Article Summary, Automatically Generated By AI
About Synthetix
Key Points
- Synthetix is a decentralized liquidity provisioning protocol.
- It provides deep liquidity and low fees for various protocols on Optimism and Ethereum.
- SNX, ETH, and LUSD collateralize the Synthetix Network, enabling synthetic assets (Synths).
- Upcoming releases: Perps V2 and Synthetix V3.
Founders and Team
- Kain Warwick: Founder, previously worked on other cryptocurrency projects.
- Peter McKean: CEO, over 20 years of software development experience.
- Jordan Momtazi: COO, business
About Synthetix: Pioneering the Future of Decentralized Finance
Introducing Synthetix (SNX): A Pioneering DeFi Protocol
Synthetix is pioneering a decentralized liquidity provisioning protocol, accessible to any protocol for diverse purposes. Notably, its profound liquidity and minimal fees serve as a robust backend for numerous innovative protocols on both Optimism and Ethereum. Several user-facing protocols within the Synthetix ecosystem, including Kwenta (Spot and Futures), Lyra (Options), Polynomial (Automated Options), and 1inch & Curve (Atomic Swaps), leverage Synthetix liquidity to power their protocols. Built on Optimism and Ethereum mainnet, the Synthetix Network is collateralized by SNX, ETH, and LUSD, enabling the creation of synthetic assets (Synths). These Synths track and provide returns on the underlying asset without requiring direct asset ownership. This pooled collateral facilitates a range of on-chain, composable financial instruments backed by Synthetix liquidity. Among the most anticipated upcoming releases from SNX are Perps V2, which aims to enable low-fee on-chain futures trading through the utilization of off-chain oracles, and Synthetix V3, which seeks to rebuild the protocol to achieve its original goal of becoming a fully permissionless derivatives protocol. To learn more about Synthetix, visit their blog or join the SNX Discord.
The platform seeks to expand the cryptocurrency landscape by incorporating non-blockchain assets, thereby granting access to a more diverse and resilient financial market.
The Visionaries Behind Synthetix: Meet the Founders
In September 2017, Kain Warwick inaugurated the network, initially dubbed Havven (HAV), which underwent a rebranding process approximately a year later, emerging as Synthetix.
Kain Warwick, a visionary entrepreneur, is the founder of Synthetix and a non-executive director at the esteemed blueshyft retail network. With a rich background in the cryptocurrency realm, Warwick has contributed to numerous projects prior to establishing Synthetix. Notably, he also founded Pouncer, a pioneering live auction site catering exclusively to the Australian market.
Peter McKean, the project’s visionary CEO, boasts an impressive tenure of over two decades in software development, with a notable stint as a programmer at ICL Fujitsu.
Jordan Momtazi, Chief Operating Officer of Synthetix, is a seasoned business strategist, market analyst, and sales leader, boasting extensive experience in the realms of blockchain, cryptocurrency, digital payments, and e-commerce systems.
Justin J. Moses, the esteemed Chief Technology Officer, boasts an impressive pedigree, having formerly served as the Director of Engineering at MongoDB and Deputy Practice Head of Engineering at Lab49. Notably, he is also the co-founder of Pouncer.
Unveiling the Unparalleled Synthetix Advantage
Synthetix is a decentralized exchange (DEX) and a platform for synthetic assets, ingeniously designed to provide users with exposure to underlying assets through synths, eliminating the need to physically hold the assets themselves.
The platform empowers users to engage in autonomous trading and exchange of synths, while also providing a staking pool where SNX token holders can participate and receive a proportionate share of the transaction fees generated on the Synthetix Exchange.
The platform leverages smart contract-based price delivery protocols, known as oracles, to track the underlying assets with precision. Through Synthetix, users can effortlessly trade synths, bypassing the pitfalls of liquidity and slippage issues, while also eliminating the necessity for intermediaries.
SNX tokens serve as collateral for the synthetic assets that are generated, thereby necessitating the locking up of SNX tokens within a smart contract whenever synths are issued.
Since its inception, the protocol has successfully migrated to the Optimistic Ethereum mainnet, thereby significantly mitigating gas fees on the network and substantially reducing oracle latency.
What Is the Circulating Supply of Synthetix (SNX) Coins?
The maximum supply of SNX is capped at 212,424,133 coins, with 114,841,533 SNX currently in circulation as of February 2021.
During the seed round and token sale stages, Synthetix successfully sold over 60 million tokens, securing a substantial $30 million in funding. Of the total 100,000,000 coins issued during the Initial Coin Offering (ICO), a 20% allocation was designated for the team and advisors, while 3% was reserved for bounties and marketing incentives, 5% for partnership incentives, and 12% for the foundation.
The Security Architecture of the Synthetix Network
The SNX token is fully compliant with Ethereum’s ERC20 standard, ensuring seamless integration. The Synthetix network is fortified by a proof-of-stake (PoS) consensus mechanism, which enables holders to stake their SNX tokens and accrue returns generated from network fees.
Alternatively, SNX stakers can accrue rewards through the protocol’s inflationary monetary policy, a mechanism aptly referred to as staking rewards.
Where to Acquire Synthetix (SNX): A Comprehensive Guide
SNX tokens can be acquired at prominent cryptocurrency exchanges, including:
- The esteemed Binance exchange
- OKEx, a prominent cryptocurrency trading platform
- Coinbase Pro, a leading digital asset exchange
- Uniswap (V2), a decentralized finance (DeFi) protocol
For those eager to delve deeper into the world of cryptocurrency and discover the intricacies of acquiring Bitcoin, CoinMarketCap offers a comprehensive guide, available
here
.