Synthetix founder launches Infinex to compete with centralized exchanges

Infinex, a Synthetix frontend designed to rival centralized exchanges, was announced by its founder Kain Warwick on July 14.

Infinex serves as a frontend to the existing derivatives liquidity protocol Synthetix, which operates in part on Optimism’s OP Mainnet. The new Infinex interface is intended to tackle three key obstacles: migrating users to Optimism, acquiring the sUSD stablecoin, and solving the need to sign every action.

Infinex aims to improve user experience

Infinex more broadly aims to streamline users’ DeFi experience while addressing prominent issues in the decentralized exchange (DEX) market. Warwick said that Infinex has a simple approach, stating: “Nothing is sacred but the user experience.”

Warwick said that while many are optimistic about DEXs outperforming centralized exchanges, DEXs still face challenges in competing with centralized exchanges. Therefore, Infinex plans to replicate the centralized exchange experience instead of waiting for improvements to crypto UX or waiting for users to be concerned with counterparty risk.

Infinex will feature two interfaces: a simple mode for novice traders and a pro mode for experienced users. It 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). All revenues will be used to accumulate additional SNX, boosting Infinex’s SNX LP position as Infinex trading volumes increase.

This platform also intends to show that Synthetix Perps can compete with centralized exchanges based on past accomplishments. Following developments in 2022, Synthetix launched Perpetual Futures in 2023 to mitigate key DEX friction points such as high slippage, low liquidity, steep fees, and market risk for Liquidity Providers (LPs).

In terms of governance, the Account Relayer—operated by Infinex Governance—will act like an L2 sequencer by processing all transactions and ensuring each one has been signed before execution. The platform will not launch a new token for this purpose: instead, Infinex will

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Author: Mike Dalton

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