TLXLeveraged Tokens vs Perpetual Futures - A Performance Comparison
This article has moved to the Synthetix blog.
TLXTLX: The Leveraged Tokens Protocol
TLX is a leveraged tokens protocol that enables users to mint and redeem leveraged tokens for over 50 assets with up to 20x leverage. Built on Optimism and backed by Synthetix perps, TLX pilots the next generation of leveraged tokens in DeFi. Where gaining leveraged exposure to a wide range of assets is as simple as one click.Why Leveraged Tokens?Leveraged tokens, as a financial instrument, provide leveraged exposure to an underlying asset. Unlike perpetual futures, leveraged tokens maintain ...
TLXCouncil Elections - Epoch 2
TLX Council Elections are back for their second Epoch! Council Elections for the second Epoch can be summarized by the following points:Nominations for TLX Council seats will open on Aug. 20thUsers can submit their nomination until Aug. 29thVoting will begin on Aug. 30th (Snapshot) and conclude on Sep. 8thAny user can submit a proposal for nomination on DiscordTLX GovernanceTLX employs several governing bodies that oversee the maintenance and improvement of the TLX protocol. These governing b...
The leveraged tokens protocol
TLXLeveraged Tokens vs Perpetual Futures - A Performance Comparison
This article has moved to the Synthetix blog.
TLXTLX: The Leveraged Tokens Protocol
TLX is a leveraged tokens protocol that enables users to mint and redeem leveraged tokens for over 50 assets with up to 20x leverage. Built on Optimism and backed by Synthetix perps, TLX pilots the next generation of leveraged tokens in DeFi. Where gaining leveraged exposure to a wide range of assets is as simple as one click.Why Leveraged Tokens?Leveraged tokens, as a financial instrument, provide leveraged exposure to an underlying asset. Unlike perpetual futures, leveraged tokens maintain ...
TLXCouncil Elections - Epoch 2
TLX Council Elections are back for their second Epoch! Council Elections for the second Epoch can be summarized by the following points:Nominations for TLX Council seats will open on Aug. 20thUsers can submit their nomination until Aug. 29thVoting will begin on Aug. 30th (Snapshot) and conclude on Sep. 8thAny user can submit a proposal for nomination on DiscordTLX GovernanceTLX employs several governing bodies that oversee the maintenance and improvement of the TLX protocol. These governing b...
The leveraged tokens protocol
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On December 4th, 2024, after receiving a majority vote, Synthetix's acquisition of TLX became official. The acquisition will happen via a token-for-token transaction that was approved via SIP-412 and TIP-14. All TLX users and holders should read this blog to understand key details of the acquisition and the next steps going forward.
Over the coming weeks, a conversion contract will be created that allows holders to convert their $TLX to $SNX. The primary attributes of the contract are as follows:
18 TLX will convert to 1 SNX
There will be a 1-month lock, followed by a 4-month linear vesting period.
Holders can redeem the portion of their SNX that has vested anytime during the 4-month vest.
Neither TLX nor Synthetix Treasuries will be converting their TLX tokens, instead they will be burning them.
The lock period for all TLX holders started on December 5th, 2024, no matter when TLX tokens are sent to the contract.
After 2 years, any TLX not sent to the contract will be deemed lost and will not convert into SNX.
After the 5-month lock/vest concludes, 700k sUSD will be distributed to the TLX community as follows:
4,635.77 sUSD will be ‘earnable’ per day (700k over 151 days) - this will be adjusted to reflect the number of days from the contract launch to the 5th of May (e.g., 4,761.90 sUSD each day for 147 days if it were today).
Users will accrue their pro-rata share based on the number of TLX/SNX held in the transaction contract on each day.
Users that withdraw a portion of their SNX from the contract will still accrue earnable sUSD, but their pro-rata share of earnable sUSD will reduce (assuming no one else withdrew).
All sUSD earned will be distributed within a week of the final vesting day (i.e., before May 12th).
TIP 14 was first published on November 26th, 2024 in the TLX governance forum by Synthetix strategy lead Benjamin Celermajer. As outlined by the proposal, Synthetix sought to acquire TLX as a means to quickly expand their product offerings. Through the acquisition Synthetix would get its first end-customer, revenue-generating product along with access to enhanced branding, growth opportunities, and marketing positioning.
