Why The DeFi Synthetix Network Token (SNX) Is Mooning πŸš€
Synthetix Network

Why The DeFi Synthetix Network Token (SNX) Is Mooning πŸš€

Decentralized projects are the ones that I believe stand to make significant gains and provide very interesting passive income opportunities over the coming years. One of my favorite decentralized projects is the Synthetix Network. It is one of the most hyped Decentralized Finance Projects in the crypto world right now with a market cap exploding. So what is all the fuss about?

What Are Synthetic Assets?

Synthetix is a decentralized synthetic asset platform. This means that Synthetix can provide on-chain exposure to real-world currencies, commodities, stocks, and indices via their synthetic on-chain token.Β 

So synthetic assets are not just a crypto thing. Indeed almost every market in the world uses synthetic assets for trading. A synthetic asset is a simulated representation of a real-world asset. These synthetic assets are called Synths. The values of Synths are provided by external price feeds fed on-chain. For example, Commodity Synths track the price of commodities via price feeds supplied by Chainlink's oracle network of distributed node operators.


What Is The Synthetix Network?

In short Synthetix Network is a trading platform for synthetic assets, build on the Ethereum blockchain. You have categories of Synths to choose from. These include fiat currencies like the USD or EUR, cryptocurrencies like Bitcoin or Ethereum, commodities like gold and silver, and stocks like Tesla or Apple.

So the cool thing about Synthetix Network is that anything with a price data feed can technically be traded on the Synthetix Exchange. That`s exactly the potential that I am talking about here in my post.

However, it doesn`t stop there. In traditional trading, there is something known as an exchange-traded fund or ETF. Many ETFs commonly hold a basket of different assets focused on a particular sector and trade freely on the stock exchange. These financial products enable you to buy a basket of stocks or commodities.

The Synthetix Network has some benefits. First of all, it is decentralized. This means that there is no KYC required. It is non-custodial, so you alone hold the keys to your synthetic assets. You also don`t have to worry about liquidity because synthetic assets are traded trough the minting and burning of synthetic tokens and new tokens can always be minted.

The Synthetix Network Token (SNX)

All the synthetic assets that are traded on the Synthetix exchange are backed by the Synthetix Network Token (SNX). SNX is an ERC20 token running on the Ethereum Blockchain.

Synthetix Network Token`s price today is $1.67. It has a circulating supply of 110 Million coins and a max supply of 191 Million coins. SNX has already jumped to market cap rank #44.

You can trade SNX on exchanges like Probit, KuCoin, or Eterbase.

If you are looking for any SNX airdrop, be aware that there is no SNX airdrop. If you see any Synthetix Airdrop, for example in Telegram Groups or on Twitter, be aware that this is just a scam. There is no Synthetix Airdrop!

SNX Staking

SNX is a stakable token. When you stake your SNX you will receive back your trading fees. With one percent per week, the SNX staking rewards are pretty high.

Additionally, you are also going to benefit from staking SNX because of its inflationary policy. From March 2019 to August 2023 the SNX token supply will increase from 100 million to a little more than 260 million. Then after August 2023, there will be constant yearly inflation of 2.5%. This means that at a long term play, it really pays out to get in soon. Stake it and then just lean back for a few years. The whale shares of SNX staking are happening in the first few years, which means it is happening right now.

However, there are some important things you should know before you start staking SNX for the first time. It is important that you understand the basic mechanics of the SNX staking system before you start.

  • Staking requires weekly action. SNX rewards must be manually claimed each fee period (i.e. once a week) or they will be returned to the pool and redistributed to other stakers.
  • Keep your collateralization ratio at or above 750% to receive a portion of the additional SNX added to the supply.
  • Gas costs are higher than most other protocols on Ethereum.
  • SNX Staking Rewards cannot be transferred for one year.

Before you start staking SNX, I recommend reading the post "What you need to know before staking SNX for the first time" published by @Synthetix-Network.

Final Thoughts

Nothing in my post is sponsored, it really reflects my own opinion. I am really excited about the potential of Synthetix since I have started my research on this project.

Nevertheless, please keep in mind that my intention in this post is not to replace your own research. Always #DYOR. πŸ‘Œ

I hope I could provide you with some interesting and useful information about Synthetix Network.

Thank you guys for reading, liking, following, and tipping πŸ‘

If you like, you can also follow me onΒ Twitter.

You may also like: TOP 5 Decentralized DEX & DeFi Altcoins Primed For Gains

Cryptonator`s Airdrop Hunt
Cryptonator`s Airdrop Hunt

I look like an expert.

Cryptonator`s Airdrop Hunt
Cryptonator`s Airdrop Hunt

Better be prepared when you go Airdrop Hunting.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.