Synthetix Acquires TLX in Token-for-Token Deal

DeFi protocol Synthetix has acquired the leveraged token platform TLX through a token-for-token transfer.

This acquisition is part of Synthetix's new strategy aimed at creating a decentralized liquidity layer and positioning itself as a primary product issuer on that layer.

The protocol announced that this marks the first end-customer, revenue-generating product to be owned and operated by Synthetix.

After completing a thorough audit of TLX products, Synthetix plans to enhance parameters and redeploy all smart contracts in the upcoming weeks, relaunching TLX products on the Base network. The TLX native token will be burned and converted into Synthetix's token SNX.

Synthetix also commented, "Once done, we will announce a juicy leveraged token incentive program to kick off 2025."

Utilizing TLX's existing codebase will enable Synthetix to design and launch its leveraged tokens more swiftly in the market.

Synthetix stated, "Leveraged tokens are just the first category of structured products that Synthetix will be launching over the coming months. 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 allows users to trade synthetic assets such as stocks, commodities, and currencies on the Ethereum blockchain. The protocol currently has a total value locked of $242 million, according to data from DefiLlama.