Trade synthetic assets such as Cryptocurrency, Indices, Commodities, & Forex with the Synthetix exchange. Synthetix is a platform on Ethereum for the creation of Synths, which are on-chain synthetic assets that track the value of real-world assets. Its partially decentralized meaning there’s no KYC, plus its non-custodial, so you control the keys to your crypto assets. There are no order books involved and you dont need to worry about things like slippage or liquidity. Plus you can seamlessly exchange between a wide variety of synthetic assets.
What is Synthetix?
Born as stablecoin project Havven, Synthetix rebranded and expanded its scope prior to launching on mainnet in February 2019. The Synthetix platform now supports over 30 different Synths which are tokens that provide exposure to assets such as gold, Bitcoin, U.S. Dollars, with TESLA & AAPL coming soon. This can all be done by simply depositing SNX tokens into the platform.
With Synthetix you are not trading with other people and assets are bought and sold through the minting and burning of authentic tokens, which means you don’t have to worry about liquidity. Transaction fees from trades go to holders of SNX, incentivizing Synth creation and giving value to the underlying collateral (i.e., the SNX token).
For those that mint synthetic assets, they can earn fees generated by people buying the assets on the platform.
Synthetix Network (SNX) Tokens
Synthetix has a native token called SNX. This token is nrequired to create synthentic assets called Synths. SNX holders can lock in collateral such as SNX and ETH to mint Synths, which are freely tradeable ERC20 tokens. A total of 250 million SNX tokens will be minted by 2025. At the beginning of June, the price surged from $0.79 to roughly $3.32 by the end of JUly 2020.
The SNX token is also available for trading on popular exchanges such as Binance and Kyber with Coinbase announcing their potential support too.
How to Stake SNX
Staking SNX allows anyone to earn rewards by contributing collateral to the Synthetix protocol. These rewards are generated from trading fees and inflation rewards.
There are also some risks to staking SNX. When you mint Synths, you own a part of the platform’s debt pool, the total value of all Synths. This debt can go up and down regardless of the original value of your minted Synths.
To stake your SNX, you need to visit “Mintr” used for minting and managing Synths.
Then choose “Mint” to select the type of Synth you want to mint, as well as the amount of Synths you’d like to mint.
Choose to “Mint Now” and confirm the transaction with your connected wallet.
Once completed your SNX token will automatically be staked
Louise created the Every Bit Helps YouTube channel back in 2017, after finding the process of buying Bitcoin difficult. Therefore, in an aim to help others, she hopes that her tutorials will make the process of buying, selling and storing crypto a lot easier for newbies in the future.
After spending 20 years working in London in cyber security, she left the corporate life after having her second child in 2018. Louise now travels the world with her two small children trying to make the most out of life.