Synthetix is developing a decentralized protocol for providing liquidity, accessible by any protocol for a range of uses. Its substantial liquidity and minimal fees act as a foundation for numerous exciting protocols on both the Optimism and Ethereum networks. Within the Synthetix ecosystem, several user-centric protocols like Kwenta (Spot and Futures), Lyra (Options), Polynomial (Automated Options), and 1inch & Curve (Atomic Swaps) utilize Synthetix liquidity to fuel their operations. Synthetix operates on both the Optimism and Ethereum mainnet. The Synthetix Network is supported by collateral from SNX, ETH, and LUSD, which facilitates the creation of synthetic assets, known as Synths. These Synths mimic and offer returns based on the performance of the underlying assets, sparing the need to own them directly. This pooled collateral supports various composable financial instruments on-chain, underpinned by Synthetix's liquidity. Upcoming exciting launches include Perps V2, which seeks to enable futures trading on-chain with low fees through off-chain oracles, and Synthetix V3, which will revamp the protocol to reach its original vision of being a completely permissionless derivatives protocol. To discover more about Synthetix, you can visit their blog or join the SNX Discord.
The platform's goal is to expand the cryptocurrency realm by integrating non-blockchain assets, thus granting access to a more expansive financial marketplace.
Who Founded Synthetix?
Synthetix made its debut in September 2017, initially named Havven (HAV), founded by Kain Warwick. Approximately a year later, it rebranded to Synthetix.
Kain Warwick, the mastermind behind Synthetix, also serves as a non-executive director at the blueshyft retail network. Before Synthetix, Warwick was involved in several other cryptocurrency ventures and established Pouncer, an Australian-exclusive live auction platform.
The CEO of the project, Peter McKean, brings over 20 years of software development experience and has previously worked as a programmer at ICL Fujitsu.
Jordan Momtazi, Synthetix's COO, is skilled in business strategy, market analysis, and sales leadership, with years of experience in blockchain, cryptocurrency, digital payments, and e-commerce systems.
Justin J. Moses, the CTO, held the position of director of engineering at MongoDB and was the deputy practice head of engineering at Lab49. He is also a co-founder of Pouncer.
What Distinguishes Synthetix?
Synthetix functions as a decentralized exchange (DEX) and a platform for synthetic assets. The protocol is crafted to give users exposure to underlying assets through synths without the need to own the actual assets.
Users can independently trade and exchange synths on the platform. There is also a staking pool where SNX token holders can stake their tokens and earn a portion of the transaction fees on the Synthetix Exchange.
The platform uses smart contract price delivery protocols referred to as oracles to track the underlying assets. Synthetix facilitates seamless synth trading, sidestepping liquidity and slippage challenges, and removes the necessity for third-party intermediaries.
SNX tokens act as collateral for minting synthetic assets, meaning when synths are created, SNX tokens are sequestered in a smart contract.
Since its inception, the protocol has shifted to the Optimistic Ethereum mainnet to help minimize gas fees and reduce oracle latency.
How Many Synthetix (SNX) Tokens Are in Circulation?
The total supply cap of SNX is set at 212,424,133 tokens, with 114,841,533 SNX currently in circulation as of February 2021.
During its seed round and token sale phases, Synthetix sold over 60 million tokens, raising $30 million. Out of the total 100,000,000 tokens issued during the ICO, 20% was designated for the team and advisors, 3% for bounties and marketing incentives, 5% for partnership incentives, and 12% for the foundation.
How is the Synthetix Network Protected?
The SNX token adheres to Ethereum's ERC20 standard. The security of the Synthetix network is provided through a proof-of-stake (PoS) consensus mechanism. SNX holders stake their tokens and receive a share of the network's fees as returns.
Additionally, SNX stakers can earn rewards through the protocol's inflationary monetary policy, known as staking rewards.
