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📺 Previous Synthetix Vid 👉 https://www.youtube.com/watch?v=5vVb02obDDo
📺 Yield Farming Vid 👉 https://www.youtube.com/watch?v=T9xoXwrt-Sw
– TIMESTAMPS –
1:55 What is Synthetix?
5:45 Main Features of Synthetix
7:27 SNX Token Overview
9:03 SNX Use Cases
11:48 SNX Price & DeFi Craze
13:47 SNX Yield Farming
16:00 The Regulatory Question
⛓️ 🔗 Useful Links 🔗 ⛓️
► Synthetix Website: https://synthetix.io/
► Synthetix Exchange: https://synthetix.exchange/
► Mintr dApp: https://mintr.synthetix.io/
► Synthetix Whitepaper: https://docs.synthetix.io/litepaper/
► Weiss Article:
📝 What is Synthetix? 📝
It’s a decentralised synthetic asset issuance protocol that was built on the Ethereum protocol. This means that users are able to mint synthetic representations of real world assets as tokens which track the value of said asset 1 for 1.
We are talking crypto like Bitcoin, Ether and LINK, commodities like gold and silver and even equity indexes
All of these synths are backed up by this overcollateralised pool of SNX tokens. This pooled collateral model enables users to perform conversions between Synths directly with the smart contract.
🖥 Synthetix Ecosystem 🖥
Firstly, we have that Mintr dApp. This is a mechansim that allows those SNX holders to mint and stake their synths. When that is done it also allows you to manage your collateral ratio and when you want to withdraw your SNX, burn those synths.
Then you have that synthetix decentralised exchange. This is much like many other DEX’s out there in that it allows you switch one synthetic asset for another in a completely decentralised manner.
📈 SNX Token 📈
SNX is an ERC20 token that was initially issued to investors in a number of private and public sales back in early 2018. They have changed their inflationary structure such and it will conclude in September 2023 at a supply of roughly 250 Million SNX. Once this is reached, inflation will be a fixed 2.5% annually.
The primary use case of SNX is as a staking token. The main benefits that come from this are two fold. Firstly, you have the rights to that fixed monetary inflation.
You also have additional return potential from those trading fees. You see, when synths are traded on the Synthetix exchange, they incur a 0.3% fee.
So, if there is a lot of activity on the synthetix exchange then this means a lot of fees which are then paid to those staking SNX.
💥 SNX Price Potential 💥
Prices have been steadily increasing. While it has not rallied as much as some other DeFi tokens, it’s still up a mere 7.5 times since I covered it in February.
Then you have to consider that decentralisation move. If Synthetix is able to fully pull that off then it will further bolster its position as a leading Defi dex.
Coinbase seems to be lingering in the background. Yes, in June of this year the foremost centralised exchange stated that they were considering SNX for a listing.
For those of you who follow those Weiss ratings, they recently released a report that was pretty bullish on the prospects of SNX. They also had their own “conservative” price prediction for SNX to triple by the end of the year.
🤔 Regulatory Question 🤔
What Synthetix is doing is providing a market for synthetic securities. This falls squarly into the purview of the SEC and those entities that do not register for it, are operating against the law.
I was quite encouraged to learn Synthetix was taking the step of a full transition to a decentralised governance framework. And then in July of this year, the foundation was completely decomission.
Going forward, there will be three DAOs that will be taking over. These will be the protocolDAO, grantsDAO and synthetixDAO.
Control of the admin keys will be in the hands of the protocolDAO. Here, there will be 8 individuals who control it and the contracts will be secured with a 4-of-8 multisig wallet. Governance will also be controlled and voted on by the broader community who hold those SNX.
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading Forex, cryptocurrencies and CFDs poses considerable risk of loss. The speaker does not guarantee any particular outcome.
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