Review on Synthetix Network Token by Yenkelys Barcenas
Synthetix Network Token "SNX". A Projects To Be Attentive.
It is defined as an innovative DeFi project, which allows the creation of synthetic assets in the form of ERC-20 tokens to boost the value and liquidity of the underlying assets and with which daily purchases of cryptocurrencies can be made. It is a decentralized network that uses a double token system to reduce price volatility, backed by smart contracts, which does not need any counterparty or third party in the exchange process, so that anyone can buy and sell at any time, taking advantage of the infinite liquidity of Synthetix.
The native SNX token of the Synthetix platform is a digital asset with a good price and a good market capitalization that is in the range of 43 in the global cryptocurrency rating with an average daily trading volume of $ 31.3M. This token allows users to mint, hold, and trade a wide range of derivatives, including fiat currencies, commodities, and stocks, as well as cryptocurrencies (BTC, MKR, and LINK). Once the user purchases the SNX tokens, they are stored in the compatible wallets, once they have been blocked they are used to create synthesizers to track the price of some other real world asset.
It is a project that offers earnings to its users who depend on their participation, by buying SNX, issuing Synth and assuming the debt behind those Synths, the user becomes a participant in the Synthetix ecosystem and can earn and collect participation rewards, and those are attributes very attractive to the people who take the risks of these operations.
Pros
- The SNX token is of the ERC-20 type and therefore can be stored in multiple wallets.
- Transactions take place immediately at the true peer-to-peer price.
- It offers participation rewards to users.
- Access and use of the exchange is easily achieved.
- Users can quickly and easily convert between different synthesizers and SNX.
Cons
- In recent days it is showing a downward trend in its price.
- Synthetic assets are not physical stocks or cryptocurrencies as such, but assets that emulate them.
- The price of each synthesizer is determined by oracles.
- The whole process can be difficult for new users.
