Review on Synthetix Network Token by Merve Duru
Synthetix income about
Synthetix is a decentralized asset issuance protocol for synthetic assets built on top of the Ethereum (ETH) blockchain.
Synthetic assets refer to digital tokens that derive their value from the price of an underlying asset. These can be currencies, commodities, cryptoassets or a crypto index in the current version of the platform.
Snthetix is a decentralized asset issuance protocol for synthetic assets built on top of the Ethereum (ETH) blockchain.
Synthetic assets refer to digital tokens that derive their value from the price of an underlying asset. These can be currencies, commodities, cryptoassets or a crypto index in the current version of the platform.
The pooled collateral model seen in Synthetix allows users to switch between Synths by interfacing directly with the smart contract and eliminating the need for a counterparty. This has been a significant challenge for decentralized exchanges (DEXes) within the DeFi space.
Fortunately, this model solves the liquidity and slippage issues seen on DEXes by leveraging peer-to-contract (P2C) trading and eliminating the need for an order book.
SNX holders are incentivized to stake their tokens in exchange for the fees they receive per trade. The fee typically ranges between 10-100 bps and is always displayed during any trade on Synthetix.Exchange.
Additionally, Synthetix has an inflationary monetary policy from which collateral providers are entitled to receive a portion of the newly minted SNX. This is another advantage for SNX stakers as they receive a portion of new SNX with every minting.
Pros
- popular
- low transaction cost
Cons
- processing speed
