In an interview with Unchained Crypto in October, Solana co-founder Anatoly stated that by observing several key indicators such as the number of active addresses, TVL, the DeFi sector, the meme craze, and the developer ecosystem, he noticed that Base is gaining momentum and becoming the strongest L2 in the Ethereum ecosystem.
In late November, Dan, the founder of Little Fox, simultaneously launched the meme coin $CONSENT on both Base and Solana, further sparking comparisons between Solana and Base in the crypto market.
According to Artemis data, last month, Base's net inflow of funds was $835 million, ranking first among all public chains, while Solana's was $313 million, less than half of Base's.
The sensitivity of capital is paramount; where there are more opportunities, more funds will gather. As the popularity of Solana MEME declines, the next choice for funds is undoubtedly the Base chain.
Unlike many other L2 projects, Base has clearly stated that it does not plan to issue a native token. This move sharply contrasts with previous projects that attracted funds through token issuance. Base's growth relies entirely on the intrinsic value of its platform and ecosystem development, with its intrinsic value reflecting more in the leading ecological projects on its chain.
Leading Derivatives Project SynFutures
As the leading derivatives protocol in the DeFi space, SynFutures is about to airdrop and conduct its TGE. Doing the right things at the right time, the heat of the Base ecosystem will bring more attention and adoption to SynFutures, which will also contribute to Base's rapid growth, forming a positive feedback loop. Its token F will also carry more value and potential brought by the Base ecosystem.
Since its launch in 2021, SynFutures has processed over $200 billion in trading volume. Its product has iterated to V3, with V3 Oyster AMM being the first unified AMM and permissionless on-chain order book in its category.
After integrating with the Base chain in July, thanks to its mature products, large community, and strong cooperative resources, it quickly became the top derivatives protocol by trading volume on the Base chain. It took only 10 days after launching on Base to surpass $100 million in trading volume, with Q3 trading volume accounting for nearly 50% of the Base network.
With a cumulative trading volume exceeding $35 billion and an average daily trading volume of over $200 million, on November 12, the single-day trading volume surpassed $910 million, currently accounting for over 70% of the daily derivatives trading volume on the Base chain, six times that of the second-ranked project.
In the case of only contract trading, SynFutures has generated over $3.3 million in fee revenue over the past 30 days, ranking third in the protocol (the third place being Base network's Sequencer). Strong profitability is also the foundation for SynFutures to operate healthily in the long term and continue to innovate and iterate.
Mechanism and Innovation of SynFutures V3
The Oyster AMM model of SynFutures V3 allows liquidity to be added within specified price ranges and enhances capital efficiency through leverage. Unlike the spot market liquidity model of Uniswap V3, the Oyster AMM adopts a margin management and liquidation framework tailored for derivatives trading, ensuring the safety of LPs and the protocol.
A crucial aspect of the Oyster AMM model is the introduction of bilateral liquidity, allowing liquidity to be added using only one token without needing to provide bilateral assets in a 1:1 ratio. Liquidity providers can list any trading pairs, such as meme coins pairing with each other or any asset pairing. This mechanism brings more flexibility and options to the ecosystem.
The oAMM itself is an open-source smart contract deployed on-chain, featuring permissionless characteristics. There is no need for complex pre-listing communication and review; anyone can add any trading pair at any time. Whether project parties or holders, they can create trading pairs for their tokens on SynFutures, adding liquidity in 30 seconds. This brings more options to the ecosystem and enhances responsiveness.
By supporting users to provide liquidity at specified price points, SynFutures realizes on-chain limit orders, simulating order book trading behavior, significantly improving capital efficiency. This model aligns more closely with the habits of market makers on centralized trading platforms, attracting more proactive market makers to participate, thereby enhancing trading depth and efficiency and providing a trading experience close to CEX.
Unlike off-chain order books like dYdX, the oAMM is deployed on-chain, with all data being publicly transparent and verifiable, completely decentralized, eliminating concerns about dark operations or false trading.
Compared to GMX's Vault model and dYdX's application chain model, SynFutures compensates for the shortcomings of both while maintaining efficiency and high performance, naturally integrating into the asset ecosystem of the underlying public chain. As technology iterates, this advantage will further expand.
Perp Launchpad Injects New Vitality into On-Chain Asset Issuance
Over the past year, asset issuance has become the most attractive track, with the popularity of runes, inscriptions, and Pump.fun proving the powerful allure of "innovative gameplay + wealth effect." The Base chain has performed outstandingly in token issuance platforms, with significant development potential.
