Thread by @0x_____________

.@synthetix_io has been doing $100M+ volume daily, why the sudden increase in volume you ask?

Here's a thread on Synthetix atomic swaps⚛️🧵

First, some background:

Synthetix gives you low slippage between synths, but most people don't want to hold synths (they want to hold ETH instead of sETH)

So a while ago the SNX community worked with @CurveFinance to make Curve pools for sETH/ETH, sBTC/BTC, & sUSD/3CRV.

This enabled:
- USDC to sUSD cheaply (sUSD/3CRV pool)
- sUSD to sETH cheaply (Synthetix)
- sETH to ETH cheaply (sETH/ETH pool)

But Synthetix only did asynchronous trade execution (aka fee reclamation). Users initiate the trade, then manually settle it 6 minutes later.

This is obviously worse UX than a transaction that executes instantly so it didn't gain traction & aggregators didn't integrate.

SIP-120 appears:

This lets Synthetix do atomic exchanges basically by checking the live price on @Uniswap and comparing it to @chainlink to make sure the current Chainlink price isn't lagging behind and isn't frontrunnable.

This lets Synthetix exchanges on L1 be atomic and now everybody can use them to get good price execution on ETH <> USD <> BTC (as long as there is enough liquidity in the Curve pools)

@1inch integration is also driving a lot of volume to this.

Tagging everyone who made atomic swaps a success:

@KalebKeny @andrecronjedev @sohkai @kaiynne @jjgonecrypto @k06a @spreekaway @tonjevic @0xAfif @noahlitvin @markbarrasso @1inch @newmichwill @CurveFinance @kwenta_io