Synthetix is a place that gives anyone an opportunity to form, obtain, give, and keep different kinds of derivatives such as local monies, stocks, commodities and virtual currencies including MKR, LINK, and BTC. Synthetix gives members a unique opportunity to own any of the assets it has.
Synthetix is also a protocol that owns synthetic assets it chose to call Synths. Users can substitute their SNX for new Synths. Synthetix has proved its importance a number of times in the DeFi space by making it easier for people to get the financial assets they knew before now and also provides different kinds of trading methods.
One can also participate in binary options as a Synthetix user. This is a way to make money by staking your asset for or against a position within a particular time frame. Synthetix has a number of options and you can find them out here.
What makes the Synthetix ecosystem strong is that it receives so many liquidities for its different assets from people who also get rewarded with some profits. To benefit from this, you should take your mouse around the LP rewards button and look for Mintr.
Synthetix, when it was known as Havven, did a fund raising campaign during the first few months of 2018 and got $30 million. The funds were raised from the sale of its SNX during an ICO and its partnership with Synapse Capital.
Synthetix does well because of the quality of those in leadership, including Kain Warwick, who with his experience in Blueshyft has gained the capacity to control the activities of other key players there. Apart from him, there are other important personalities whose efforts have made Synthetix what it is today. They include Justin Moses, the Chief Technical Officer, and Jordan Momtazi who is in charge of business development.
Reason to choose Synthetix
A large number of people now choose to invest in derivatives and some of the financial markets that were known long ago. Such people can be more active now that Synthetix has come to stay.
Synthetix makes it easy for those who would like to get some stocks from Apple or Tesla to do so without any hassles. In addition, crypto traders have many options to choose from.
In summary, Synthetix is a platform for creating synthetic assets according to Ethereum standards and getting profits in the act. Those who are already doing so have had no cause to regret their decision so far in that they readily find buyers based on the fact that virtually everyone knows about Ethereum and have no problem investing in it, especially when it relates to gold, Apple, and some of the world’s most stable local currencies.
How to do it
There are two main assets to find here. They are Synths (the assets made synthetically), and SNX (Synthetix’s native token).
Anyone interested in creating a synthetic asset should have SNX which will be deposited as collateral. The amount of SNX one deposits determines the value of Synths one can mint. The synths are easily bought by investors in every country as it gives them more investment opportunities.
The most important Synth that is created here is the sUSD stable coin which is peculiar to Synthetix. With sUSD, it is possible to get any other synth on this protocol.
One of the ways to make profit on Synthetix is by using SNX as collateral. The profits come from the fees charged on the activities that go on there such as trading. Hence, to get more money from the fees the network collects, simply mint more Synths and stake more SNX.
The amount of Synths one may mint is dependent on the value of collateral given. Before you can start minting any Synth, you must have a minimum of 750% collateralization ratio. This decision was taken in a bid to maintain the prices of Synths and so that there is always enough to stabilize changes in the network.
To make its users happier, Synthetix decided to develop some apps so that every of its services and benefits can be accessed by everyone without stress. These include the following:
The first decentralized app any Synthetix user will hear about is Mintr. With this app, creating Synths is easy so one can be a committed fellow at Synthetix. Apart from minting, Mintr creates an avenue where those who have SNX can also partake in burning the synthetic assets, make sure their collateralization ration is balanced, acquire profits during exchange, retrieve locked SNX, and others.
To use Mintr, the user should own a web 3 wallet such as Trezor and Metamask. The other thing that must be in place is a good amount of SNX.
With Synthetix Exchange, it is easy to swap the Synths that are supported. As in the case above, a web3 wallet is one of the prerequisites.
There is a fixed fee of 0.30% for any Synth exchange on the platform and this does not even include the gas fees paid to ETH. The fees are the benefits of those that staked their SNX to make sure there is liquidity for the Synths.
The token is a must-have for anyone who is interested in minting Synths. As a reward for their benevolence to the Synthetix network, they are giving some of the proceeds generated from fees during exchange. Every trade that is done for a Synth pair attracts a fee of 0.30%.
When new Synths are created, the minters lose their SNX. But they can be recovered when the same amount of Synths are burned.
Last year, Synthetix began using inflation to encourage the staking of SNX. This gave positive results including a rise in the value SNX. Of course, more people became interested in minting Synths.
According to that update, Synthetix said that SNX supply would rise from 100 million to about 260.3 million within a space of 53 months beginning from March 2019. However, it stated that there would be a shortage in supply by 1.25% weekly. At the end of the 53 months, Synthetix will start supplying at an inflation rate of 2.5% for as long as possible.
DeFi enthusiasts can turn to Synthetix for different kinds of synthetic assets, derivatives and profitable trading styles. Since many people still go for those financial assets that have been in place for several years, there is no problem with finding buyers for them if they are synthesized on the Ethereum network.
In case you would like to know more about Synthetix, its Twitter and Discord are free to join. Mintr is there for those who would want to start minting new assets right away while the Synthetix Exchange link is a must-go for those who would want to buy or sell SNX. Finally, if you are not sure of what you want to do yet but still want to know about the platform, then you can get started on the dashboard.