SynFutures launches innovative Perptual Futures platform Perp Launchpad on Base

In July, the Base ecosystem welcomed an important player: SynFutures. So far, SynFutures has accumulated a trading volume of $26 billion in Base, accounting for more than half of the market share of perpetual futures trading in the Base ecosystem.

Recently, SynFutures launched the Perp Launchpad platform on Base, creating a brand new issuance model for Perptual Futures.

Before delving into this innovation, we need to recognize the harsh reality of the current market: the growth of Perptual Futures exchanges is facing bottlenecks, and the major players have already divided most of the profitable Perptual Futures varieties. The remaining contracts either have too low trading volumes to sustain themselves or have become arbitrage tools due to inefficient pricing.

In such a market environment, SynFutures chooses to take a different approach and seeks new growth opportunities.

1. Perp Launchpad: One-stop Perptual Futures launching platform

The Perp Launchpad provides liquidity and price discovery channels for Restaking and Meme tokens through low gas fees, smaller spreads, and high capital efficiency, along with a $1 million subsidy, aiming to attract a new user base primarily consisting of on-chain investors.

The main features of the platform include:

• Lower the access threshold for the Perptual Futures market
• Quickly build depth through the LP incentive mechanism
• Leverage Base's low Gas advantage for rapid deployment

Taking Lido's wstETH/ETH Perptual Futures as an example, it achieved remarkable results just 2 months after launch:

• Cumulative trading volume reached 260 million USD
• Peak TVL reached $918,000
• Over 132,000 on-chain transactions
• Number of users exceeds 1955

2. Investor Perspective: New Sources of Revenue and Risk Management Tools

For on-chain investors, SynFutures offers threefold revenue opportunities:

• LP market-making earnings (annualized up to 50%+)
• Cooperative Community Revenue Share
• Potential future token airdrops and point rewards

At the same time, it also provides investors with tools to manage Restaking assets and the risks of Meme coins.

However, investors should also be aware of the following risks:

• The periodic fluctuations of liquidity in the Perptual Futures market
• Newly listed trading pairs may bring significant price volatility
• LP market making faces impermanent loss risk

3. New Applications of Restaking Assets

SynFutures collaborates with the leading Liquid Staking provider to offer new monetization channels for Restaking assets. This could have the following impacts:

• More Restaking assets enter the Perptual Futures market
• The liquidity of LRT tokens has further improved.
• May give rise to new Restaking derivative gameplay

It is worth noting that BTC Restaking assets are becoming the new favorite in the Perptual Futures market. The pumpBTC/ETH and SolvBTC/ETH Perptual Futures have performed particularly well:

• pumpBTC/ETH: 24-hour trading volume 429.3K, TVL reaches 12M
• SolvBTC/ETH: 24-hour trading volume 341.8K, TVL reached 5M

The TVL scale of these two trading pairs has approached the mainstream coin pair ETH/USDC, possibly due to:

• The BTC Restaking track is gaining popularity, and funds need hedging tools.
• The price correlation between BTC and ETH provides a natural pricing benchmark for these trading pairs.
• The competition among Restaking protocols has intensified, giving rise to more speculative demand.

4. The Long Tail Situation of Meme Coin Perpetual Futures

Surprisingly, the performance of Meme coin Perptual Futures has been relatively mediocre, failing to replicate the enthusiasm of the spot market:

• BONK/USDC Perptual Futures: 24-hour trading volume 7.7K, market depth 405.3K
• PEPE Perptual Futures: Daily average trading volume is between 5K-10K, market making depth is in the range of 300K-500K.
• Other Meme tokens performed worse

Possible reasons for this phenomenon include:

• The combination of high leverage and high volatility poses excessive risk.
• The speculative nature of the Meme coin spot market often leads to imbalances in the Perptual Futures funding rates.
• The risk of impermanent loss is relatively high, and LPs need to be cautious in managing their risk exposure.

Conclusion

This innovation from SynFutures essentially reshapes the issuance model of Perptual Futures, opening the door to the derivatives market for various tokens. It not only lowers the issuance threshold for Perptual Futures but, more importantly, establishes an important channel for value discovery, allowing everything from "blue chip assets" like Restaking to "retail favorites" like Meme coins to find market pricing.

This inclusive strategy, although not without risks, may be the necessary path for Perptual Futures to enter the mainstream market. In a bear market, sometimes the boldest ideas can create the greatest value.