Perp DEX + Native Yield Layer 2 = ?
This article is not an ad for my broker.
But I can assume you’d want your hard currencies, such as ETH and USDC, on Ethereum Layer 1s and Layer 2s to yield as much as 4.83%, if not higher.
You also want your asset to be “mobilized” i.e., used as collateral for your lending on AAVE, liquidity provision in Uniswap V3, or as margin for a God-favoring 10x long ETH trade on SynFutures V3. (Now that would be a real ad!)
You deserve both!
Unlike other perp decentralized exchanges (DEXs) focused on forking (not a typo) each other, SynFutures has gone far to seek solutions for you, dear trader.
We first tried to add liquid staking token (LST) assets as liquidity provision (LP)/margin tokens through our DAO Perps (a.k.a., DAO Futures) program so that traders could earn a yield while trading. Currently, 28.6 million ETH (equivalent to about $58.8 billion) has been staked on cross liquidity staking protocols, CEXs (centralized exchanges), and staking pools.
As my friends in the consulting sector would say: “Huge TAM!”
But I’m not a consultant. I trade. I BUIDL.
After a few pilot tests, the SynFutures team realized that the high Ethereum L1 gas cost backfires, rendering most trading strategies unprofitable on a net basis, even when counting the LST yield. So, we began looking at L2s.
The fact is that the majority, if not all, of LST is on Ethereum L1 today. Layer 2s like Solana and Avalanche have LSTs but on a much smaller scale compared to the Ethereum ecosystem. An alternative initiative is also underway to use fungible and freely transferrable RWA (Real World Assets) as margin tokens, replacing USDC and USDT so traders can earn yields on their margin assets. We have successfully sealed a couple of good deals for our users on a case-by-case basis. But still, it is hard to scale with the current availability on L2s where gas costs are reasonable for trading.
In this unyielding winter, I then heard a remote sound from spring.
Last week, my friend Colin Hong introduced me to a new Ethereum L2 called Blast, which offers native yield on ETH and stablecoins. Specifically, he mentioned the possibility for a perp DEX that charges zero trading fees and uses collateral and margin to monetize. What a brilliant idea! My initial thought was that we might be able to return the yield to the users or use it to subsidize gas.
I’ll admit — talk of subsidizing gas fees isn’t as sexy as airdrop or token launch conversation. But one way or another, this idea executed would improve SynFutures traders’ experience. And that would be of bigger value as we continue our long-term journey of BUIDLing a better perp DEX and seeing mass adoption.
Founded by a group of idealists, SynFutures continues to sail in a sea of full decentralization rather than settling along the calm, familiar shores of centralized or hybrid models. For example, on SynFutures V3 powered by Oyster AMM, even the limit order book function is fully on-chain. With Blast native yield to further reduce gas cost, this integration could mean more active on-chain market making activities and advanced LP strategies without going down the path of a closed ecosystem of appchain or offchain hybrid infrastructure.
Probably nothing.
Have thoughts on Blast, SynFutures, or the future of perp DEXs? I would love to hear your thoughts. Share this article and tag me @MattSynFutures1 on X.
