Synthetix Network SNX

Synthetix Network Token (SNX) Inversely Tracks the Price of the Assets from the Price Feeds

March 18, 2020 Off By dan saada

Synthetix Network Token (SNX) is a decentralized synthetic asset platform that facilitates on-chain exposure to real-world currencies, stocks, indices, and commodities.

The hot in the happening at the SNX per the Synthetix AMA is about the upcoming product roadmap, the Hadar release, and the current market trends and its influence in SNX.

Several Traditional asset classes are set to come in Q2 2020.  It has been stated that synthetix_io will be using Chainlink oracles to secure their new price feeds.

Several upcoming product developments are taking place on Synthetix.Exchange.  Derivatives trading on Ethereum is up on the cards. Of the many transfers reported from SNX Whale Watch, “50,189 SNX Transferred from 0x4Cf93A39BaEBf3419e74C716dFEf09Ce9dF3A073 to Kyber Network #snx #synthetix.”

Synthetix being an Ethereum-based platform, supports several other assets like equities and hedge securities. They also intend to provide leveraged trading on tokens. 

Sydney Ifergan, the Crypto Expert, tweeted:  “Synthetix Network Token (SNX) well know it is important to secure and build on the architecture of the protocol. They have as well introduced product improvements.”

Recently several SNX stakes asked about when they will be marketing the exchange; the reply for that was that they would do it when they feel that they have reached a point where several new users will have a positive experience. They are not interested in encouraging traffic until them as they opine that a poor trading experience will be a hurdle to adoption.

Synthetix Network Token (SNX) Stakers Maintain Collateralization

New Crypto Synthrefers to crypto-based synthetic assets.  Synths are assets that facilitate exposure to assets like gold, Bitcoin, US dollars, Tesla, and AAPL within the Ethereum blockchain.  There are exchange rewards.  Some incentives are focused on ensuring that SNX stakers maintain their collateralization.

“The Synthetix Network Token (SNX) gets staked as collateral to back Synths and entitles stakers to receive fees generated by Synth trades on Synthetix.Exchange.”

The Synth inversely tracks the price of the assets from the price feeds provided by the Oracle.  The Synth will freeze when the asset type reaches its upper limit or lower limit.   Any time the asset reaches the set price limit, it is frozen.  The sooner the asset reaches the restrictions, it will be replaced with the next unit with a different limit.

Those who are interested in getting to understand how the network functions they need to go through the Lite Paper. There is more to know about minting, burning, C-Ratio, stakers, debt, and the pooled counterparties.

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