Synthetix, Optimism Demo Synthetix.Exchange on Optimistic Virtual Machine (OVM)
Synthetix, the second-largest Ethereum-powered decentralized finance (DeFi) platform has joined forces with Optimism, a Public Benefit Corporation dedicated to developing scaling solutions for the Ethereum smart contracts blockchain, to demo the Synthetix Exchange on the Optimistic Virtual Machine (OVM). OVM is a layer-2 scaling solution that brings more speed and robustness to DeFi platforms. The team says it will also be organizing a trading competition with 50,000 SNX in prizes, according to a blog post on May 6, 2020.
Synthetix.Exchange Live on OVM
In an attempt to demonstrate the excellent properties of the Optimistic Virtual Machine, a Layer 2 scaling solution for Ethereum, to its traders, the Synthetix team have launched a new demo of Synthetix.Exchange on OVM.
The Optimism team launched the OVM alpha earlier in February 2020 and just like the Bitcoin Lightning network, OVM functions as a Layer-2 scaling solution. However the latter uses “Optimistic Rollup” technology to create highly scalable side chains that can significantly extend the capabilities of the Ethereum main chain.
“We put UNiswap on L2, but Ethereum supports so many cool smart contracts and we need to add support for all of them. Upgrading smart contracts to Optimistic Rollup / L2 should be as simple as a recompilation & redeployment,” declared the Optimism team at the time.
Synthetix Trading Competition on OVM
According to the Synthetix team, the primary aim of launching Synthetix.Exchange on OVM is to demonstrate the latter’s ability to drastically speed up transactions, lower gas fees on the Ethereum network and give traders an excellent experience.
Specifically, the team has made it clear that the demo also comes with a trading competition on the l2.syntheix.exchange, where traders will compete for prizes worth 50,000 SNX.
“This competition will encourage traders to experience the OVM, which enables DeFi platforms to operate at speeds usually associated with centralised systems. L2 scaling is critical to Synthetix.Exchange as it continues to launch an unsurpassed trading experience on Ethereum.”
As reported by BTCManager on May 1, 2020, Vitalik Buterin was present on David Hoffman’s CryptoPOV podcast and he talked about a host of pertinent issues concerning ETH2.0, including Ethereum’s relationship with Bitcoin.