Synthetify is an upcoming decentralized protocol on Solana which aims at bringing synthetic assets into the Solana ecosystem. Solana is a highly scalable blockchain with lightning fast low fee transactions with a high throughput.
SNY is the main token of the Synthetify Protocol which is based on the SPL(Solana Program Library) standard.
What will SNY be used for?
SNY holders can stake their tokens to participate in the protocol. Stakers receive a part of the fees generated by the exchange and also get inflation rewards. SNY will also act as the collateral for all the synthetic assets created in the protocol. It will also function as a governance token allowing the community to vote on proposals.
Stakers are responsible for creation of synthetic assets on the exchange by locking their SNY in a smart contract which results in the creation of a synthetic USD token(xUSD) which is later exchanged for other assets. Stakers earn inflation rewards and fees generated. The locked SNY can be unlocked by burning synthetic assets equivalent to the debt.
Traders need to purchase synthetic assets from CEXs or the Synthetify Exchange to engage in trading activity.
Liquidators ensure that the protocol remains solvent by paying off debt of under collateralized stakers for which they receive a share of the Staker collateral.
The Synthetify Exchange allows users to trade synthetic assets in a decentralized environment governed by smart contracts. Currently each trade has a static fee of 0.3% irrespective of the size.
It is not necessary to hold SNY tokens to perform trades but the user needs to have synthetic assets.
Listing of assets will be controlled by the Synthetify Team until governance gets implemented.
More info on tokenomics will be published in a future article when the protocol gets launched.
The Solana ecosystem is quickly gathering users and volume as a new avenue of Defi is getting explored. Synthetify is definitely one of the coolest Defi projects launching on Solana which can play a key role in bringing in more liquidity and users.
Join the Synthetify community on Discord: https://discord.com/invite/EDrf437
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SOL : CSDf4BwBNStjhRT1rsyZ3Znt7S6dewGL3eHxapvJ2srm