Hello friends, how are you today? I am going to show you how to STAKING with Synthetix Network Token.
Is a token that is quite popular and at the moment it is actually paying quite well as a staking and it is a very interesting project and can have quite future in my opinion, investigate it yourself, for example we can see at https://www.stakingrewards.com/asset/synthetix-network-token here you can calculate the reward here it tells us that it is 59.5% annual rate and for example here we can calculate how much it would give us 1000 SNX and it would give us 49.5864 SNX monthly $ 95.7
USD and annually 595.0373 SNX $ 1,148 as of this writing, it's quite interesting. Everything as long as the characteristics remain the same, at this moment 1000 SNX is equal to $ 1930 USD.
Synthetix Network Token is located in position 51 of the top 100 according to COINMARKETCAP, it is an ERC 20 token and at the moment the value of SNX is 1.91 USD the capitalization of this currency is $ 165,859,214 USD and the volume of 24 hours is of $ 8,640,532 USD Circulating Supply at this time is
86,773,183 SNX and a Total Supply 190,075,446 SNX
In March and April of last year (2019) the price was between 0.04 and 0.05 cents and it went up to the current 1.91 USD. Something important if you are going to STAKING you must learn that it is not only about STAKING for STAKING Here I leave you some LINKS in case you want to learn something more on your own. https://docs.synthetix.io/tokens/ https://www.synthetix.io/communityhttps://www.synthetix.io/litepaper https://blog.synthetix.io/
The project in summary is about this EXCHANGE called SYNTHTIX EXCHANGE dealing with synthetic assets, why synthetic assets ?.
Because these assets are not really backed by what they are representing then the assets are not backed by BTC, by GOLD or by SILVER.
So how does this exchange and synthetic assets work? It is very simple as it is done by the DAI cryptocurrency which is a STABLECOIN, which maintains the price of 1 USD is backed by cryptocurrencies unlike the other STABLECOIN that represent 1 USD that for each cryptocurrency there is 1 USD in a bank account but That system is centralized, instead with DAI it is through a smart contracts protocol that through this collateral that is cryptocurrencies ETH, BAT and others makes DAI keep the value of 1 USD constantly, so in the same way SNX has this system that everything is backed by SYNTHETIC NETWORK TOKEN well here there are different assets such as gold, silver, different cryptocurrencies, also AUD, JPY, GBP, there are different currencies, different assets, indices, etc., it is very interesting and everything is backed by SYNTHETIC NETWORK TOKEN through STAKING.
It is what we are going to do now let us STAKING.
To STAKING you will need to enter https://mintr.synthetix.io/
ok the first thing you need is SNX, in this case use UNISWAP which is a decentralized exchange, in this case I am going to change 100 DAI for SNX (remember not to put more than what you are willing to risk), start with little with the step of the time you understand more and get more experience or skill then you could already enter the amount you want (just click on SWAP and confirm)
at the time I was writing that the commission was quite high (remember that you have to wait for your payment to be processed, it is usually 1 to 2 minutes) at that moment 100 DAI exchange them for 90.33 SNX as you can see
Now if we go back to MINTR since you can connect enough wallets, this time I will use METAMASK you only need to sign up to open your wallet
Collateral is something very important as you can see, each asset that is in SNX is backed by 750% of its value, if an asset is worth 1 USD there is 7.5 USD supporting that asset (this is important that you understand), since for your you can collect your reward, you always have to keep a collateral of 750%, the minimum you need is 742% target collateralization radio but you always have to make sure that the collateral is at 750% ok. As you can see it is at 0 because we have not started yet, but when your collateral is below 750% you will need to destroy sUSD
Since when STAKING with SNX a currency called sUSD is created, which is a STABLECOIN that represents 1 USD
The 2 ways you can raise your collateral is to burn a little sUSD to release SNX and buy it at another price or you have to do more STAKING so that the collateral rises to 750% and you can collect your rewards
Another important thing is that they have something called SCROW which is basically a Trust, all your rewards will be given to you on Wednesdays, so you have to enter every Wednesday to collect your rewards on SNX,
(If two weeks pass and you do not collect, they are transferred to a pool and divided among the users who are STAKING), then do not forget to collect your rewards at least once every two weeks.
Those are important points, your rewards will be blocked for 12 months EYE, your money is not blocked for 12 months, only the rewards, this is so that it does not sell and so that the value increases obviously, this combines all of us at the end of the day, I emphasize, you have to charge on Wednesdays is when they pay, you have to charge at least 1 time every 2 weeks
Once you STAKING your SNX will remain in your wallet but they will be blocked so you cannot move them and you cannot sell them
To do STAKING you click on MINT you click on MAX as you can see the moment I did it I created 13.22 sUSD
Something important is that if we make a similar amount our collateral will be exactly 750% ok but what we can also do is reduce the amount as you can see in the example now I indicate 12 and the collateral increases to 827%
and good of this So you no longer have to put more SNX into your contract to reach the 750% collateral or you no longer have to do this burning mechanism that unlocks your coins and somehow re-buys them at a higher price, then you have to start learning explore links read documents
Now I will only create 12 sUSD click on MINT NOW, as I said a moment ago at that moment the transaction fee was a little high but it is regularly lower
As you can see we created 12 sUSD, now we click on finish and now if you can see the data on the screen changed now we can see how much I have to have as collateral which is 750% at that moment I have 826% in total we can observe 90.33 SNX LOCKED 82.03 SNX IN STAKED 82.03 and ESCROWED will indicate the amount of your rewards.
We can also see the 12 sUSD and there we see our debt, there we have to pay the 12 SNX to be able to free our total SNX. So leave me in the comments if you are already STAKING right now and remember to wait until Wednesday to receive rewards, something important is that you will receive rewards in 2 ways, one on SNX and the other part you will receive it on sUSD that charges a commission in the exchange of 0.30 and there it is distributed.
As you can see it is very simple you only have to be opening the page at least once every 2 weeks and verify that the collateral stays around 750 or above just click on CLAIM and ready when I was writing this, it took 1 day to collect. (remember if you do not charge in the mentioned time) you lose the reward, so do not forget it
By clicking SCROW you can see your rewards and if you want to release it is to click BURN and click BURN MAX. It is very easy to report how much money will grow, which is around 100 DAI, we will see if the value of SNX grows and we will see if they pay me well enough as I mentioned that it is 59% per year, I will keep you informed
thanks for reading have a great day 🤗
