The post Synthetix to Shut Down L2s, Refocus on Ethereum Mainnet appeared on BitcoinEthereumNews.com.

DeFi protocol Synthetix will shut down its Layer-2 deployments on Base by July 7. The team cited “fragmented liquidity” as the reason for the pivot back to Ethereum mainnet. The strategic shift comes after the price of the native SNX token has fallen by 83%. The decentralized finance (DeFi) protocol Synthetix has announced a major strategic pivot, setting a July 7 target to phase out all of its Layer-2 deployments on the Base network. The derivatives protocol stated it will now consolidate its focus on the Ethereum mainnet, a surprising move that goes against the broader industry trend of L2 expansion. The decision comes after the project’s native token, SNX, has suffered from significant bearish pressure and a lack of liquidity for several months. Why the Protocol Is Refocusing on Ethereum Mainnet According to Synthetix, the decision to phase out its L2 deployments stems from ongoing infrastructure instability and fragmented liquidity. Meanwhile, the liquidity provider (LP) vaults have stopped accepting deposits because of the latest decision. Related: sUSD Crashes Below $0.77: Synthetix Faces Challenges After Major Protocol Changes All existing Synthetix products on the Base network, including perpetual futures and LP vaults, will be fully deprecated by the July 7, 2025, deadline. The project confirmed, however, that it will maintain its support for the Optimism L2 network. New Strategy Includes Stablecoin Vaults and Incentives As part of its renewed focus on the Ethereum mainnet, Synthetix clarified that it would shift its focus to the Ethereum mainnet and highlighted plans to launch early deposit vaults for its stablecoins, sUSD and sUSDe.  Meanwhile, it would also introduce point-based incentive programs for participants while maintaining support for the Optimism L2 network. In the meantime, the blockchain solution is developing tools that would help sUSD holders migrate their assets to the Ethereum mainnet. Move…

---

Filed under: News - @ June 14, 2025 11:28 am