Synthetix has officially put its decentralized exchange on Optimistic Ethereum, which is a layer 2 network for the Ethereum blockchain.
The protocol team declared that the decision to use such a platform was due to the high transaction fees recorded by Ethereum: “As with many other DeFi applications, high gas costs are a central component of the UX issues faced by Synthetix in the past.”
The project believes this way Ethereum gas fees will be around 50 times lower and the exchange fees will also be lower.
Up until now, Synthetix used high-value transactions which were large enough to absorb transaction fees.
This change will also improve oracle latency via Chainlink, which means that price updates will also happen more often. Furthermore, timelier updates mean that it will be easier for users to enjoy the rates they want.
The feature is, as of now, in the testing phase; it can only be used to trade four tokens – sBTC, sLINK, sUSD, and sETH.
Source: Cryptobriefing.com