Decentralized Liquidity Platform Synthetix Sees Jump in Fees Collected Amid Incentive Campaign

The protocol generated more than $730,000 in fees on Thursday ahead of the start of its allocation of 200,000 OP tokens per week to traders.

AccessTimeIconMar 31, 2023 at 6:05 p.m. UTC
Updated May 9, 2023 at 4:11 a.m. UTC

The attempt by Synthetix – a decentralized liquidity platform that tries to lure more trading activity by dangling an incentive of Optimism tokens – appears to be starting to pay off.

The service collected $730,000 in trading fees on Thursday, the highest daily level since last June, according to data from crypto stats website DefiLlama. Synthetix charges fees to traders who use the platform and distributes them to those who stake its SNX token.

  • How NEAR Enables Multichain Access From One Account
    How NEAR Enables Multichain Access From One Account
  • Three Crypto Predictions in 2024
    Three Crypto Predictions in 2024
  • Why Injective's INJ Has Surged 3,000% in 2023
    Why Injective's INJ Has Surged 3,000% in 2023
  • How Spool Is Aiming to Help Institutions Enter DeFi
    How Spool Is Aiming to Help Institutions Enter DeFi
  • The surge comes ahead of Synthetix's weekly allocation of 200,000 OP, Optimism’s governance tokens, to traders over the span of 17 weeks, according to improvement proposal 2003. Estimated to begin in the first week of April, the OP distribution is meant to generate more activity on the protocol.

    This hasn't, so far, helped the price of SNX, though. SNX fetched about $2.50 at press time, down roughly 4% in the past seven days.

    Edited by Nick Baker.

    Update: Friday, March 31, 2023, 18:37 UTC: Adds information about the weekly allocation of OP tokens in the subhead and third paragraph.


    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Sage D. Young

    Sage D. Young was a tech protocol reporter at CoinDesk. He owns a few NFTs, gold and silver, as well as BTC, ETH, LINK, AAVE, ARB, PEOPLE, DOGE, OS, and HTR.