A brief summary about SNX, and what makes it unique.
What is Synthetix?
Synthetix, formerly known as Havven (HAV), is a DeFi protocol that helps users create derivative like “synthetic” assets, which can have any other underlying asset, such as gold, dollars, other cryptos, etc . Users can obtain returns on synthetic assets without directly owning the underlying assets. Synthetic assets are highly liquid. Synthetix integrates off-chain assets into a decentralized system, diversifying the choices available to DeFi investors. Synth tokens are created by collateralization of the platform’s native token, SNX, into smart contracts. Users are rewarded with newly minted SNX tokens for participating in the network when they lock their SNX tokens into smart contracts and create synth tokens.
Why buy SNX?
SNX tokens can be staked to earn a share of the transaction fee on the exchange. SNX tokens are needed to mint synth tokens. The platform has reduced slippage and liquidity issues through smart contracts. The gas fee on the platform was also reduced when it shifted operations to the Optimistic Ethereum mainnet. This increased the price of SNX by up to 20% immediately. SNX’s current coinmarketcap ranking is 113.
Disclaimer : This article is intended for informational purposes only. While we try our best to verify the contents of our articles, DeFy cannot guarantee that this article, or any information we sourced from third parties which has been included in this article, are free of error. This article should not be substituted for investment/ financial advice. Any actions taken based on information contained in this article are at your own risk. DeFy does not claim to endorse views presented in this article as our own.