Blog Crypto Synthetix Network Token (snx): Put Everything on The Blockchain

Synthetix Network Token (snx): Put Everything on The Blockchain

date October 6, 2020 time 4 min read 1302 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 (snx crypto), 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 Litecoin vs Ethereum blockchain. Put simply, it allows you to bet on the price of crypto, stocks, currencies, and other real-world assets with your crypto (such as qtum coin, dgb coin etc.

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 crypto acting as collateral.

What can you do with Synthetix Network Token?

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

By staking SNX crypto 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 crypto 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 crypto 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 crypto 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 crypto collateral and trade this in for other cryptocurrencies (such as fetch ai staking) 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 crypto to create new Synths, you’ll need the Synthetix Mintr dApp. 

Where to store Synthetix Network Token ?

You can store SNX crypto 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 like harmony crypto or more 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 crypto 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 crypto 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 and earn interest on crypto up to 7% APR.

Let’s sign-ups are free.

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George Schooling

George Schooling

Buy MCT token with ease and enjoy the staking rate of up to 12% APR

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