Synthetix

What is Synthetix (SNX)?

The Synthetix Network, which went by the name Havven previously, is a blockchain and software firm that concentrates on producing on-chain synthetic assets that can be pegged to metals, indices, and even fiat currencies.

Moreover, Synthetix is also developing Mintr, which is a decentralized application (dApp) for SNX to build synthetic assets known as Synths. And then there is Swappr, which is a DEX (decentralized exchange) for purchasing Synthetix’s stablecoins using Ether.

Definition and Functionality

It is a platform for decentralized synthetic assets that offers on-chain exposure to indices, stocks, commodities, and currencies, i.e., real-world assets.

Synths (synthetic assets) are backed by SNX tokens locked within smart contracts as collateral.

Synths monitor various assets’ prices, enabling peer-to-contract (P2C) trade for cryptocurrency-native and unbanked users on its exchange, without limitations involving liquidity.

Creation and Evolution of Synthetix

Synthetix, when it initially came about, sought to make cryptocurrencies that could track how cash, such as the Euro or the U.S. dollar, was performing on several blockchains, including EOS and Ethereum. After it rebranded, its goals evolved to integrate synthetic assets for other cryptocurrencies and commodities.

Key Founders and Developers

Kain Warwick is the individual behind the founding of Synthetix and has extensive experience within the blockchain sphere. The two other members integral to its foundation are Clinton Ennis and Justin Moses, both of whom, like Warwick, have a lot of experience in their respective fields.

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Synthetix Protocol

Here, we will briefly discuss its oracle mechanism and how it uses that to facilitate the trading that takes place throughout its protocol.

Oracle Mechanism

Oracles bridge the gap between the real world and the blockchain sphere, which is why synths utilize decentralized price oracles so that the data of those underlying assets can be accessed. Through this, you can trade and own synths in the same manner that those tracked assets can be traded.

Exchange and Trading

So, due to those decentralized price oracles, you can essentially trade with assets that you would not normally have access to within the cryptocurrency landscape, like gold, silver, and stocks. Consequently, you can do that on the decentralized exchanges that are built on top of Synthetix.

Synthetix Platform

Here, we will be going a bit into its minting and burning processes, along with Kwenta and Synths.

Synths and Kwenta

Synths here refer to the blockchain equivalent of traditional synthetic assets, which serve as trackers of the prices of assets within the real world, like indexes, commodities, or gold. This means that you can trade in these commodities and indexes without actually owning the underlying assets. And Kwenta just so happens to be Synthetix’s own decentralized exchange where you can do exactly that.

Minting and Burning Process

Minting refers to the procedure by which sUSD tokens or other synths can be produced by locking or staking SNX tokens as collateral, whereas burning is the opposite. With burning, you are effectively destroying the synths, but with it, you can claim your rewards for providing liquidity.

Benefits of Using Synthetix

Here, we will be delving briefly into some of the advantages that Synthetix brings to the table, namely financial innovation and accessibility.

Financial Innovation

Synthetix’s services are financially innovative within the cryptocurrency sphere, as they bring real-world assets into the world of cryptocurrency, serving as a bridge of sorts where you can trade in commodities and indexes without actually owning them.

Accessibility and Inclusion

Due to Synthetix bringing traditional equities into the world of DeFi, anyone with a mobile phone and an internet connection can trade with these equities or real-world assets, thereby increasing financial inclusion and accessibility.

Risks and Challenges

Within this section, we will be discussing a few of its drawbacks that warrant mentioning, particularly those pertaining to security and regulation.

Security Concerns

While its bug bounty programs have assisted it greatly in identifying bugs and swiftly dealing with them, there is a level of interdependence that can be overlooked here. For instance, since the protocol is based entirely on Ethereum, any devastating bug within Ethereum may have downstream effects on Synthetix. However, bugs aren’t the only thing; since the SNX token is traded on many exchanges, any substantial hacks or attacks on those exchanges may affect it too.

Regulatory Hurdles

Since it is a bridge that connects the traditional financial world to cryptocurrency, it is likely to be impacted by regulation. So, when regulatory issues face it, maintaining compliance will become obligatory, and that will raise barriers for traders as new procedures will have to be dealt with and they may have to deal with a lack of certain regulatory protection schemes.

SNX Token (SNX)

Now, we will be directing our focus to its native token, SNX, and going briefly into its utility and tokenomics.

Purpose and Usage

The SNX token’s utility is apparent within Synthetix, as it is needed in the generation of new synths, the provision of which is the entire purpose of the protocol.

Staking and Debt

By staking, users are essentially collateralizing the network, and they are rewarded for doing so, either through trading fees or inflationary rewards that include SNX tokens newly minted and held within escrow for about a year.

Also, only through staking can new synths be minted, and when they are, a “debt” is incurred. This can increase or decrease depending on exchange rates and synths’ supplies in the network. Furthermore, this “debt” can be burned for rewards to be claimed.

Tokenomics

Moving onto tokenomics, the SNX token is currently worth around $2 with a market capitalization of nearly $643 million and a fully diluted valuation of over $644 million.

Its daily trading volume, on the other hand, is approximately $15 million, and its TVL (total value locked) is over $376 million. As for its maximum and total supply, that would be over 324.4 million tokens, with its circulating supply being quite close to that number, with more than 323 million tokens.

How to Buy SNX Token on Binance?

If what we have explored about the protocol so far has gotten you interested in purchasing its native token, then let us see how that can be done on the world’s largest exchange, Binance.

