Review Synthetix project - All information about SNX token

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Synthetix is a decentralized synthetic asset issuance protocol built on top of Ethereum that allows users to optimize their capital through the issuance of Synths. Should you invest in SNX token? 

 

Review Synthetix project 

 

Synthetic assets are collateralized by SNX tokens, as they are locked in a contract allowing the issuance of the aggregate assets (also known as Synth). Synthetix's asset exchange model allows users to make the switch between Synths directly with the smart contract, avoiding third-party interference. Synthetix allows users to "contact" assets such as fiat money (USD, EUR, JPY), Cryptocurrency (BTC, ETH, BNB), Commodities (XAU, XAG).

 

How does Synthetix work?

 

In Synthetix model, users will lock their SNX to:

- Stake and receive a SNX token reward

Issue Synths at the specified rate and can then exchange them on the Synthetix DEX. When users want to unlock their SNX, they have to burn the Synth number according to the original proportion they released.

- Share transaction fees generated when users transact Synths with each other through Synthetix DEX exchange.

 

 

What is outstanding about Synthetix Project?

 

The highlight of Synthetix is the idea that allows users to optimize their capital through the issuance of Synths. At the same time, make them liquidation by allowing the trading of these Synths on its DEX platform.

 

What SNX is intended for in the Synthetix ecosystem

 

• The SNX token used in the Synthetix ecosystem is as follows:
• SNX is used to Stake and receive Reward as a SNX token.
• Used to lock as collateral to release Synth to the market.
• Pay transaction fees on DEX Synthetix.

 

SNX token transaction fees

 

On the Synthetix exchange, the transaction fee on the exchange is 0.3% per transaction. Besides, SNX tokens are also ERC-20 so transaction fees are also charged when transferring tokens in the Ethereum Blockchain network.

Other exchanges: When trading on the exchange you will be charged with withdrawal fees and transaction fees.

 

The future of SNX Token

 

In the short term, locking the SNX tokens to issue Synth and receiving the Staking reward makes the supply scarce, which makes the demand for buying increase.

In the long run, when the Staking reward drops so slowly that the majority of users find blocking the SNX to receive a Reward is no longer attractive, what keeps them going to lock the SNX is to share the Transaction Fee as owner. owns SNX.

So in the future, 3-5 years from now, the development of Synthetix Exchange is decisive to the survival of the project.

Exchanges are generally one of the most fiercely competitive segments in this space. Before the big names Binance, Houbi, Binance Dex ... will the Synthetix Exchange get a large enough piece of cake for itself in this market.

 

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