Synthetix Acquires TLX in Token-for-Token Deal

Adoption DeFi Ethereum

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Ruholamin Haqshanas

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Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

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December 11, 2024

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Decentralized finance (DeFi) protocol Synthetix has acquired the leveraged token platform TLX in a token-for-token deal.

The acquisition is part of Synthetix’s plan to create a decentralized liquidity layer and emerge as a leading product issuer within the ecosystem.

“The acquisition of TLX will mark the first end-customer, revenue-generating product built on top of Synthetix that will be owned and operated by Synthetix.”

TLX Acquisition to Expand Synthetix Offering

In its announcement, Synthetix said the deal helps expand its offerings.

Following an audit, Synthetix plans to optimize key parameters and redeploy the platform’s smart contracts on the Base network.

Additionally, TLX’s native token will be burned and converted to Synthetix’s SNX token.

To kick off 2025, Synthetix has promised an enticing incentive program for leveraged token users.

The platform intends to use TLX’s codebase as a foundation for developing its own leveraged tokens. In turn, this will accelerate the timeline for bringing these products to market.

“Leveraged tokens are just the first category of structured products that Synthetix will be launching over the coming months,” Synthetix wrote. “This suite of products will help broaden Synthetix’s capabilities and generate more value for SNX stakeholders over the long-term.”

Founded in 2017 by Kain Warwick, Synthetix enables trading of synthetic assets like stocks, commodities, and currencies on Ethereum. With $242 million in total value locked, according to DeFiLlama, the protocol remains a key player in the DeFi landscape.

Synthetix Eyes More Acquisitions

Last month, Synthetix set its sights on acquiring Kwenta, a derivatives exchange that emerged from Synthetix itself in 2020. On October 29, the project published a proposal outlining the plans in the governance forums of both Synthetix and Kwenta.

If approved, the exchange, recognized as the leading project within the Synthetix ecosystem by trade volume, will be rebranded as a new version of Synthetix Exchange.

Additionally, Kwenta’s treasury will be integrated into the Synthetix treasury. The governance structure surrounding Kwenta will dissolve, transferring control to Synthetix’s Spartan Council.

Synthetix would purchase the entire circulating supply of Kwenta, totaling 532,375 KWENTA tokens, for approximately 9.05 million newly minted SNX tokens (approx $13.2 million).