The vision of TLX was to utilize the Synthetix Liquidity Layer to create the best leveraged tokens protocol in DeFi. In many ways, TLX fulfilled this vision through accomplishments such as:
Being the first to support on-chain leveraged tokens for long-tail assets like $PEPE, $DOGE, and $SUI
Supporting high leverage factors (e.g. 7x $ETH LTs)
Launching new DeFi primitives such as delta-neutral LP tokens
Facilitating over $500m in notional trading volume and nearly 100,000 total trades
Generating over $750,000 in protocol fees
TIP 14 presented the TLX community with a difficult scenario. Synthetix had pivoted from its liquidity layer vision, which TLX is built on top of, to moving everything in-house. Instead of focusing on supporting integrators, Synthetix was now planning on launching its own leveraged tokens. Ultimately, this meant that the TLX community was left with two choices. Stay and compete with Synthetix or join them.
We know that for many in the TLX community, this was not the outcome that they had hoped for. However, we stand by this governance decision and firmly believe it's the best path forward for all users. It's been an incredible journey and we'd like to thank everyone in the community who supported us. Through your support, you made TLX not only possible but something truly special. Finally, for any outstanding questions, or for those who'd like to stay connected, you can find us on Discord.
On December 4th, 2024, after receiving a majority vote, Synthetix's acquisition of TLX became official. The acquisition will happen via a token-for-token transaction that was approved via SIP-412 and TIP-14. All TLX users and holders should read this blog to understand key details of the acquisition and the next steps going forward.
Over the coming weeks, a conversion contract will be created that allows holders to convert their $TLX to $SNX. The primary attributes of the contract are as follows:
18 TLX will convert to 1 SNX
There will be a 1-month lock, followed by a 4-month linear vesting period.
Holders can redeem the portion of their SNX that has vested anytime during the 4-month vest.
Neither TLX nor Synthetix Treasuries will be converting their TLX tokens, instead they will be burning them.
The lock period for all TLX holders started on December 5th, 2024, no matter when TLX tokens are sent to the contract.
After 2 years, any TLX not sent to the contract will be deemed lost and will not convert into SNX.
After the 5-month lock/vest concludes, 700k sUSD will be distributed to the TLX community as follows:
4,635.77 sUSD will be ‘earnable’ per day (700k over 151 days) - this will be adjusted to reflect the number of days from the contract launch to the 5th of May (e.g., 4,761.90 sUSD each day for 147 days if it were today).
Users will accrue their pro-rata share based on the number of TLX/SNX held in the transaction contract on each day.
Users that withdraw a portion of their SNX from the contract will still accrue earnable sUSD, but their pro-rata share of earnable sUSD will reduce (assuming no one else withdrew).
All sUSD earned will be distributed within a week of the final vesting day (i.e., before May 12th).
TIP 14 was first published on November 26th, 2024 in the TLX governance forum by Synthetix strategy lead Benjamin Celermajer. As outlined by the proposal, Synthetix sought to acquire TLX as a means to quickly expand their product offerings. Through the acquisition Synthetix would get its first end-customer, revenue-generating product along with access to enhanced branding, growth opportunities, and marketing positioning.
The vision of TLX was to utilize the Synthetix Liquidity Layer to create the best leveraged tokens protocol in DeFi. In many ways, TLX fulfilled this vision through accomplishments such as:
Being the first to support on-chain leveraged tokens for long-tail assets like $PEPE, $DOGE, and $SUI
Supporting high leverage factors (e.g. 7x $ETH LTs)
Launching new DeFi primitives such as delta-neutral LP tokens
Facilitating over $500m in notional trading volume and nearly 100,000 total trades
Generating over $750,000 in protocol fees
TIP 14 presented the TLX community with a difficult scenario. Synthetix had pivoted from its liquidity layer vision, which TLX is built on top of, to moving everything in-house. Instead of focusing on supporting integrators, Synthetix was now planning on launching its own leveraged tokens. Ultimately, this meant that the TLX community was left with two choices. Stay and compete with Synthetix or join them.
We know that for many in the TLX community, this was not the outcome that they had hoped for. However, we stand by this governance decision and firmly believe it's the best path forward for all users. It's been an incredible journey and we'd like to thank everyone in the community who supported us. Through your support, you made TLX not only possible but something truly special. Finally, for any outstanding questions, or for those who'd like to stay connected, you can find us on Discord.
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