Introduction (Legacy)

Synthetix V2 Perps is the legacy perpetual futures trading system on Optimism. It was a pioneering platform for on-chain derivatives trading within the Synthetix ecosystem but has since been succeeded by Perps V3, which offers a more advanced, flexible, and efficient trading experience. While Perps V2 continues to operate, its primary users are traders with existing positions on Optimism or those holding significant amounts of sUSD.

Key Characteristics of Perps V2

1. Legacy Platform Perps V2 is maintained for compatibility with traders who opened positions before the transition to Perps V3. It is no longer actively developed or promoted as a trading solution.

2. sUSD-Only Collateral Trades on Perps V2 require sUSD as collateral, making it less flexible than Perps V3, which supports a broader range of collateral types.

3. Fixed Functionality The system uses static funding rate calculations, basic liquidation mechanisms, and non-customizable market parameters. These limitations make it less adaptable compared to Perps V3’s modular design.

4. Optimism Layer 2 Scaling While Perps V2 benefits from Optimism’s scalability, it lacks the gas efficiency improvements and streamlined user experience offered by Perps V3.

5. Isolated Margin V2 does not allow for cross margin positions, which leads to less capital efficiency across a portfolio.

Why Perps V2 is a Legacy System

Perps V2 was an important milestone for Synthetix, but it has been eclipsed by Perps V3 due to the latter’s superior design and flexibility. Key limitations of Perps V2 include:

• Lack of support for diverse collateral types.

• Rigid system parameters that cannot adapt to market demands.

• Limited gas optimizations compared to Perps V3.

For new traders and those seeking the best trading experience, Perps V3 is the recommended platform. It introduces modular markets, cross-margining, expanded collateral options, and improved efficiency.