Hey guys, I’m back with another How to type of post from my series. All of these have been a major success so far, so I take it that you like the breakdowns and I intend to publish at least 3-4 of these every week.
Just a quick reminder: during the weekend I will be doing an overview of what’s arguably the most hyped-up token sale coming up next week. So hit that follow button not to miss out on it!
Also, since I’m working with MXC.co, I did two very comprehensive guides that you can also check out:
In the following days, I will also create a fully-fledged, easy-to-follow guide on how to use MXC’s spot exchange.
I also plan on starting some sort of a Trading Academy section where I will be breaking down main technical and fundamental concepts, but I’m still figuring out how to best put it together.
If you have something interesting that you want me to write about, please leave a comment below! Now, let’s get started.
What is Synthetix Network?
This is a project that’s part of the Decentralized Finance (DeFi) subsection of the blockchain field. This is the reason you’ve been hearing about it more and more recently.
According to the project’s Litepaper, Synthetix is a decentralized synthetic asset issuance protocol built on Ethereum. This might sound a little confusing. In essence, it’s a platform that enables users to create synthetic assets, collateralized by the Synthetix Network Token.
Put simply, users are able to create different Ethereum-based assets which are collateralized by SNX, the platform’s native cryptocurrency. Some examples include:
- Forex - these track the price of forex currencies
- Commodities - these track the price of commodities
- Crypto - the same thing
- Indices - sNIKKEI, for instance, is a synthetic asset that tracks the price of the Nikkei index.
You get the gist. Now, there are also inverse synthetics, also called iSynths. These allow users to essentially short the underlying asset. So, for example, if you wrap one BTC through the inverse system it becomes iBTC. Imagine you’ve added it to the system when sBTC was $1,000 - once sBTC drops to $900, iBTC will increase to $1,100. It’s that simple.
What is SNX?
All the synthetic assets on the network are backed by SNX tokens. They are minted when SNX holders stake their SNX as collateral using Mintr - this is a DApp that interacts with Synthetix contacts.
Currently, Synths are backed by a 750% collateralization ration, though this might be increased or lowered going forward through the community governance mechanism.
SNX holders are incentivized to stake tokens in a few different ways. They receive exchange rewards in the form of fees. They also get staking rewards from the protocol’s monetary policy, which is inflationary.
Now, let’s have a look at SNX’s price performance.
Since the beginning of July, which was three days ago, by the way, SNX jumped to $2.5, which represents an increase of around 15%.
Currently, you can trade SNX against USDT and against ETH on MXC.co - the spot exchange.
If you want to trade SNX at MXC, you can register for an account using this link or the below image. It requires absolutely no KYC and all you have to do is use your email.
The links are my referral links. It would mean the world to me if you registered using them since I will receive a tiny commission on your trading fees which helps me keep this profile up and running and provide more awesome content for you guys!
Disclaimer: None of the above content is financial advice. The information hereby provided is for educational purposes only. Do your own research before investing in cryptocurrency. Trading cryptocurrency, especially with leverage, comes with a serious risk of capital loss. Be careful! Never trade with money that you can’t afford to lose!