Synthetix is a decentralized finance (DeFi) platform and a blockchain-based project that allows on-chain exposure to a broad array of crypto and non-crypto assets.
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The protocol is built on the Ethereum (ETH) blockchain and allows users exposure to highly liquid synthetic assets, which are also known as synths. Synths monitor and offer gains on the underlying securities without needing one to personally possess the item.
The platform aspires to widen the bitcoin ecosystem by incorporating non-blockchain assets, allowing access to a more comprehensive financial market.
|Technologies||Oracles, Synthetix Exchange, PoS|
|Market Capitalization||$622.3 Million+|
|Consensus Mechanism||Proof of Stake|
|Circulating Supply of Coins||114,841,533 SNX|
|Maximum Coin Supply||212,424,133 SNX|
|Is Synthetix a Stablecoin?||No|
|Does Synthetix have a burn rate?||Yes|
|Does Synthetix have a Whitepaper?||Yes, Synthetix has a light paper that can be viewed here|
Evolution and Development of Synthetix
Synthetix was founded by Kain Warwick as Havven, a system that garnered around $30 million in 2018 by selling 60 million HAV tokens.
Havven's purpose was to build cryptocurrencies that performed similarly to fiat currencies such as the US dollar or euro across a variety of blockchains, including Ethereum and EOS.
Havven changed its name to Synthetix at the end of 2018, extending its mission to encompass the production of synthetic securities for cryptocurrencies and commodities. Synthetix generated $3.9 million in 2019 via the sale of SNX tokens to Framework Ventures.
Synthetix was formerly administered by a non-profit foundation, but that organization was dissolved in June 2020 and replaced with three decentralized autonomous organizations, or DAOs.
These DAOs are the methods by which holders of the SNX coin may now vote on protocol modifications and decide on the cryptocurrency's destiny.
What makes Synthetix unique?
Users may trade several crypto assets, equities, currency, precious metals, and other assets using ERC20 tokens.
Synthetic assets, or “Synths,” replicate an asset's price in the “real world” and place it on the Ethereum blockchain, granting the Synth all the features of an ERC20 token. Synthetix operates on a multi-token architecture that is built on collateral, staking, inflation, and fee structure.
The system makes use of two distinct sorts of tokens: the central Synthetix Network Token (SNX) and synthetic assets, or Synths. The concept is identical to that of MakerDAO, in which ETH is locked away to produce DAI.
SNX is locked in Synthetix to make sUSD (synthetic USD). The sUSD serves as the debt instrument, while the SNX serves as the collateral. The primary distinction between Synthetix and MakerDAO is that SNX may be used as collateral for the creation of any synthetic asset, not simply sUSD.
One of the system's primary needs is the capacity to get reliable information from the “outside world,” such as the price of the Japanese Yen – and, ultimately, the price of stocks such as Tesla.
Synthetix historically obtained this information through centralized price streams or oracles that were susceptible to manipulation and abuse. They've now teamed with ChainLink and their decentralized oracle technology to dependably provide data to the blockchain without relying on a central authority.
Possessing a synthesizer is not synonymous with possessing an asset. For instance, a synthetic MKR token is priced similarly to a “genuine” MKR token but without the voting rights associated with an actual MKR token holder.
This approach enables users to wager on the price of an item without owning it.
What are the main uses for Synthetix?
The Synthetix system is designed for trading Synths. Synth holders can execute a long position (buy) any given asset when they speculate on its price increase. Alternatively, they might short (sell) an asset where they speculate on its depreciation.
SNX holders can also use the token to develop new synths quality for incentives and use it as an investment vessel to grow their wealth. This might explain why over 85% of the overall SNX supply is now protocol locked.
Additionally, when a user locks SNX, they become eligible to collect fees associated with any synth exchanged on the site. Fees are normally 0.3% of the value of the transaction.
Synthetix employs over-collateralization, which means that each synthetic asset is backed by a larger sum of money than it represents.
Users generate synthetic assets by staking security (SNX) and issuing new synthetic assets against it. Therefore, each Synth is simply a loan secured by the collateral deposited.
Each debt position must maintain a certain level of collateralization. Governance establishes this ratio.
