The trend of DeFi on the Ethereum network is a big trend who got a lot of attention lately. The hype in the crypto world is something that has a short span of time and you need to keep the community engaged. You need to always innovate with new features and functionalities to keep them happy.
This applies even with new trends as we experience it with the emergence of DeFi.
The whole idea behind what Synthetix tries to accomplish can be beneficial for the future. We need to have access to products in which we can invest without the need for centralization and high fees and abuses.
The idea of Synthetix
On paper, the idea of Synthetix is something exiting that can be beneficial in the future. At least the website has two DAPPS that you can use right out of the box.
You can be exposed to a variety of assets without the need to hold them physically. The most exciting part about this project, everything happens in an environment where you do not need to send your funds to a central exchange.
You trade with the following options:
- Trezor cold wallet.
- Ledger cold wallet.
- Metamask plugin on the Ethereum network.
As you can see from this picture, this is the whole idea behind Synthetix.
My first impression
It is not the sexiest interface for trading and there is room for a lot of improvement. It is important to implement something easy that you can understand quickly.
The DAPP to access the exchange Synthetix is very slow to connect with Metamask. This is something they need to work on because the speed is something we expect. Especially in an environment where you need to buy and sell your position.
I believe the team is aware of this issue and might fix it in the coming weeks or months. I know development is something that takes time and sometimes we need to have patience.
The stablecoin sUSD
On the main page, I see the stablecoin sUSD cannot hold the value of 1$. The asset always keeps his value around 0.986 and this is not good.
When you want to trade or buy an asset, you want stability on the price. We all know it is not the case with assets like Bitcoin or Litecoin.
Another thing I think they need to improve about sUSD to invest in their platform. There is a minimum requirement of $50 to be able to stake.
They forgot that many people in the world don't have much money and this amount can be astonished. This is something they need to improve and change immediately.
What will I do
It is not a platform in which I will invest in the current state even if it offers a staking option. Staking is a mechanism to make interest if you stake the tokens and you receive interests from the inflation.
What bothers me the most is the interaction with decentralized exchange which is so slow. The experience was not so great and that is especially the reason why I will not spend more time on this project in the current state.
I subscribed to their blog to see their evolution. Maybe in the future, I will change my mind, who knows!
The whole idea is something wonderful to have in the realm of a decentralized world. In the current state, the product is too slow and the stablecoin is not pegged at $1.
The project has room for improvement in the user interface. I will pay attention and follow them to see their progress.
You can check the Synthetix website to know more about the project.
Chesatochi.com – For the love of crypto and coffee
PS: I am not a financial adviser and this is only my own opinion. Always do your own research before to embrace any type of investment in the crypto space