Synthetix (SNX), the increasingly popular Ethereum-based decentralized finance (DeFi) app, launched the full version of its on-chain synthetic derivatives protocol yesterday.
A Long-Awaited Feature
A much-awaited feature of the popular DeFi app Synthetix went live yesterday afternoon.
The Synthetix derivative liquidity protocol first initially launched back in 2018. It allows users to issue smart contracts, known as Synths, that track and provide the returns of other assets.
These assets vary from equities and cryptocurrencies to well, just about anything.
SNX, the platform’s native token, is used to provide collateral against Synths that are issued – currently, it is the world’s 56th largest token by market cap with a valuation of $2 billion.
Stonks on Synthetix?!
Let me to the chase: does this mean stonks on Synthetix?
Yes. Synthetic Apple stock (sAAPL), Synthetic Amazon stock (sAMZN), Synthetic Netflix stock (sNFLX), Synthetic Facebook stock (sFB), and Synthetic Google stock (sGOOG) — colloquially called “FAANG” stocks are now tradeable Synths on the Synthetix platform.
All stocks are tradable for other Synths at zero slippage*.
*What Is Slippage? – Slippage is the difference between the expected price of a trade versus the price a trade executes for, regardless of trade size.
Liquidity With LINK
The pricing of all Synths is determined using Chainlink (LINK) oracles, the blockchain industry-standard decentralized oracle network.
LINK secures the connection between real-world data and smart contracts – this ensures that all Synths are in line with the actual prices of their respective assets.
Meanwhile, to ensure a liquid trading environment during off-market hours, Synthetix would be providing 2000 SNX per pool (against sUSD, which accounts for 80% of each liquidity pool) for a total of 50,000 SNX tokens.