Its objective is to guarantee that Synths are adequately collateralized and that the system does not have a shortfall during outlier occurrences such as a large market collapse.
What is the future potential for Synthetix?
SNX is an exciting new coin that drives a highly customizable platform. Minting synths is an excellent method to make safe bets on the value of both physical and digital assets. Users and investors alike can benefit without holding any of the underlying assets.
Given that Synthetix is a member of a growing ecosystem, investing in SNX seems to be a smart option.
Price analysis on Synthetix
Synthetix was initially launched in 2018, and its price analysis over the past four years are as follows:
|2018||2019||2020||2021 to date|
|SNX Price High||$0.768||$1.49||$8.03||$27.07|
|SNX Price Low||$0.038||$0.045||$0.42||$5.95|
Price prediction on Synthetix
According to expert projections, a long-term rise is anticipated; the 2026 price forecast is $176.685. With a five-year investment, revenue is predicted to increase by around +872.77%.
Synthetix's price might move between $29.50 and $36.62 in one year, according to future price estimates.
Which wallets are the best option for storing Synthetix?
The best options to send, store, and receive SNX is by using any of the following digital wallets.
- SIB Coin Wallet
- Coinbase Wallet
1. Bitpanda: Cryptocurrency wallets, such as BitPanda, allows users to keep their funds securely and prevent them from being exposed on an exchange. Numerous of these digital wallets support a variety of various currencies or are dedicated to a single one.
2. SIB Coin Wallet: The official SIB Coin wallet for Android offers secure, anonymous, and fast interaction with the SIB platform and currency on mobile devices.
3. Coinbase Wallet: The Coinbase wallet is well-known for being one of the most secure digital currency wallets available. It's simple to use, well-designed and will safeguard your monies with several protection mechanisms.
4. AlphaWallet: AlphaWallet is the first fully open-source self-custodial wallet. AlphaWallet enables users to engage with and utilize the functionality of their tokens without requiring that users navigate different DApps, connect to their desktop, or do any other needless steps.
AlphaWallet is the first wallet that provides users with complete control over their tokens.
Where can you buy Synthetix?
SNX tokens can be bought from the following exchanges.
- Coinbase Pro
- Uniswap (V2)
1. Binance: Binance has been in operation for years, and since its inception now, it has grown to become the largest, leading crypto exchange currently in operation.
Based in Hong Kong, Binance has a massive global customer base of over 15 million investors, traders, and crypto enthusiasts that use its services and powerful trading platforms to participate in the cryptocurrency market.
|The instant and non-instant transaction fees are competitive and low||There are some issues with account verification|
|There is a massive coin selection offered||The corporate structure is questionable|
|There are several additional services offered|
|Leading crypto exchange with a high trust score|
2. OKEx: OKEx is an advanced crypto exchange trading platform that offers several products and financial services. OKEx offers a wide range of crypto assets that can be traded using advanced reading tools and powerful trading software.
|The exchange offers fiat currency support||The fee structure is complex|
|There is a decent selection of educational resources||There are several regions excluded from service|
|There is a broad selection of trading opportunities|
|The platform offers high staking APY’s|
|There are hundreds of trading pairs offered|
|Tech support is prompt and very helpful|
3. Coinbase Pro: Coinbase is the owner of Coinbase Pro, offering it as an extension of its successful, innovative exchange, catering specifically for professional traders.
Coinbase Pro offers a range of digital assets and some of the most advanced trading features such as charting tools, technical analysis, and more.
|The interface is easy to navigate and user-friendly||Support can be slow to respond|
|The platform is known for its robust security||There are only two indicators and overlays that can be applied to charts|
|When there is high volume trading the trading costs are reduced||There are higher fees charged than competitor platforms|
|There are several advanced trading options and features|
4. Uniswap (V2): Uniswap is a prominent cryptocurrency project that takes a unique approach by enabling users to conduct transactions directly with one another. This avoids censorship and is crucial to decentralization since nothing prohibits a user from completing a transaction.
|Uniswap offers reduced trading fees for participants who provide liquidity||When users remove their liquidity they are exempted from incentives|
|There is no KYC process||Only supports ERC-20 tokens|
|There is full transparency, and the code is open source|
|There is a decent selection of ERC-20 tokens that can be exchanged|
|There are several trading opportunities offered|
|There is instant token listing on all major exchanges|
Does Synthetix use coin burns?
