Back to Ethereum, Synthetix helped define DeFi, synthetic assets, early Layer 2 adoption. Now it’s returning to Ethereum Mainnet with a new focus: protocol-owned liquidity and renewed support for $SNX. At the core is the SLP vault.
What’s the SLP Vault? A pooled market-making engine. Anyone can deposit sUSD and share in trading profits from perps. No management/performance fees, no insider walls—just a way for anyone to earn by providing liquidity
Why sUSD Matters Everything runs on sUSD. Depositing gives proportional ownership of the vault (profits + risks). It strengthens sUSD demand, helps SNX stakers secure the system, and makes PnL tracking straightforward
Risk Controls: This isn’t all upside Built-in hedging (details soon) Insurance fund as a buffer SNX stakers as the final backstop, with incentives for stepping in Layers of protection, not just promises
Performance Target Modeled on proven vaults (think Hyperliquid’s HLP, dYdX’s Megavault). Goal: steady USDT returns, deep liquidity, low spreads. Community-owned, not outsourced
Worst-Case Scenarios Short-term drawdowns = covered by fees. Oracle failures/bad debt = insurance fund. If needed, stakers get slashed but also earn higher rewards. Solvency first.
How It Works - Deposit sUSD - Vault trades perps (MM strategies) - Profits/losses distributed proportionally - Revenue from spreads, funding, liquidations - 4-day withdrawal buffer for stability
Why It Matters Market making usually favors insiders. SLP lowers the bar, anyone with sUSD can play a role. It’s protocol-driven liquidity, owned by the community
What’s Next SLP launches with Synthetix Mainnet Before that: a pre-deposit campaign opens next week with whitelist access for early participants
This marks a new chapter for Synthetix, community-first, sustainable, and back on Ethereum 👉 Discord: 👉 Telegram: 👉 X:
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