DeFi protocol Synthetix acquires leveraged token platform TLX

DeFi protocol Synthetix has acquired the leveraged token platform TLX via a token-for-token transaction.

The team that the acquisition is part of the protocol’s new strategy focused on designing a decentralized liquidity layer and becoming a primary product issuer on top of that layer. 

“The acquisition of TLX will mark the first end-customer, revenue-generating product built on top of Synthetix that will be owned and operated by Synthetix,” the protocol said in the announcement.

After a thorough audit of TLX products, Synthetix said it will improve parameters and redeploy all smart contracts in the coming weeks to re-launch TLX products on the Base network. TLX’s native token of the same name will be burned and converted to Synthetix’s token SNX.

“Once done, we will announce a juicy leveraged token incentive program to kick off 2025,” Synthetix stated.

Synthetix announced it would utilize TLX’s existing codebase as a foundation in designing the DeFi protocol’s leveraged tokens and allow the protocol to launch the tokens to market more quickly.

“Leveraged tokens are just the first category of structured products that Synthetix will be launching over the coming months,” Synthetix wrote. “This suite of products will help broaden Synthetix’s capabilities and generate more value for SNX stakeholders over the long term.”

Synthetix, founded in 2017 by Kain Warwick, lets users trade synthetic assets such as stocks, commodities and currencies on the Ethereum blockchain. The protocol currently holds a total value locked of $242 million, according to data from DefiLlama.