Yes, Synthetix mints SUSD when liquidity is too high and burn tokens when it is too low. When users stake SNX, and they mint SUSD, the users take on debt that reflects the proportional amount of sUSD that must be burnt to release SNX.
You can buy Synthetix safely from these cryptocurrency platforms.
What is Synthetix’s largest Competitor?
Mirror Protocol is the largest competitor of Synthetix.
Mirror Protocol is a decentralized finance (DeFi) technology that allows users to create synthetic assets, which are cryptocurrency tokens that mirror the price of physical commodities such as stocks.
Synthetic tokens allow investors to participate in the price of the real-world assets they represent without really owning those assets. Because of this, traders who cannot trade certain underlying assets because of territorial restrictions or a lack of funds can benefit from price changes.
Users can also participate by exchanging synthetic assets or stablecoins on automated market makers (AMMs) such as Terraswap or Uniswap. The Mirror Protocol was launched on the blockchain of terra. However, its assets (mAssets) can be accessed across bridges between Terra, Ethereum and Binance Smart chain.
Mirror Protocol is regulated by the holders of its native governance token, Mirror token (MIR).
What is the Staking Process involved with Synthetix?
Synthetix's recent success may be credited in large part to its novel token reward concept. In exchange for charges from the Synthetix exchange and profits from the system's inflationary monetary policy, SNX holders invest SNX.
To build a new Synth, a minimum of 750% of the Synth's worth must be staked in SNX. The more SNX that is staked and locked as collateral, the fewer tokens are available on the market, increasing the token's value.
What can Synthetix smart contracts do?
The Synthetix contract connects with synths to regulate their supply, as well as with the fee pool to remit payments associated with synth swaps.
To appropriately convert between synthesizers and to comprehend the amount of debt created by token minting, the Synthetix contract queries the oracle for current token pricing.
In addition, this contract talks with the inflationary supply complex to ensure that the right number of SNX is minted and that the new tokens are distributed correctly.
Is Synthetix a Good Investment?
Yes, Synthetix is a good investment.
SNX seems to be a fantastic long-term investment based on the present situation of DeFi. The site pioneered synthetic trading options, and with no strong competition, it is poised for rapid growth.
Another sign of the token's strength is the extensive network of sites that support its synthesizers. As synthesizers continue to develop a foothold on multiple DEXs, the SNX token's value will continue to rise.
Despite the unpredictability of the crypto industry, SNX is expected to become an excellent long-term investment.
What is the supply and distribution of Synthetix?
SNX has a maximum supply of 212,424,133 coins, of which 114,841,533 coins are currently in circulation. Synthetix raised $30 million throughout the seed financing and token sale rounds, selling more than 60 million tokens.
The team and advisors received 20% of the total 100,000,000 coins produced during the ICO, while the foundation received 3% for bounties and marketing incentives, 5% for partnership incentives, and 12% for the foundation.
Is Synthetix a viable Alternative Coin?
Yes, Synthetix is a good alternative coin according to:
- Security – The platform employs some of the most innovative and robust security measures.
- Technology – Synthetix uses some of the most robust technology, including Oracles, Synthetix Exchange, PoS, and more.
- Price Stability – The price of Synthetix is not as volatile as many other alternative coins.
- Potential Investment – Synthetix has a lot of potential investment and future uses in DeFi as it becomes more widespread.
What are the differences between Synthetix and Bitcoin?
People can use Bitcoin to transmit money over the internet. As an alternative to conventional payment methods, the digital currency was designed to operate independently of a central authority while yet functioning as a unit of account.
Users can speculate on crypto assets, equities, fiat currencies, metals, and other assets using ERC20 tokens. Synthetic assets, or “Synths,” replicate an asset's price in the “real world” and place it on the Ethereum blockchain, granting the Synth all the features of an ERC20 token.
|Price change 20/21||+400%||-50%|
|Market Cap||$800 Billion+||$622.3 Million+|
|Past Hacks||None||Synthetix oracle hack 2019|
|Altcoin Rank||#1 – Original Crypto||#120|
What are the differences between Synthetix and Ethereum?
