Introduction to Synthethix (SNX)

Synthetix is a DeFi protocol that allows on-chain access to a broad range of crypto and non-crypto assets. The protocol is built on the Ethereum blockchain and provides users with access to highly liquid synthetic assets (synths) It enables users to trade, stake, and loan a variety of cryptos, stocks, and commodities. They do this by producing synthetic assets that are linked to the price of real-world items.

Synthetix intends to diversify the bitcoin market by adding non-blockchain assets. The objective is for traders to have exposure to assets that do not exist on-chain. Some options mirror the opposite of the underlying asset, providing traders with a simple method to obtain short exposure, hedge current holdings, and take yield farming positions. It also enables the construction of indexes such as the DeFi index, which monitors the price of a basket of DeFi assets.

Learn more about how you can start investing in Synthetix here.

It will be a platform for non-crypto market assets such as gold, silver, and oil, as well as USD, EUR, Amazon, Netflix, and Tesla. Inverse synthetic assets on Synthetix are synthetic coins that reflect a short position on the asset. This capability might be useful for traders who want to continue benefitting from price declines during bad markets.

Brief History

Synthetix was founded by Kain Warwick. He introduced the network under the moniker Havven in September 2017. (HAV) After about a year, the firm relaunched as Synthetix and reverted to its original name, Havven. Warwick also established Pouncer, an Australian-only live auction service. He serves on the board of directors of the blueshyft retail network as a non-executive director.

The project’s CEO, Peter McKean, has over two decades of expertise in software development. He formerly worked at ICL Fujitsu as a programmer. Synthetix’s COO Jordan Momtazi is a business strategist, market analyst, and commercial leader with a background in blockchain, cryptocurrencies, digital payments, and e-commerce platforms. The CTO, Justin J. Moses, formerly worked as the deputy practice leader of engineering at Lab49 and the director of engineering at MongoDB. He was also a co-founder of Pouncer.

Synthetix Network Token (SNX)

Synthetix utilises over-collateralisation, which means that each synthetic asset is collateralised for more value than it represents. Individuals establish synthetic assets by staking collateral (SNX) and minting a synthetic asset against it. In other words, each Synth is effectively a loan secured by the posted collateral. Stakers must actively maintain this ratio by minting and burning Synths (debt) or adding more collateral to keep earning staking incentives.

Recent SNX Prices

SNX has had a rollercoaster journey over the last year. From the start of November 2020 to the end of November 2020, it increased by an astounding 1,000 per cent in just four months, from $2.50 to $28.90 per coin. Over the last month, it has returned to its present level of approximately $12.50. This strong trend is an optimistic indicator that the asset will hold above $5.60, but altcoins like SNX rely on Bitcoin’s bullish rise to sustain value.

SNX has reached a huge milestone, as it now has over $1.3 billion in assets stored on its platform. To ensure that the protocol is constantly over collateralised, the pools earn a return on transactions. These pools enable additional synthetic assets to be housed on the platform, therefore expanding its market.

Bottom Line

Synthetix is currently in the spotlight for having bullish market prices. This may lead to some investors jumping on the trend. It’s to be noted that it’s necessary to further research before investing any amount in maintaining peace of mind while investing. The crypto market is volatile enough as it is so it’s advised that necessary precautions be made before making any major decisions. Keep in mind to avoid FOMO, do research, and only invest what you can afford to lose.

TIME BUSINESS NEWS

TBN Editor

Time Business News Editor Team