Note: Some Dune Analytics queries used for Synthetix had bugs and time-limited data, the numbers may be slightly off.
Introduction
A protocol’s lifeline is determined by its emissions, acting as a deadline that determines its success or failure. For a protocol to become sustainable long-term, it needs to rely on fees from organic usage. Synthetix is a rare glimpse into a protocol nearing its emission schedule and beginning to gain sustainable fees from user adoption. Synthetix has come a long way since the 2019/20 DeFi bull run – but has it done enough to guarantee its success?
To answer that, we need a holistic understanding of how Synthetix has evolved.
This post will look at the state of Synthetix liquidity, what’s driving usage, how the shift to Optimism has affected Synthetix, and other important considerations. For reference, we assume you have some familiarity with the mechanics of Synthetix. If you’re not