Ethereum is a popular platform where developers can freely develop smart contracts and DApps using the Solidity programming language. Synthetix is a piece of software that enables users to create new crypto assets that resemble both real-world and digital assets.
|Price change 20/21||+880%||-50%|
|Market Cap||$460 Billion+||$622.3 Million+|
|Past Hacks||None||Synthetix oracle hack 2019|
What are the differences between Synthetix and Dogecoin?
Dogecoin is a digital currency that is a peer-to-peer medium of exchange that makes internet money transfers simple. The Synthetix Network Token (SNX) is an Ethereum-based token. SNX supports Synthetix network and platform, which is a decentralized system where synthetic assets can be minted.
These assets are created when using Mintr, which is a tool that can communicate with Synthetix’s proprietary contracts, allowing users to stake SNX as collateral to mint synths. Currently, the protocol supports artificial fiat currencies, cryptocurrencies, and commodities.
|Price change 20/21||+7,300%||-50%|
|Market Cap||$22 Billion+||$622.3 Million+|
|Past Hacks||None||Synthetix oracle hack 2019|
What are the differences between Synthetix and NEO?
Neo is an open-source, community-driven platform that leverages the inherent benefits of blockchain technology to create the future's most optimal digital environment.
Synthetix is an Ethereum-based technology that facilitates the issuance of synthetic assets. The platform expands the crypto ecosystem's exposure to non-blockchain assets, hence maturing the financial industry.
|Price change 20/21||+160%||-50%|
|Market Cap||$1.70 Billion+||$622.3 Million+|
|Past Hacks||None||Synthetix oracle hack 2019|
What are the differences between Synthetix and NFTs?
Nonfungible tokens (NFTs) are digital assets that each have a unique value, with no two NFTs holding the same characteristics or value as another. Synthetix, on the other hand, is fungible, which means that one SNX has the same value and characteristics as another SNX.
What are the differences between Synthetix and Solana?
Solana is a blockchain that is fast, safe, and immune to censorship, and it provides the open infrastructure that is essential for worldwide adoption. Synths monitor the values of the assets they represent using decentralized oracles.
These oracles are price discovery protocols and smart contracts that are executed without the influence of third parties or intermediaries. This enables you to keep and trade Synths as if you truly owned the underlying assets.
|Price change 20/21||+9,300%||-50%|
|Market Cap||$54 Billion+||$622.3 Million+|
|Past Hacks||None||Synthetix oracle hack 2019|
What are the differences between Synthetix and VeChain?
VeChain is an enterprise blockchain technology that attempts to deliver a consolidated perspective of a business by decoupling data silos.
Additionally, VeChain aspires to be a leading platform for initial coin offers (ICOs) and interactions between Internet of Things (IoT)-connected devices. Synthetix is a piece of software that enables users to create new crypto assets that resemble both real-world and digital assets.
SNX stays staked and non-transferable until the required quantity of Mintr is burnt. Synths may be used for several different objectives, including long-term investment, trading, and remittance.
|Price change 20/21||+370%||-50%|
|Market Cap||$5 Billion+||$622.3 Million+|
|Past Hacks||Yes, 2019||Synthetix oracle hack 2019|
What is a stablecoin?
A stablecoin is a cryptocurrency whose supply is controlled by an algorithm or whose price is fixed to a commodity or currency. Stablecoins are secured by fiat money or precious metals. So, their values are stable.
The steady assets keep these coins' pricing constant. Some stablecoins employ a computer programme to maintain their value. Stablecoins, like gold, offer traders a haven that can limit their exposure to crypto assets without leaving the crypto ecosystem.
The goal is for stablecoins to be extensively utilized as everyday money in the future.
Is Synthetix a stablecoin?
No, SNX is not a stablecoin. However, Synthetix USD, formerly known as nUSD on the Havven protocol, is a dollar-pegged stablecoin released as part of the Synthetix Network's physical asset digitization.