Altcoins News
By Dan Saada
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Synthetix is the backbone for derivatives trading in Defi, thus making it possible for anyone from anywhere to gain on-chain exposure to different types of assets.
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For clarity on derivative trading, the word derivative comes from the word derive, in trading terms derivative is a financial security that has value and it is reliable upon and…
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The idea is to connect with the deep liquidity of synthetic assets to power a new era of financial tools.
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The Synths back the “pooled collateral model” thus making it possible for users to convert between Synths directly by making use of the smart contract without the need of counter…
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This pooled collateral model is useful because it solves the liquidity and slippage issues, which is faced by DEX’s.
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The value of the SNX token is derived from the “right to participate” in the network and to capture the fee, which is generated by the Synth Exchanges.
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Those who are just trying to understand SNX and the entire process will do better to understand SNX as a collateral, Synth Pegging Mechanism, Synthetix Exchange, The Current…
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It is important to understand that every time an SNX holder stakes their SNX and mint Synths, they are issuing a debt.
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While several investors understand this risk, it is important to understand that the price of most Altcoins are correlated to Bitcoin and Ethereum.
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