Synthetix

What is Synthetix (SNX)?

• Ethereum-based protocol for issuing synthetic assets ("Synths").

• The SNX token is used for collateral against issued Synths.

Tokenomics

• Total supply capped at 282,337,310 SNX.

• Inflationary emission rate, fully vested by March 2024.

As of today #{today’s date}, the price of Synthetix is ₹160.30 INR or 1.733 USD, with a 24-hour trading volume of 15254176.89 USD. The market capitalisation for Synthetix is 565256813.07USD. The circulating supply is 327769196.14 Synthetix, with the total supply also being 328193104.09 Synthetix.

Pros:

• Provides exposure to a wide range of assets without direct ownership.

• Highly decentralised with no single point of failure.

• Active community governance.

Cons:

• The complexity of the protocol may limit adoption among new users.

• Reliance on the Ethereum blockchain can lead to high gas fees during periods of congestion.

Why Should You Invest in the Coin?

• Pioneering role in DeFi, synthetic exposure to diverse assets.

• Collateralisation and governance model appealing in DeFi growth.

USP of the Coin

• Synthetix exposure to a wide range of assets, including non-blockchain.

• Decentralised, permissionless access broadening crypto space.

Problem the Coin is Solving

• Enables issuance of synthetix assets, accessing broader financial markets.

• Overcomes direct asset exposure limitations without traditional intermediaries.

Founder and Team Background

• Synthetix is founded by Kain Warwick, the team includes Justin Moses (CTO) and Clinton Ennis (Senior Architect).

• Experience in blockchain and traditional finance.

ICO Price

• ICO price of $0.47 in Private Sale, February 2018.

• Total raise of $23,420,000.

Risks Associated in Investing in the Coin

• Market volatility, regulatory changes in DeFi.

• Reliance on Ethereum network scalability, gas fees.

• Protocol complexity may affect adoption rates.

The Synthetix whitepaper outlines a decentralised protocol for issuing synthetic assets on the Ethereum blockchain. The protocol enables the creation of Synths, ERC-20 tokens that represent synthetic versions of real-world assets, including fiat currencies, commodities, and cryptocurrencies. These Synths are collateralised by the Synthetix Network Token (SNX), which users stake to mint new Synths. The whitepaper details the mechanism of collateralisation, where all Synths issued are backed by SNX tokens staked in the protocol, ensuring the stability and security of the synthetic assets. The collateralisation ratio is dynamically adjusted based on the total value of Synths in circulation and the value of the staked SNX, maintaining a stable system even in volatile market conditions. Synthetix utilises a unique peer-to-contract trading mechanism, allowing users to trade Synths directly with the smart contract without needing traditional order books, thereby reducing slippage and providing infinite liquidity. The protocol employs decentralised oracles to feed real-time price data into the system, ensuring that the Synths accurately track the value of their underlying assets. Governance of the Synthetix protocol is conducted through a decentralised autonomous organisation (DAO), where SNX holders can propose and vote on changes to the protocol, including adjustments to fees, collateralisation ratios, and the addition of new synthetic assets. This community-driven approach ensures that the protocol remains adaptable and responsive to the needs of its users. The whitepaper also discusses the economic incentives designed to encourage participation in the Synthetix ecosystem. SNX stakers earn rewards from transaction fees generated by Synth trades and inflationary rewards distributed to stakers to incentivise the minting of Synths and provision of liquidity.

In conclusion, the Synthetix whitepaper presents a comprehensive framework for a decentralised synthetic asset platform that aims to bring the breadth of global financial markets to the blockchain, enabling users to gain exposure to a wide range of assets in a secure, decentralised, and permissionless manner. The protocol’s innovative use of collateralisation, peer-to-contract trading, and decentralised governance positions Synthetix as a key player in the expanding DeFi ecosystem.