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Synthetix(SNX)
SNX (Synthetix) Token Price & Latest Live Chart
2023-07-10 22:25:50
Discover the latest SNX price with FameEX's SNX/AUD Price Index and Live Chart. Keep up-to-date with the current market value and 24-hour changes, as well as delve into Synthetix's price history. Start tracking SNX price today!
What is SNX (Synthetix)?
Synthetix, a groundbreaking decentralized finance (DeFi) protocol, is revolutionizing the financial landscape by providing users with on-chain exposure to a wide array of both crypto and non-crypto assets. Built on the Ethereum blockchain, Synthetix introduces a concept of highly liquid synthetic assets called synths. These synths enable users to track and gain returns on the underlying assets without needing to physically possess them. By broadening the horizons of the cryptocurrency space, Synthetix aims to create a more inclusive and robust financial market.
At its core, Synthetix functions as a derivatives liquidity protocol operating on the Ethereum network. It offers the ability to issue various synthetic assets, known as synths, representing both physical and digital assets. Synths can embody traditional fiat currencies like the US dollar, popular cryptocurrencies such as Ether or Bitcoin, as well as precious metals like gold and silver. This expansive range of synthetic assets sharing the same staking pool provides users with unparalleled flexibility and diversification within the DeFi ecosystem.
How does SNX (Synthetix) work?
The underlying mechanics of Synthetix are sophisticated yet effective. The protocol relies on two essential tokens: SNX and synths. SNX serves as collateral when creating synths, requiring users to stake their SNX tokens on the platform. This collateralization ensures the integrity and stability of the synthetic assets. By staking SNX, users contribute to the creation of collateral that backs the synths they generate. It's worth noting that the collateralization ratio stands at 600%, meaning that for 100 sUSD, one needs to deposit SNX tokens worth six times that value.
Synthetix leverages Chainlink's decentralized oracles, which provide accurate and tamper-proof price feeds for the assets it can issue. This ensures that all synthetic assets within the ecosystem are valued correctly based on real-time market data. The integration of Chainlink's oracles adds an extra layer of trust and reliability to the platform, safeguarding against potential price manipulation. For users looking to participate in the Synthetix ecosystem, staking SNX tokens is a straightforward process. Platforms like Mintr allow users to stake their SNX tokens and create synths, such as sUSD, which can be traded on decentralized exchanges. The staking process rewards users with fees generated from the protocol and allows them to participate in the governance of the ecosystem. As the ecosystem evolves and the demand for synths grows, stakers can potentially earn attractive returns.
SNX (Synthetix) market price & tokenomics
Governance plays a crucial role in Synthetix's operations. Initially governed by the Synthetix Foundation, the protocol has undergone decentralization efforts to enhance community participation. This transformation has resulted in the establishment of three distinct decentralized autonomous organizations (DAOs): The Synthetix DAO, Grants DAO, and Protocol DAO. Each DAO focuses on specific aspects of the protocol's development and governance. The Synthetix DAO supports initiatives that advance the protocol, the Grants DAO funds community proposals, and the Protocol DAO oversees smart contract development and updates. The governance process involves two key artifacts: Synthetix Improvement Proposals (SIPs) and Synthetix Configuration Change Proposals (SCCPs). SNX holders can propose improvements through SIPs and participate in decision-making through voting, providing a democratic and inclusive framework for the protocol's development. As of now, SNX (Synthetix) is ranked #71 by CoinMarketCap with market capitalization of $661,716,784 USD. The current circulating supply of SNX coins is 264,416,066.
Source: Synthetix Official Website
Why do you invest in SNX (Synthetix)?
The Synthetix ecosystem extends beyond its core protocol, as numerous projects rely on its infrastructure to power their platforms. One prominent example is Curve Finance, a platform that facilitates seamless cryptocurrency swaps. By integrating with Synthetix, Curve Finance ensures accurate pricing for different asset pairs, creating a reliable and efficient swapping mechanism for traders. Additionally, Lyra, Thales, Kwenta, ParaSwap, dHEDGE, Yearn, and Aelin are among the projects that have collaborated with or built on top of Synthetix, further expanding its reach and utility. An important milestone in Synthetix was its transition to Optimism Layer 2 Ethereum. This shift brought about significant benefits such as lower gas fees and improved scalability. By leveraging Optimism's Layer 2 solution, Synthetix can process transactions more efficiently and offer users a better experience. This scalability enhancement opens doors for further growth and the introduction of new features.
Synthetix stands out as a trailblazing DeFi protocol, pushing the boundaries of what's possible within the decentralized financial ecosystem. By enabling on-chain exposure to a wide range of assets through synthetic derivatives, Synthetix offers users unparalleled access and flexibility. The protocol's governance structure, integration with Chainlink's oracles, and collaborative partnerships contribute to its continued growth and innovation. As the DeFi space continues to mature, Synthetix and its native token, SNX, are positioned to play a significant role in shaping the future of decentralized finance.
Is SNX (Synthetix) a good Investment?
When considering the investment potential of SNX, it is essential to assess the broader context of the DeFi market. As one of the pioneering DeFi projects, Synthetix has established itself as a prominent decentralized derivatives platform. Its growing ecosystem and integrations with various projects and platforms have strengthened its value proposition. As synths gain traction and establish a presence on different decentralized exchanges, the demand for SNX is likely to increase. However, it's crucial to acknowledge the inherent volatility and unpredictability of the cryptocurrency market. As with any investment, careful research and risk assessment are vital.
