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.
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