SynFutures CEO Rachel Lynn talks about the future of trading

As on-chain liquidity deepens and decentralized exchanges quietly absorb market share once dominated by centralized platforms, the question is no longer whether DeFi can compete, but how far it can go.

Rachel Lin, co-founder and CEO of SynFutures, is at the center of that change. A former global market executive at Deutsche Bank and founding partner at Matrixport, Lin brings a rare combination of TradFi rigor and DeFi-native execution to decentralized derivatives.

In this Q&A, she details why order book DEXs are closing the gap with CEXs, how recent exchange failures have forever changed user trust, and how on-chain markets will evolve from financial replicas to entirely new systems.

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How do you think the balance between centralized exchanges (CEX) and decentralized exchanges (DEX) will change as on-chain liquidity becomes deeper?

phosphorus: We are already seeing visible changes in the market balance. From a numbers perspective, in the second quarter alone, DEXs facilitated nearly $900 billion in spot trading volume, while CEX trading volume plummeted, with the trading volume ratio at an all-time low. What has changed is that DEXs can now offer the speed, depth, and quality of execution that previously belonged to centralized platforms.

What advantages does a platform like SynFutures have over traditional CEX?

phosphorus: SynFutures is the only true decentralized orderbook Perp DEX on the market, combining orderbook and AMM models to enhance liquidity and trading efficiency, with matching and settlement all done on-chain. Efficient execution and capital efficiency are particularly important for derivatives, where fragmented liquidity and expiration of contracts create unnecessary complexity. Combined with reduced block times and adaptive risk controls, it allows markets to operate predictably even during volatility. The architectural benefits of transparent execution, permissionless access, and self-management are becoming increasingly difficult for traditional CEX to replicate.

What do you think are the most important factors driving users from CEX to DEX, especially regarding the growing interest in self-custody and transparent liquidity?

phosphorus: Self-control is part of it, but the deeper factor is predictability. The Celsius and FTX debacles fundamentally changed the way users assess risk. With over $11 billion lost to CEXs due to hacks and mismanagement (a number that far exceeds losses caused by DeFi protocols), users want to see liquidity, verify execution, and maintain custody of their assets, all of which are provided by default by DEXs.

phosphorus: Apart from transparency, DEXs like ours apply more security restrictions in case liquidity deteriorates in stressful market environments. For example, we separate margins for pairs with insufficient liquidity and automatically reduce leverage if open interest is too large. These user protection measures as part of the experience help build user trust over time.

We’ve seen more liquidity move to DEXs, but do you think CEXs will eventually become obsolete or do you think they still have a long-term role in the ecosystem?

phosphorus: I don’t think CEX will disappear overnight, but its role is changing. They will continue to be important as legal ramps, distribution and access points in many regions. We are already seeing centralized exchanges integrating on-chain infrastructure through routing liquidity through DEXs and partnering with DeFi protocols. This is a response to where traders are moving and core activities are moving on-chain.

However, layering decentralized functionality onto a centralized infrastructure does not remove fundamental limitations around trust, flexibility, and network effects. Unless centralized exchanges undergo fundamental reform over the long term, they risk becoming access points and interfaces on top of decentralized systems.

What are the main technical and regulatory hurdles that need to be overcome to go on-chain? borrow, lend, trade reality?

phosphorus: Technological barriers are rapidly lowering as blockchain performance improves and infrastructure becomes more robust. Improvements in latency, execution speed, and capital efficiency have already enabled complex products, including derivatives, to be executed entirely on-chain, and scalable lending markets. The next phase will include improvements such as better risk management, deeper cross-chain liquidity, and a more user-friendly UX/UI for mass adoption.

phosphorus: On the regulatory front, development is still at an early stage and the regulatory framework is fragmented. However, it is encouraging that the inherent auditability of on-chain systems actually aligns well with regulatory goals. The challenge is to ensure that regulations recognize this transparency and automation as strengths. Regulatory clarity is important, and many major DeFi protocols are actively engaged in policy discussions to drive that change.