Creating a Binance Account

Creating an account here is straightforward, and if you haven’t done so already, you can do so by clicking the link below and utilizing the Coin Labs referral code. Once on the registration page, fill in whatever’s asked of you, like your email address, password, etc.

Verification process

Once you have created your account, verifying it comes next so that you can get rid of any limits on your trading. To do that, head over to its verification page and add some personal data relating to your identity. Back this data up, then, by sharing some document photos.

Setting up Two-Factor Authentication (2FA)

Following KYC, amplifying your account’s security comes next with the setting up of 2FA. Go to Binance’s security page and choose the option relevant to you here. After that, follow the instructions that Binance outlines to set up 2FA. These will, for instance, likely involve downloading an authenticator application like Google’s or Binance’s, and more.

Depositing Funds

To buy the SNX token on Binance, you will need to deposit some funds. So, pay its deposit page a visit and select your preferred token, along with the network for it. Once that deposit address is generated, paste it into whatever wallet or exchange you wish to use to transfer the funds.

Purchasing Process of SNX Token

Once your deposit has been completed, you can use the various options provided on Binance to buy the SNX token, including simply converting it, which is probably the easiest, or placing orders on its spot or futures trading pages.

Storing SNX Tokens

Now that those tokens have finally been bought, storing them in secure cryptocurrency wallets comes next. So, to store them within your wallet, go to Binance’s withdrawal page, choose the SNX token, the network, and your wallet’s address, and confirm the transaction.

Future of Synthetix

What does the future hold for the Synthetix protocol? Let’s look at that for ourselves below.

Upcoming Developments

The most significant upcoming development for Synthetix would be the release of V3, which has entered its alpha stage and has yet to go live.

The third version of the protocol would include a ton of new features, the most significant of which would be permissionless markets, multi-collateral staking, and some cross-chain updates.

Community and Ecosystem Growth

Furthermore, these new V3 features will likely be followed by new integrations and partnerships, which may bring the additional benefit of growing both its community and ecosystem in the process, which has already come a long way despite the niche it currently operates in.

Conclusion

Synthetix is among the leading DeFi protocols when it comes to synthetic assets, offering specialized trading strategies to its users and more. When considering how large traditional financial markets currently are, due to Synthetix serving as a bridge between real-world assets and the blockchain, there is the potential for the generation of an enormous tokenized market of virtualized real-world assets within the blockchain sector.

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Therefore, we are not responsible for the investment decision in Synthetix and the resulting loss.

Synthetix Basics

Here are some factors that investors should consider before investing in Synthetix.

Cryptocurrency Features	Synthetix (SNX)
Publisher or Developers	Kain Warwick
Headquarters (Registration Number)	Australia
Symbol	SNX
Platform	Ethereum
Published Date (CMC Registration)	2024-11-01
Max Supply	No limit

Reliability Score of Synthetix in 2024

These are indexes mesuring the investment reliability of Synthetix conducted by Coin-Labs.com.

Investment Reliability Rating Items	Scores and Current Status
Company Activation Rate	/ 10.0 CAR
Communication Rate	/ 10.0 CR
Technology Transparency Rate	/ 10.0 TTR
Development Participation Rate	/ 10.0 DPR
Listing Status on the World's Top 10 Exchanges	Listed on 10 Exchanges
Number of Available Pairs Worldwide	637 Pairs
Market Cap of the Cryptocurrency	945,519,834 USD (Rank #66)

The table above shows the result of investment suitability evaluation for Synthetix.
Check out how we evaluate cryptocurrencies on the crypto rating description page.

Synthetix Price

Here are the price and recent trading volume of Synthetix. (Data of 2024-11-02 00:35:00)

Price Items	Price and Trading Volume of Synthetix
Synthetix Price	1.400 USD
Price Change 24h	-1.01%
Price Change 7d	-6.86%
Trading Volume 24h	18,409,101 USD
Trading Volume Change 24h	-11.96%

Cryptocurrency Metadata

You can check the development status and social media information of Synthetix through the links in the table below.

Metadata Source	URL
🌎 Official Website	https://www.synthetix.io/
📖 White Paper	https://docs.synthetix.io/
🛰️ Source Code (GitHub)
🐦 Twitter	https://twitter.com/synthetix_io
🤖 Reddit	https://reddit.com/r/synthetix_io
🎺 Message Board	https://research.synthetix.io/

Where to Buy Synthetix

Here are the top ten world crypto exchanges where traders can buy Synthetix in 2024.

Top10 Exchanges	Listed Status	Page URL
Binance	Listed	https://www.binance.com/en/trade/SNX_BTC
Coinbase	Listed	https://pro.coinbase.com/trade/SNX-USD
Kraken	Listed	https://pro.kraken.com/app/trade/snx-usd
KuCoin	Listed	https://www.kucoin.com/trade/SNX-USDT
Bitfinex	Listed	https://trading.bitfinex.com/t/SNX:USD?type=exchange
OKX	Listed	https://www.okx.com/trade-spot/snx-usdt
Huobi	Listed	https://www.huobi.com/en-us/trade/snx_usdt?type=spot
Bitstamp	Listed	https://www.bitstamp.net/markets/snx/usd/
Bybit	Listed	https://www.bybit.com/trade/usdt/SNXUSDT
Gate.io	Listed	https://www.gate.io/trade/SNX_USDT

Frequently Asked Questions