Blog Borrowing Synthetix Network Token (SNX) is putting everything on the blockchain, even the kitchen sink

Synthetix Network Token (SNX) is putting everything on the blockchain, even the kitchen sink

date October 6, 2020 time 4 min read 378 views

Synthetix is a decentralized protocol built on the Ethereum blockchain. Powered by the Synthetix Network Token, Synthetix lets you trade real-world assets using crypto. We’re going to give you a close look at what Synthetix Network token is, where to get Synthetix Network token, and how you can use it to grow your assets.

In 2020 the Synthetix Network token price increased by 926%. Many claim that the hype around DeFi coins was to blame. But Synthetix has very ambitious plans for the future of blockchain as well.

Here’s what you need to know about one of the leading stablecoins at the head of the DeFi revolution today.

What is Synthetix Network Token?

Synthetix is a DeFi asset issuance protocol built on the Ethereum blockchain. Put simply, it allows you to bet on the price of crypto, stocks, currencies, and other real-world assets with your crypto.

This is done through an ERC20 token (crypto based on the Ethereum blockchain) called sUSD that tracks the price of the real-world asset it represents. These assets on the blockchain are called “Synths”.

What is Synthetix Network Token?
What is Synthetix Network Token? (source: cdn.substack.com)

What’s a Synth?

Synthetix allows you to bet on an asset on the Synthetix Network without holding the asset. This is a pretty exciting concept once you get your head around it.

A Synth on the Synthetix chain is a placeholder copy of a real-world asset that exists on the Ethereum blockchain. The synth represents the value of said item.

You can bet on the value of a real-world asset (e.g. USD) by holding the synth (e.g. sUSD). When the price of the real-world asset goes up, the price of the synthetic asset goes up with it.

You can trade Synths or burn them to access the SNX acting as collateral.

What can you do with Synthetix Network Token?

All Synths are collateralized by the Synthetix Network Token (SNX). These tokens are locked into a smart contract on Ethereum and maintain the value of the asset. To reclaim your SNX, you must first “burn” your Synths and remove them from the blockchain.

By staking SNX to your personal node, you can create new Synths, collect rewards, and grow your wealth.

To date, the Synthetix community has been extremely engaged with the project. Currently, 85% of the total SNX supply (about $758 million) is locked in the Synthetix protocol.

Synthetic assets let you invest in almost anything
Synthetic assets let you invest in almost anything (source: pixabay.com)

What makes the Synthetix Network Token special?

Traditionally, betting and trading on high-value assets like stocks have been more or less limited to the likes of Wall Street. The Synthetix Network takes the Wall Street dream and scales it globally.

SNX can be staked as collateral to create any synthetic asset. This is not limited to sUSD. You can bet on synthetic gold, stocks, Japanese Yen, and more. 

If the synthetic asset doesn’t exist, you can just create it. Theoretically, you can bet on any asset and earn SNX as the value of the real asset rises. 

The difference is that you do not own the asset. You own the synthetic asset and its synthetic value on the Synthetix network. Even though these synthetic assets only exist on the Synthetix network, you can still burn them to access your SNX collateral and trade this in for other cryptocurrencies or USD.

You can stake Synthetix Network Tokens to create synthetic assets online
You can stake Synthetix Network Tokens to create synthetic assets online
(source: pixabay.com)

Where to get Synthetix Network Tokens ?

You can SNX trade tokens on the following exchanges:

  • Kyber
  • UniSwap
  • Poloniex
  • Kucoin
  • CoinGecko

If you are more interested in staking SNX to create new Synths, you’ll need the Synthetix Mintr dApp. 

Where to store Synthetix Network Token ?

You can store SNX in compatible Ethereum wallets like:

  • MyConstant Coin Balance
  • MetaMask
  • Trezor
  • Ledger
  • Coinbase Wallet
  • TrustWallet by Binance

But what if you want to buy up Synthetix but don’t want to sell off your crypto to do it? At MyConstant we have a solution…

Trade real assets in the world of crypto
Trade real assets in the world of crypto (source: pixabay.com)

Buy SNX on margin at the best prices anywhere on MyConstant

On MyConstant, you can take out a loan against your crypto assets to buy SNX directly at the best exchange prices out there. We source from all the major exchanges to make sure you get the best deal out there.

No need to shop around for the best exchange prices. Get an SNX loan at a great price on MyConstant today.
No need to shop around for the best exchange prices. Get an SNX loan at a great price on MyConstant today.

When you withdraw in Synthetix Network Token with your crypto loans on MyConstant you also get:

  • Borrow at rates as low as 6% APR
  • Your collateral secured in a third party wallet
  • The best exchange rate guaranteed
  • No fees
  • 24/7 customer service
  • Borrow against 70+ different cryptos
  • Early repayments in USD, stablecoins, crypto

Buy SNX on MyConstant and get in on one of the most exciting DeFi products in the crypto world today without selling your assets. Sign-ups are free.

Share this article

MyConstant Blog

MyConstant Blog

Gift card

Tags: where to get synthetix network token where to store synthetix network token synthetix network token review what is synthetix network token synthetix network token price

0 0 vote
Article Rating
guest
0 Comments
Inline Feedbacks
View all comments

Related Articles