(CoinDesk Analysis Team)
Synthetix’s SNX token rose over 14% in the past 24 hours as developers said the protocol’s decentralized autonomous organization (DAO) had renewed a deal with liquidity provider Jump Crypto.
DAOs are entities that have no central leadership, and are owned and governed by their members. Their decisions are carried out by software rather than human managers.
“Jump Crypto’s experience in data-driven trading and liquidity provisioning will complement Synthetix’s mission to become the liquidity backbone for on-chain derivatives,” developers said in a tweet on Thursday night.
The Chicago-based trading firm is expected to work closely with the Synthetix ecosystem to provide liquidity across listed assets and product feedback. Jump Crypto provides liquidity services, investments and participates in project governance.
At the time of writing, Synthetix did not respond to requests seeking specifics of the deal.
SNX rose to as much as $3.37 during Asian trading hours before profit-taking saw prices to decline to $3.25 at press time. The tokens have gained over 19% in the past week, but only 4% compared to the past month after a market-wide decline pushed prices to monthly lows of $2.13 in early July.
However, the fundamentals remain strong. Since March, Synthetix has recorded trading volumes of over $2.8 billion, mainly from the atomic swaps and perpetual swaps products. Atomic swaps refer to an exchange of cryptocurrencies from separate blockchains. These use Uniswap and Chainlink live prices to ensure traders’ accurate execution.
Popular markets on Synthetix include ether (ETH), bitcoin (BTC), and chainlink (LINK) token derivatives traded against Synthetix USD (SUSD), a dollar-pegged stablecoin. The pairs have seen over $40 million in trading volume in the past 24 hours, Nomics data shows.