What is Synthetix?

SNX is a popular altcoin among investors. However, before you Trade SNX, it is vital that you understand what you are investing in. Let's find out what's SNX and how it functions.

Synthetix is developing a distributed liquidity provisioning protocol that may be used for various purposes by any other protocol. Its cheap costs and high liquidity make it a vital backend for several promising protocols on both Optimism and Ethereum.

In the Synthetix ecosystem, many user-facing protocols employ Synthetix liquidity, including Kwenta (Spot and Futures), Lyra (Options), Polynomial (Automated Options), and 1inch & Curve (Atomic Swaps). Optimism and Ethereum's mainnet are the foundations upon which Synthetix was constructed.

The Synthetix Network allows for the issuing of synthetic assets (Synths) by using SNX, ETH, and LUSD as collateral. Synths are financial instruments that mimic the performance of an underlying asset without actually needing the investor to own that asset. Synthetix liquidity is pooled to support various composable on-chain financial products.

How is Synthetix different?

Synthetix is a synthetic asset platform and decentralized exchange (DEX). Users are given access to the underlying assets via synths without holding the underlying asset themselves according to the protocol's architecture. Users can freely buy, sell, and trade synths with one another on the platform. In addition, the Synthetix Exchange has a staking pool where token holders can stake their SNX tokens in exchange for a proportional percentage of the exchange's transaction fees.

Oracles, which are part of the platform's smart contracts, are used to give prices for underlying assets. Synthetix facilitates the trading of synths between users with no hiccups caused by liquidity or slippage. Facilitators are unnecessary because of this method. SNX tokens back the freshly minted synthetic assets. This implies that anytime synths are released, SNX tokens are locked in a smart contract.

Since its release, the protocol has migrated to the Optimistic Ethereum mainnet, which can help minimize gas prices and improve oracle latency.

How many SNX tokens are there?

The total supply of SNX is capped at 212,424,133 tokens. Synthetix sold almost 60 million tokens throughout the seed and token sale rounds, raising $30 million. 20% of the 100,000,000 tokens issued during the ICO were distributed to the team and advisors, 3% was allocated for bounties and marketing rewards, 5% to partnership incentives, and 12% to the foundation.

Network security

The SNX token adheres to the ERC20 protocol used by Ethereum. The Synthetix network is protected by proof-of-stake (PoS) consensus. Staking Synthetix (SNX) allows its owners to profit from the transaction fees generated by the Synthetix network. The protocol's inflationary monetary policy, or staking rewards, is another option for SNX stakers to generate revenue.

Founders

In September 2017, Kain Warwick debuted the network under the moniker Havven (HAV). Eventually, the business changed its name to Synthetix and did so about a year later.

Kain Warwick created Synthetix and serves as a non-executive director for the blueshyft retail chain. Warwick's experience in the cryptocurrency industry predates his establishment of Synthetix. Furthermore, he established the Australian-based live auction platform Pouncer.

Synthetix's Chief Operating Officer, Jordan Momtazi is an accomplished business strategist, market analyst, and sales leader with a background in blockchain, cryptocurrencies, digital payments, and e-commerce

Chief Technology Officer Justin J. Moses was formerly the director of engineering at MongoDB and the deputy practice leader of engineering at Lab49. Along with that, he was also a co-founder of Pouncer.

Where can you buy SNX?

SNX is available on the licensed cryptocurrency exchange CryptoForce and several other national and international exchanges.

Disclaimer: Cryptocurrencies are highly volatile and subject to market, technical, and regulatory risks. Crypto trading requires one’s own diligence, and Cryptoforce will not be responsible for any losses incurred. Any information provided here should not be regarded as Cryptoforce’s technical or financial advice