetix is also focused on revitalizing its SNX token and sUSD stablecoin within its ecosystem. SNX staking has been simplified, allowing users to earn protocol fees, and the return to Mainnet restores the critical function of sUSD, unlocking staked SNX liquidity to supercharge the exchange.
The return of Synthetix to Ethereum mainnet is viewed as a "triumphant homecoming" and a powerful vote of confidence in the network's ability to support complex DeFi applications. The move is expected to enhance liquidity, improve capital efficiency, and drive further innovation in the on-chain derivatives market.
