Synthetix (SNX), a decentralized liquidity provisioning protocol, is entering a new era with the recent launch of Andromeda, an update that has brought a deflationary mechanism to the protocol’s Perps V3 engine. According to the shared update On its official
Synthetix (SNX), a decentralized liquidity provisioning protocol, is entering a new era with the recent launch of Andromeda, an update that has brought a deflationary mechanism to the protocol’s Perps V3 engine. According to the shared update On its official
This deflationary momentum from Synthetix depends on the proper distribution of fees generated by the protocol across its multi-chain implementations. According to the fee distribution breakdown suggested on Base, 40% will be allocated to SNX buyback and burn, 20% will go to Perps Integrators, and USDC liquidity providers will get 40% of the remaining funds.
The buy-burn and Andromeda upgrade are part of SIP-345, which brings more than just the deflationary change to the Synthetix ecosystem. The liquidity provider has also expanded its collateral base with the addition of USDC on Base.
Synthetix’s goals with the launch are multifaceted and, in addition to improving the protocol’s overall outlook by reducing the supply of SNX, it also makes it more attractive to developers, traders, and liquidity providers, among other stakeholders.
Synthetix (SNX) Price Impact
Synthetix is one of the leading DeFi protocols with intriguing price action that will benefit in the long term after this deflationary upgrade.
Following the basic laws of supply and demand, the possible drop in Synthetix supply and the probable increase in SNX accumulation may push the price to new highs.
At the time of writing, Synthetix was trading at a price of $3.47, up 2.47% in the last 24 hours, an impressive performance at a time when most altcoins are in a bearish trend. . Synthetix’s latest update mimics the protocol’s related moves as it seeks to bolster its appeal ahead of the market’s bull cycle.
