Responding to 1,000%+ spike in Ethereum fees, Synthetix is testing layer-2 tech
It’s been quite the year for DeFi. But due to natural constraints on the Ethereum blockchain, this period of growth has meant that transaction fees have quickly reached unsustainable levels for most users where it makes little sense to transact small sums.
Synthetix, especially, has suffered from these high fees. Due to how the protocol works, users looking to interact with Synthetix’s multiple products often pay high transaction fees, even when doing basic tasks.
One user, “Lukazo,” commented on Reddit earlier this year that he paid $8 to stake $230 in Synthetix Network Token — and that was when gas fees were around 50-80 percent below what they are now. This is one of many of these sorts of complaints or concerns issued over recent months.
Responding to this, Synthetix is moving forward with attempting to migrate some aspects of the protocol to a layer-two scaling solution to better the user experience.