In a recent announcement on July 14, Kain Warwick, the founder of Infinex, unveiled a groundbreaking frontend called Infinex. This innovative platform aims to compete with centralized exchanges by serving as a frontend to the derivatives liquidity protocol, Synthetix. Infinex is specifically designed to address three major obstacles: user migration to Optimism, acquisition of the sUSD stablecoin, and the need to sign every action. By streamlining the DeFi experience and tackling prominent issues in the decentralized exchange (DEX) market, Infinex is set to revolutionize the way users interact with cryptocurrencies.
Replicating Centralized Exchange Experience: The Approach of Infinex
While many are optimistic about DEXs outperforming centralized exchanges, Warwick acknowledges that DEXs still face challenges in competing with their centralized counterparts. Infinex takes a different approach by replicating the centralized exchange experience, rather than waiting for improvements in crypto user experience or user concerns about counterparty risk. With a focus on the user experience, Infinex aims to provide a simple and intuitive interface, making it accessible to both novice and experienced traders.
To cater to different user preferences, Infinex will offer two interfaces: a simple mode for beginners and a pro mode for experienced traders. The platform will generate revenue through incremental trading fees, integration fees via the Synthetix Integrators program, and fees from SNX’s role as a liquidity provider (LP). As trading volumes increase, all revenues will be used to accumulate additional SNX, thereby enhancing Infinex’s SNX LP position.
Building on Past Accomplishments: Synthetix Perps and Infinex’s Future
Infinex aims to prove that Synthetix Perps can compete with centralized exchanges based on its past accomplishments. In 2023, Synthetix launched Perpetual Futures to address key friction points in DEXs, including high slippage, low liquidity, steep fees, and market risk for Liquidity Providers (LPs). By leveraging this experience, Infinex seeks to provide a seamless trading experience for its users.
In terms of governance, Infinex will utilize the Account Relayer, operated by Infinex Governance, to process and authenticate all transactions. This mechanism acts as an L2 sequencer, ensuring that every transaction is signed before execution. Rather than introducing a new token, Infinex will utilize the existing SNX token for governance purposes.
Infinex has already opened a waitlist for beta testing, allowing select traders with margin caps to experience the platform on a first-come, first-served basis. Additionally, a referral program is available to incentivize users to invite others to join the platform. With Kain Warwick, the founder of Synthetix, at its helm, Infinex has received recognition from Synthetix itself, further solidifying its position within the Synthetix Ecosystem.
Synthetix is currently the 21st largest DeFi platform in terms of Total Locked Value (TVL), with $531.4 million locked at present. Its native cryptocurrency, SNX, ranks among the top 60 cryptocurrencies and boasts a market cap of $754 million. The launch of Infinex provides users with a new and exciting way to access a moderately large decentralized exchange, potentially revitalizing the notable DeFi platform.
Infinex’s introduction marks a significant milestone in the world of decentralized exchanges. With its user-centric approach and focus on replicating the centralized exchange experience, Infinex has the potential to reshape the DeFi landscape and attract a wider range of users to the decentralized finance ecosystem.