Synthetix

What is Synthetics?

Synthetix Token, or SNX, is a native token Synthetics – decentralized financial platform for issuing synthetic cryptocurrency-based assets known as Synths.

SNX runs on the Ethereum blockchain and is based on the ERC-20 token standard.

The main feature of SNX is that it serves provision for network users who require synthetic assets. This means that in order to receive synthetic assets, holders must stake their SNX tokens. These tokens are then locked into a smart contract to issue new synthetic assets.

The price of Synthetix is ​​greatly influenced by the unique inflation model implemented in the Synthetix ecosystem. the inflation rate will increase over time until it reaches 2.5%.

This model was implemented to avoid risks associated with halving events. This feature should ensure relative price stability for SNX.

SNX holders receive exclusive benefits such as cryptocurrency rewards simply for staking their Synthetix tokens. These rewards are called exchange rewards and staking rewards. They are paid weekly.

Exchange of rewards comes from transaction fees charged by Synthetix. They can be as high as 1% of the original trading value, but usually remain around 0.3%. On the other side, bet reward occur due to inflationary supply of SNX tokens.

In addition to receiving loans, SNX can be used to trading within the Synthethix ecosystem.

For more details about Synthetix price, you can check the chart above.

What is a synthetic asset?

A synthetic asset, or Synth, is digital tokenized derivative this allows holders to predict price movements and minimize risk. Total exists 5 types of synthesizers that track price:

• Cryptocurrencies;
• Forex currencies;
• Index;
• Goods;
• Assets in reverse order.

What are the main features of Synthetics?

As mentioned above when discussing what Synthetix is, we have established that it is a decentralized platform that allows the issuance of synthetic assets. This means that users can gain access to underlying digital assets without owning them, using Synths. These underlying assets are tracked oracles.

Additionally, Synthetix facilitates synth trading in a decentralized manner.

In terms of governance, the Synthetix crypto project was governed by two different models. From launch until 2020, the Synthetix Foundation took responsibility for managing the project. The Synthetix Foundation has implemented 2 unique proposal management mechanisms:

• Suggestion for improvement of Synthetixor SIP manages the offerings associated with the Synthethix smart contract;
• Suggestion for changing the Synthetix configurationor SCCP, handles changes related to configuration variables.

This governance model was abolished in July 2020 in hopes of increasing decentralization through decentralized autonomous organization (DAO) model which was divided into 3 DAOs:

• ProtocolDAO;
• GrantsDAO;
• SyntheticDAO.

Who developed Synthetics?

The Synthetix crypto project was founded Kane Warwick at the end of 2017. It entered the market at a time when the only stablecoin available was USDT.

It was originally presented as Haven and received $30,000,000 from investors who purchased over 60,000,000 SNX tokens.

In November 2018, the project underwent rebranding and received a new name – Synthetics.

Before founding Synthetix, Kane Warwick worked on another Australian project based on blockchain technologies, the payment platform Blueshyft. It was launched in 2014 and has since spread throughout the world. He also gained valuable experience as CEO of Pouncer, an auction-based trading platform.

The Synthetix cryptocurrency project is supported by a board of consultants with different professional backgrounds. It includes Walter De Brouwer, Matthew Di Ferrante and Renqi Shen, as well as many other prominent individuals.