Under the mature framework of SynFutures V3, the launch of the industry's first perpetual contract Perp Launchpad opens up new avenues for on-chain asset issuance and trading, injecting more vitality into the DeFi market and helping Base maintain its lead in fierce public chain competition!
For example, if a MEME project uses its token to create a contract market on SynFutures, it can not only provide more trading methods and choices but also attract arbitrage funds through the price difference between spot and contract, increasing the token's visibility and holder count, amplifying the wealth effect. More importantly, the dominance of the contract market is in the hands of the community, allowing project parties and supporters to benefit from providing liquidity, breaking free from reliance on centralized exchanges and forming a healthier ecological cycle.
In recent years, the initiative in the spot market has returned to on-chain liquidity pools, and in the future, the dominance of the contract market will also return to the community and on-chain, rewarding the community and holders through SynFutures. These can only be realized under the V3 model framework, which allows for setting value ranges, supports unilateral liquidity, enables liquidity addition in 30 seconds, and operates entirely on-chain with limit order books, representing a unique advantage and moat that is difficult for any other competitor to imitate.
Spot Aggregator in Planning, May Become Base Chain's Jupiter
SynFutures and Jupiter share many similarities; both were founded in 2021 and have emerged from the harshest bear markets as profitable leading DeFi protocols. Remarkably, both have issued tokens only after long-term stable operations and continuous iterations, using token issuance as a catalyst for entering the next stage of their projects. Issuing tokens is a node in their long-term strategy, or a new beginning, rather than a goal for some projects.
The difference is that Jupiter initially chose to be an on-chain spot aggregator, while SynFutures opted for the derivatives track. However, both paths lead to the same destination; after issuing tokens, Jupiter began to layout its entry into the derivatives track and achieved remarkable results. SynFutures will also launch a spot aggregator after its TGE, addressing the lack of an influential spot aggregation trading product on the Base chain.
The synergy between on-chain trading volume and asset issuance enables SynFutures not only to provide trading liquidity for Base but also to participate in the asset issuance process, occupying the largest value capture entry on-chain. Once the spot function is online, SynFutures will further consolidate its market position with the dual advantages of spot and derivatives trading.
Track Comparison: What is a Reasonable Valuation for SynFutures?
SynFutures has announced its tokenomics, with a total supply of 10 billion tokens. Based on its positioning in the ecosystem as "Base chain's Jupiter," what is the most reasonable valuation?
The FDV of Raydium, the largest spot DEX on Solana, is $3 billion, while the largest spot DEX on Base is currently $2 billion, with a ratio of 3:2.
Jupiter on Solana shows an FDV of $11.2 billion on CoinGecko, but due to the official announcement to burn 30% of the team's holdings, the actual FDV is $7.84 billion. According to the 3:2 ratio of spot DEX, SynFutures' FDV would be approximately $5.22 billion.
However, since SynFutures' spot component has not yet launched, we can use a multi-dimensional approach to derive a reasonable valuation:
Referring to the FDV when the Jupiter token was just launched may be more reasonable, which is $5 billion, making SynFutures' reasonable valuation $3.333 billion.
Another well-known derivatives trading platform on Solana, Drift Protocol, has an FDV of $1.36 billion. Simply using the 3:2 ratio yields a result of $900 million.
However, SynFutures' V3 and Perp Launchpad clearly have greater advantages and growth potential. Averaging the conclusions drawn from comparisons with Jupiter and Drift, SynFutures' current reasonable valuation is approximately $2.1 billion.
As a project backed by Coinbase, Base has gained strong support in the market, and the likelihood of tokens on the Base chain being listed on Coinbase is much higher than on other chains. If it can launch on Coinbase like Aero, the valuation of F will further increase.
Additionally, as the Base chain continues to rise and SynFutures launches spot aggregation trading, the FDV will also rise, potentially even surpassing Jupiter, as Web3 is indeed a place for miracles.
Industry Outlook and Future Thoughts
From a macro perspective, the development of the Base network injects new vitality into the on-chain derivatives market, and SynFutures is the most promising project in this field. Its innovative Perp Launchpad model not only promotes the marketization of on-chain assets but also provides users with more diversified trading options. This model may become the mainstream trend in on-chain trading in the future, further consolidating SynFutures' leadership position in the market.
The launch of spot aggregation trading will help SynFutures gradually occupy the two most promising tracks in the Base ecosystem—derivatives trading and spot trading. This dual layout will bring more users and trading volume to SynFutures, driving the platform's long-term sustainable development.
For investors, the launch of SynFutures tokens not only reflects its intrinsic ecological value but may also indirectly carry the growth dividends of the Base network. This token opportunity in a "no-token network" ecosystem may be the most scarce potential breakout point in the current market.