How do you see traditional financial institutions adapting to a fully on-chain financial ecosystem, and do you think there will be resistance from the TradFi giants?

phosphorus: The on-chain system has many advantages that cannot be ignored for TradFi. Ultimately, blockchain is a revolutionary infrastructure technology that enables continuous payments, reduced counterparty risk, reduced operational overhead, and global reach. It’s a race they can’t afford to lose.

However, there may also be resistance from the traditional banking system and regulatory concerns that may slow implementation. But as they experiment with tokenized goods, stablecoins, and blockchain-based credit markets, the benefits are clear and market forces tend to win over the holdouts.

In your opinion, what is the next big innovation or breakthrough that will make on-chain financial services more scalable and available to the masses?

phosphorus: Many technologies are built with ease of use in mind. For example, wallet and interface abstractions now support email sign-ups, making decentralized finance simpler and more accessible to laypeople. Essentially, users do not need to understand the underlying complexity to gain its benefits.

Next comes the integration of these modular infrastructures. Improving the interoperability of different chains, protocols, and liquidity pools allows assets and users to move more seamlessly, reducing fragmentation and creating a more intuitive experience.

There is a widespread theory that tokenization of real-world assets (RWA) is the main focus of blockchain adoption in the financial sector. do you agree?

phosphorus: RWA is important, but it’s not the only thing. While tokenization can improve access and efficiency to existing markets, the real advancement in DeFi will be enabling entirely new forms of market structures and instruments that previously existed in the TradFi market.

That said, replicating the TradFi product at this stage is critical, as it demonstrates the permissionless and programmable capabilities of blockchain and its potential to design, launch, and trade new financial products that operate globally.

What is your outlook on the idea that the future of finance is not just about bringing traditional financial products to blockchain, but about creating entirely new markets and assets that were previously unimaginable with TradFi?

phosphorus:I strongly agree. Decentralized finance is most meaningful when it reaches its innovative potential and moves away from traditional finance. The ultimate goal is not to bring Wall Street into DeFi, but to create entirely new markets and assets. Blockchain offers inherent programmability and permissionlessness that TradFi cannot match, allowing it to create virtual markets around any asset, index, or even identity.

What surprised you in 2025? Is there anything that concerns you about the sector heading into 2026?

phosphorus: Basically, Web3 and DeFi have never been in a better place. Scalability and speed have increased dramatically, with high-performance chains like Monad achieving record transaction speeds and fees of just a few cents.

As global regulators ramp up their efforts on cryptocurrencies, we are already seeing how users are turning to DeFi and how disproportionate decentralized platforms are gaining new liquidity. And unlike previous cycles, this change was not driven by incentives alone, but by trust in a platform that combines transparency, risk management, and reliable execution. As more chains and ecosystems emerge towards 2026, interoperability and ease of use will determine how smoothly DeFi scales up to its next phase.

Overall, I’m very positive about the outlook. There are clear signs that DeFi is becoming truly accessible to a wider range of users, including email onboarding, seamless bridging, the mainstreaming of crypto cards, and the rapid adoption of stablecoins.

SynFutures is at the forefront of decentralized derivatives. As CEO, how do you see SynFutures evolving over the next five years?

phosphorus: Over the next five years, we see SynFutures evolving from a single derivatives exchange to a core infrastructure provider for on-chain markets.

On the product side, we see globally traded highly liquid RWAs as a natural extension of on-chain derivatives. Our early support for RWA markets such as gold and oil is just the beginning. As payment rails mature, we expect a wider range of RWA to move on-chain and PERP to become the most efficient way to trade them.

Equally important is how these markets are structured. Rather than trying to own all the interfaces ourselves, we launched a builder program that allows independent teams to build on our time-tested infrastructure while leveraging existing liquidity and risk management.

In 2026, we are focused on launching a new SynFutures protocol mainnet on a Perp-optimized chain with faster execution, lower fees, and a smoother, more CEX-like UX, with upgrades designed to support deeper liquidity and more stable trading.

We’re also expanding supported assets (including upcoming stocks and index products), shipping mobile, and continuing to upgrade our governance. Details are subject to change as development progresses.

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