Delegate your SNX with xToken

By cryptouf | Les cryptos pour les nuls | 20 Aug 2020


Hi Guys

Is there some SNX warriors here ???

I did an article / tutorial on how to stake your $ SNX using MintR.

More recently I had also presented the xToken protocol which allows, among other things, to delegate your $ KNC in order to participate in Kyber's DAO without having to vote and claim your rewards at all times and thus save gas costs.

In this article the 2 worlds merge. It is now possible to delegate your $ SNX using the xToken protocol.

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If you already store SNXs you are either facing weekly gas expenses to claim your rewards, or a 15% tax on your earnings if you go through a private company to handle this for you. is now complete! enjoy 100% (almost) of your rewards by not paying transaction fees every week.

Using the xToken protocol allows you to invest in $ SNX without having to:
  • Mint sUSD
  • Claim your rewards
  • Manage your collateral ratio
  •  
And that gives you:
  • Exposure to $ SNX and the generation of rewards
  • freedom of mind. You normally have to think about this connection every week to claim your rewards and add your collateral ratio.
  • Saving on gas price

 

The developers also insist that this delegation is not farming yield or you will generate profiles quickly. You have to "be long" on the synthetix project and bet on the long term.

“We also feel compelled to note that xSNX is not a yield farming strategy or a commercial vehicle. XSNX owners should believe in the Synthetix ecosystem for the long term. The fund is designed for long term value accumulation. Short-term holders may find it difficult to earn positive returns.
"

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How to do?

 


It's very simple. You must "minter" the $ xSNX.

There are two possibilities for this. Either use $ SNX or use $ ETH.
The developers warn that the price of gas can be high enough during the transaction to "mine" those $ SNX. But that's still perfectly fine compared to what you would have from the payer each week to claim and manage your collateral if you don't delegate. Remember, this is the only transaction you will have to pay. In addition to that when you want to leave the protocol of course.

The fees are 0% to “min” with $ SNX, 0.2% for “min” with ETH. And 0.2% when you want to get out of the protocol and if you want to recover $ ETH (rather than $ SNX) and 1% to claim the earned sUSD. The costs are therefore very correct. Remember how much you spent the last few weeks on gas to claim your rewards!

You can also acquire $ xSNX on the Balancer xSNX / ETH / SNX 50/25 / 25 pool, this can help you lower your transaction fees.

Then there is nothing more to do. The generated SNX $ are still blocked for 1 year and you will not be able to claim until after this period. However, it will be possible to recover your winnings along the way by selling your tokens on the balancer pool.

"However, you may be able to sell your tokens on Balancer at a price that includes the current value of your sequestered rewards - a feature currently unavailable with conventional staking."
I invite you to read the developers post to find out more. This post is a simplified version and you will find more details there.

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Les cryptos pour les nuls
Les cryptos pour les nuls

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