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Synthetix (SNX) Things You Need To Know Before Investing

What Is Synthetix (SNX)?

Synthetix (SNX) is a decentralized finance (DeFi) protocol that provides on-chain exposure to various crypto and non-crypto assets. The protocol is based on the Ethereum (ETH) blockchain and offers users access to highly liquid synthetic assets (synths). Synths track and provide returns on the underlying assets without requiring one to hold the asset directly.

The platform aims to broaden the cryptocurrency space by introducing non-blockchain assets, providing a more robust financial market access.

Who Are the Founders of Synthetix?

The network was launched in September 2017 by Kain Warwick under the name Havven (HAV). About a year later, the company rebranded to Synthetix.

Kain Warwick is the founder of SNX and a non-executive director at the blueshift retail network. Before founding Synthetix, Warwick worked on several other cryptocurrency projects. He also founded Pouncer, a live auction site exclusive to Australia.

Peter McKean, the project’s CEO, has over two decades of experience in software development. He previously worked as a programmer at ICL Fujitsu.

Jordan Momtazi, the COO of SNX, is a business strategist, market analyst, and sales leader with several years of experience in blockchain, cryptocurrency, digital payments, and e-commerce systems.

Justin J. Moses, the CTO, was the former director of engineering at MongoDB and deputy practice head of engineering at Lab49. He also co-founded Pouncer.

What Makes Synthetix Unique?

Synthetix is a decentralized exchange (DEX) and a platform for synthetic assets. The protocol is designed to expose users to the underlying assets via synths without having to hold the underlying asset.

The platform allows users to trade and exchange synths autonomously. It also has a staking pool where holders can stake their SNX tokens and are rewarded with a share of the transaction fees on the SNX Exchange.

The platform tracks the underlying assets using smart contract price delivery protocols called oracles. Synthetix allows users to trade synths seamlessly, without liquidity/slippage issues. It also eliminates the need for third-party facilitators.

SNX tokens are used as collateral for the synthetic assets that are minted. This means that SNX tokens are locked up in a smart contract whenever synths are issued.

Since launch, the protocol has transitioned to the Optimistic Ethereum mainnet to help reduce the gas fees on the network and lower oracle latency.

How Many Synthetix (SNX) Coins Are There in Circulation?

The maximum supply of SNX is 212,424,133 coins, of which 114,841,533 SNX is in circulation as of February 2021.

At the seed round and token sale stages, Synthetix sold more than 60 million tokens and was able to raise $30 million. Of 100,000,000 coins issued during the ICO, 20% were allocated to the team and advisors, 3% to bounties and marketing incentives, 5% to partnership incentives, and 12% to the foundation.

How Is the Synthetix Network Secured?

The SNX token is compatible with Ethereum’s ERC20 standard. The Synthetix network is secured through proof-of-stake (PoS) consensus. SNX holders stake their SNX and earn returns from the network fees.

Another way for SNX stakers to earn rewards is via the protocol’s inflationary monetary policy, known as staking rewards.

Where Can You Buy Synthetix (SNX)?

SNX tokens can be purchased at top exchanges, such as:

  • Binance
  • OKEx
  • Coinbase Pro
  • Uniswap (V2)

Also Raed: SKALE Network (SKL) Things You Need To Know Before Investing

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