The decentralized derivatives trading protocol Synthetix has brought its core product back to its original starting point. In a blog post published on Thursday, its development team announced the launch of the perpetual contract exchange Synthetix Perps on the Ethereum mainnet, symbolizing its first return to the mainnet since migrating to Layer 2 networks in 2022.
Introducing Synthetix Perps on Ethereum Mainnet We are thrilled to announce that Synthetix, the canonical perp DEX on Ethereum, is now live. https://t.co/wF8YiMLJVt pic.twitter.com/CqcptUK96R
— Synthetix (@synthetix) December 19, 2025
This relaunch will start with a private testing phase. Currently, Synthetix Perps supports trading in Bitcoin (BTC), Ether (ETH), and Solana (SOL), offering up to 50x leverage. Only 500 users will gain access, comprising protocol contributors, stakers, and experienced traders.
Each user's deposit limit is set at 40,000 USDT, and the withdrawal function will be temporarily closed during the platform's initial launch. The team expects to open withdrawals within about a week after observing the operation of on-chain deposit contracts. Synthetix indicated that the current system configuration is only an early version. Over the next few months, the platform will introduce new trading markets weekly while gradually increasing leverage multiples, expanding deposit limits, and adding more trading features.
This return to the Ethereum mainnet follows an internal restructuring. Most members of the existing team joined within the past year, and founders Kain Warwick and Jordan Momtazi have also returned to take on leadership roles.
Reasons for returning to Ethereum
Due to high gas fees making high-frequency trading difficult, Synthetix left the Ethereum mainnet in 2022. Since then, the protocol has operated on networks such as Optimism, Arbitrum, and Base, but the team now states that the limitations imposed by these operating environments have become increasingly hard to ignore over time.
The new system employs off-chain order matching and on-chain clearing design, with user funds remaining on Ethereum, and trades cleared directly on Layer 1, allowing withdrawals without permission. Synthetix stated that this architecture maintains the security of Ethereum custody and settlement while providing a low-latency trading experience.
The reduction in gas fees and recent Ethereum mainnet upgrades, such as Fusaka, have also influenced this return decision. The team believes that today's Ethereum can support more complex trading activities without forcing users to perform cross-chain asset transfers or disperse liquidity across multiple networks.
Synthetix founder Kain Warwick stated that this shift is the result of years of repeated attempts and adjustments. In his view, capital, liquidity, and serious traders tend to focus on the most robust environments for custody mechanisms, clearing capabilities, and composability.
Synthetix plans to continuously expand the platform before 2026, including multi-collateral margin, new order types, real-world asset (RWA) markets, and deeper integration with Ethereum DeFi applications.
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