Synthetix (SNX) 101: Create Your Own Synthetic Assets Now!

Synthetix (SNX) 101: Create Your Own Synthetic Assets Now!

Synthetix (SNX) is one of the top decentralised finance (DeFi) platforms currently available. According to Coinmarketcap, its native token SNX ranks 17th in terms of market capitalization in the DeFi altcoin list. The project is primarily a decentralised exchange and synthetic asset distribution platform.

It allows users to publish and trade their digital assets. Digital assets that represent other real assets such as stocks, currencies, commodities, or cryptocurrencies can be created in the ecosystem. Additionally, Synthetix has a staking mechanism that encourages users to provide liquidity to the platform. If you are interested in learning more about the project and its native token SNX, check out this article.

What is Synthetix and How Does It Work?

Synthetix is an Ethereum-based DeFi ecosystem that operates as a decentralised exchange (DEX) and asset publisher. It secures itself through a staking incentive program. Users can create synthetic assets that they can monitor in real-time via oracle feeds, allowing them to bring any real-world asset into the digital world. Unlike traditional financial systems, Synthetix does not require KYC (Know Your Customer) from its users. In fact, you don’t even need to create an account.

Anyone can bring Tesla shares, high-yield bonds, real estate, and anything else to the platform as synthetic assets by depositing SNX coins. Those who create synthetic assets can earn passive income from fees paid by people who purchase those assets. One of the most exciting aspects of the Synthetix system is that it can bring billions of dollars’ worth of assets from traditional markets to the Ethereum network.

Synthetix integrates traditional finance into the digital world as a DeFi project. It eliminates intermediaries, allowing users to invest directly. The platform has synthetic (Synth) equivalents of real-world assets such as stocks, currencies, and precious metals. These synthetic assets trade in the virtual world in the same way as they would in the real world thanks to blockchain technology, making it easy and fast to buy and sell them.

What is SNX? Is It a Good Investment?

Synthetix also offers its users the staking feature. Holding SNX cryptocurrency allows you to earn rewards at a certain rate. Additionally, the amount of SNX coins locked as sUSD contributes to the platform’s liquidity needs, and the income generated from transactions is paid regularly and proportionally to token holders. This cryptocurrency is required to create synthetic assets in the ecosystem. You can stake SNX to mint Synth tokens.

Price History of SNX Token

As a leading DeFi protocol, Synthetix has a lot of potential. It allows users from all over the world to create and trade more synthetic assets than any platform to date. However, nothing in the crypto industry is guaranteed. The market experienced a significant downturn in 2022, and while SNX coin was among the top 5 DeFi tokens in 2021, it is currently ranked in the top 20.

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