Synthetix (SNX)

No shit. The fundamentally unsound stablecoin didn’t work.

$SNX is still way overvalued any if you hold any, liquidate and allocate into something that has a chance, like $AAVE, $FLUID, $EUL or simply $ETH.

💹 Synthetix launches multicollateral with ETH: first non‑stable asset as margin for perps

@Synthetix activated multicollateral margin on its decentralized derivatives platform, allowing ETH to be the first non‑stable asset accepted as collateral for trading perpetual contracts directly on Ethereum Mainnet.

Users can now deposit ETH as collateral and maintain exposure to the asset while trading any available market, without needing to convert it to stablecoins first.

How does the new system work?

A unified multicollateral margin account is used where ETH and USDT operate together.
The value of ETH is calculated using its real‑time index price, applying a risk discount (haircut).
Positions are settled in USDT, so fees, funding, and profit‑and‑loss (PnL) are denominated in that stablecoin.
If the USDT balance falls below the required threshold, the protocol automatically converts a portion of ETH to keep the account solvent.

Advantages and expectations

This functionality unlocks access to over $100 billion of idle ETH and improves strategies such as basis trading: deposit ETH, sell same‑size ETH perps, and create a delta‑neutral position to capture funding rates.

Synthetix expects ETH will not be the only non‑stable asset accepted as collateral and that yield‑bearing assets will be the next to be incorporated into the system.

In summary

Synthetix has activated multicollateral margin with ETH as the first non‑stable asset, allowing users to trade perpetual contracts while maintaining ETH exposure without converting to stablecoins.

The upgrade significantly improves capital efficiency and represents an important step toward greater flexibility in the decentralized derivatives market.

The functionality is already live on Ethereum Mainnet.

⚠️ Important notice:
This information is based on Synthetix’s official announcement. It does not constitute investment advice. Always perform your own analysis before making any decisions.