Sirwin
Sirwin

Why I Invested Into Synthetix & SNX Token

By Cryptofab | Cointune | 11 May 2023


As a user of the Synthetix protocol since its early stages, I've witnessed firsthand the growth and evolution of this decentralized finance (DeFi) platform. Synthetix.io has truly revolutionized the way we interact with synthetic assets on the blockchain.

One of the standout advantages of Synthetix.io is its integration with the Optimism network, a layer 2 solution that addresses the scalability challenges of Ethereum. This integration has significantly reduced transaction costs, enabling users to trade and interact with the SNX token and synthetic assets with low gas fees.

Comparing Synthetix.io's use of the Optimism network to GMX.io's success on Arbitrum, another layer 2 solution, we can see the huge potential for growth of the SNX token. GMX.io's achievements have demonstrated the scalability benefits of layer 2 solutions, attracting a substantial user base and increasing demand for its native token. On top of that, SNX stakers earn a part of the fees earned on the protocol, and SNX tokenomics are excellent since almost all the tokens have already been minted and hence the circulating supply is 99.8% of the max supply...

Moreover, what makes Synthetix.io truly fascinating is its integration with Kwenta, a decentralized exchange built on top of Synthetix. Kwenta allows users to engage in leverage trading by utilizing sUSD, the stablecoin minted on the Synthetix protocol. This combination of Synthetix.io and Kwenta enables users to explore advanced trading strategies and maximize their returns.

By providing a robust infrastructure for synthetic assets and leveraging the power of Kwenta, Synthetix.io continues to attract both experienced traders and newcomers to the DeFi space, as shown on the L2 (Optimism) SNX monthly fee graph below :

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In conclusion, as a long-time user of Synthetix.io, I'm excited to witness the continued advancements and innovations within the protocol. 

Disclaimer: The information provided in this post is for informational purposes only and should not be considered financial or investment advice.

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Cryptofab
Cryptofab

Studying Bitcoin, Alts & Arts.


Cointune
Cointune

Crypto, DeFi and passive income.

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