What is Synthetix (SNX)? Everything you need to know SNX token

This year has seen significant developments in the DeFi ecosystem. The majority of traditional financial products are now available in DeFi and are becoming more diverse.

The Synthetix project will be introduced in today's article as a pioneering project in the field of synthetic assets.

So, what exactly is Synthetix? How does it work properly?  What is the function of Synthetix's token? In this article, we'll find out together.

What is Synthetix?

Synthetix is a protocol used on the Ethereum network to trade or issue synthetic assets. Every asset that exists outside of the network will be transformed into an asset in the form of ERC-20 tokens. This token will be valued the same as the supplied assets.

BTC, for example, will be tracked as sBTC and have the same value after being deposited as a synthetic asset.

The collateral will be recognized as Synths and will be backed by the Synthetix Network Token (SNX). To achieve decentralization and transparency, these Synths will use a synthetic collateral concept and operate on smart contracts.

Synthetix accepts not only digital assets, but also currencies, commodities, and stocks.

How does Synthetix work?

Synthetix's mode of action is to track the prices of representative assets via decentralized oracles, allowing you to retain and spend Synths for a range of activities. Users will have to deposit a sort of collateral that they hold outside of the network in order to use the assets.

Users can engage in a straightforward manner by mortgaging existing assets, swapping existing assets for another asset class, and then beginning to use the resulting crypto asset.

As a result, the project optimizes your ability to utilize capital not only for your crypto assets, but also for other asset classes such as gold, stocks, or stocks.

Users can deploy synthetic assets for network operations to gain profits without impacting their existing capital after acquiring them. For example,  providing liquidity on DEX platforms.

Synthetix has the following key services on its network to serve its users:

Kwenta Exchange

Kwenta is a trading dApp that leverages the Synthetix protocol's main use-case: trading between synthetic assets.

Staking Platform

This protocol enables SNX stakers to mint and burn Synths in order to manage their collateralization ratio, claim to stake incentives, track any swings in their debt, and perform a variety of other network tasks.

Furthermore, the staking platform has governance and lending features, allowing users to borrow other synths such as sETH or sBTC.

Dashboard

The Synthetix dashboard is a public interface that provides information about system metrics, including as trade volume, staking, open interest in Synths, and more.

What is SNX token?

The SNX tokens used in the Synthetix ecosystem are as follows:

• SNX used to Stake and receive Reward is SNX token.
• Used to lock as collateral to release Synth to the market.
• Pay trading fees on Synthetix DEX.

Detailed information about SNX token

SNX Token Metrics

• Blockchain: Ethereum
• Token type: Utility
• Token Standard: ERC-20
• Ticker: SNX
• Contract: 0xC011A72400E58ecD99Ee497CF89E3775d4bd732F
• Total supply: 245,312,500 SNX
• Circulating Supply: 114,841,533  SNX

SNX Token Allocation

SNX Token Release Schedule

How to buy SNX 

You can purchase SNX via these exchanges such as:

• CEX: Binance, Houbi, Coinbase,...
• DEX: Uniswap, Sushiswap,...

You can also swap and buy CRO Token directly at the Coin98 Exchange interface at the end of this article! Coin98 Exchange is a decentralized exchange (DEX), a Multi-chain liquidity aggregator that offers users a wide variety of DeFi services (swap, stake, lend, borrow,...) through intuitive and simple interfaces. 

Learn more: How to use Coin98 Exchange 

How to mine SNX

Users can mint SNX on the Staking Platform.

How to store SNX

You can store SNX token on Coin98 Super App with these steps:

Step 1: Open Coin98 Super App. In Wallet Section, click Receive.

Step 2: Search SNX Token.

Step 3: Click on the correct result, copy the wallet address and send SNX to this address.

Roadmaps and Updates

In 2021, although the project does not disclose the roadmap, there are some following features that will be focused on development such as:

• Governance Improvements.
• Synthetix V3.
• Synthetic Futures.
• Asset expansion.
• dApp Upgrades.
• OptionsDAO.
• Optimistic Ethereum.

Team, Investors, and Partners

Team

• Kain Warwick - Founder.
• Justin Moses - CTO.
• Jordan Momtazi - COO.
• Clinton Ennis - Engineering Lead.

Investors

Synthetix has raised a total of $46.1 million in five rounds of investment. 

In addition, the project is also invested by Coinbase.

Partners

Synthetix's partners are quite diverse, including projects in infrastructure and AMM, such as: Chainlink, Optimism, Curve, Gnosis, Thorchain, RelayPay.

Is SNX a good investment?

This article has provided some of the main ideas related to the SNX token and its implications. There is no financial advice in this post because it is intended to give you a thorough understanding of the project

However, it is important to note that there are a few key points that investors should take into account before making investment decisions:

Synthetix has had rapid growth since the beginning of the year. There hasn't been any movement since the total value locked amount surpassed ATH at $2.8 billion in February 2021, and it's showing indications of saturation at $2 billion. With DeFi becoming increasingly diverse, the project's services will need to be expanded further in the future.

Currently, the DeFi world is moving at a tremendous speed, leading to the creation of one of the many projects, one of which is Synthetix. The project, however, is built on Ethereum only. With a rising number of various blockchains such as Binance Smart Chain or Solana.

Recently, the project recently expanded its ecosystem widely by supporting various platforms to leverage the deep liquidity and composability of Synthetix.

Conclusion

I hope you have gained all of the important information about SNX including its features and highlights throughout this topic.

If you have any questions about SNX or want to know more about SNX, please feel free to leave a comment below and join Coin98 Community for further discussions about Crypto.