Review on Synthetix Exchange by Pedro O. Alvino M.
Synthetic asset trading based on the Ethereum network
A synthetic asset trading platform under the Ethereum network, it is specially designed to solve liquidity and slippage problems generated by decentralized exchanges, since it does not require an order book but rather the issuance of synthetic assets through blocking of SNX tokens for a contract.
With several options to trade either in traditional currency exchange or binary options that is currently in beta phase, it provides a variety of advantages to the operator, since it not only allows trading with synthetic cryptocurrencies but also with raw materials, indices and forex However, this method requires a synthesizer through the SNX token blocking that partially provides benefits to the users who have blocked said tokens, in addition, said prices of synthetic crypto assets are based on a network of oracles that drive the price chain.
Despite the little inclusion of synthetic assets, it is expected that more and more diverse trading models will be integrated, but given the platform that is in the exchange, it is possible that it presents delays or high costs of the network, since it is under the Ethereum network that presents a series of congestion and high network fees, in addition to the exchange process that despite not needing an order book, is not ideal for users with little experience, trade on the platform given the complexity of exchange between synthetic actives.
Pros
- It has a market for synthetic currencies and binary options in cryptocurrencies
- You do not need to register with the exchange to trade.
- Exchange compatible with hardware and extension wallets.
- It has a loan system in sETH and sUSD
- All transactions and asset trading on the exchange are executed through smart contracts.
Cons
- Being based on the Ethereum chain, the processing of transactions can take time and have a high cost.
- Very little information about the leaders and developers of Synthetix.
- Very few languages supported.
- Not ideal for inexperienced operators.
