Synthetix is ramping up its deployment on Arbitrum and unveiling details of its Arbitrum LTIP distribution plan. The 12-week program, approved by ARB governance, aims to attract liquidity providers, stablecoin liquidity, and Perps trading activity by distributing 2 million $ARB until September 3rd.
Synthetix is thrilled to announce the expansion of its Arbitrum deployment and share details about our Arbitrum LTIP distribution plan. This initiative, sanctioned by Arbitrum governance, will span 12 weeks until September 3rd, targeting liquidity providers, stablecoin liquidity, and Perps trading activity.
Synthetix specializes in decentralized derivatives and fuels a liquidity layer for decentralized protocols. A prime example is Synthetix Perps, supporting over 80 derivative markets and facilitating over $50 billion in trading volume, offering a delta-neutral LP experience for capital providers. To date, Synthetix Perps has generated over $25 million in trading fees for LPs.
Arbitrum Rewards via LTIP
The LTIP grant of 2,000,000 ARB will be distributed as follows:
- 1,000,000 ARB for LP incentives
- 900,000 ARB for trading fee rebates (capped at 75% of trading fees paid on Arbitrum)
- 100,000 ARB for stablecoin liquidity
The distribution schedule is designed to ensure a gradual increase in liquidity and trading activity:
| Week | Date Range | LP Incentives | Stablecoin Liquidity | Trading Fee Rebates |
|---|---|---|---|---|
| 1 | June 18 – June 24 | 10,000 ARB per asset | 5,000 ARB | – |
Please note that this schedule is subject to change under the supervision of the Synthetix Treasury Council to ensure optimal protocol stability and alignment with market conditions.
How to Participate
Users can earn rewards in the following ways:
- LP Incentives: Provide liquidity on Synthetix Liquidity by depositing supported assets like USDC, ETH, ARB, and Ethena USDe (coming soon).
- Stablecoin Liquidity: Supply liquidity to USDx/USDC pools on Ramses, an Arbitrum DEX. Pools for these will be created soon, and further announcements will be made in collaboration with Ramses.
- Trading Perps: Once Perps trading goes live, supported integrators will help distribute trading fee rebate rewards. Trading fee rebates will be capped at 75% of the overall fees paid on Arbitrum. Synthetix and Pyth will also launch a campaign to further rebate those staking their Pyth tokens.
Any Questions?
To learn more about Synthetix on Arbitrum, head to our Discord & read our docs. Plus, here are a few more helpful links:
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Conclusion
In conclusion, Synthetix’s expansion on Arbitrum and the implementation of the LTIP distribution plan mark a significant milestone in the DeFi space. With a focus on attracting liquidity providers and enhancing trading activity, Synthetix is poised to continue leading the way in decentralized derivatives. The innovative approach to incentivizing users through LP rewards, trading fee rebates, and stablecoin liquidity demonstrates Synthetix’s commitment to fostering a robust ecosystem on Arbitrum. As the program progresses over the next 12 weeks, it will be exciting to see how it impacts liquidity levels and trading volumes, setting a precedent for future decentralized protocols. Stay tuned for more updates and developments from Synthetix as they continue to push the boundaries of DeFi innovation.
