Synthetix is a derivatives liquidity protocol on Ethereum that facilitates the issuance and trading of synthetic assets. Each synthetic asset, or Synth for short, is an ERC20 token that tracks the price of an external asset. The post what is Synthetix Network Token? appeared firs...
Synthetix is a derivatives liquidity protocol on Ethereum that facilitates the issuance and trading of synthetic assets. Each synthetic asset, or Synth for short, is an ERC20 token that tracks the price of an external asset. For example, each sUSD token tracks the price of the US dollar.
What is SNX Token?
According to the explanations, Synthetix hosts a wide range of Synths including traditional currencies, cryptocurrencies, commodities, and inverse indexes.
Synthetix is a decentralized synthetic asset issuance protocol built on Ethereum. These synthetic assets are collateralized with the Synthetix Network Token (SNX) when locked in a contract, facilitating the issuance of Synths. This collateral model allows users to convert between Synths directly through a smart contract, eliminating the need for counterparties.
The platform’s explanations indicate that this mechanism solves the liquidity problem faced by DEXs.
Additionally, Synthetix currently supports synthetic traditional currencies, cryptocurrencies, and commodities.
All Synths are backed by SNX tokens and are currently at a collateralization ratio of 750%. However, it is stated that this ratio may be increased or decreased in the future through community governance mechanisms. Also, SNX stakers incur debt when they mint Synths and must burn Synths to repay this debt in order to unlock their SNX.
According to the platform, there are currently five categories of Synths: traditional currencies, commodities, cryptocurrencies, inverse cryptocurrencies, and cryptocurrency indexes. Traditional currency Synths include sUSD, sEUR, sKRW, while cryptocurrencies include sBTC, sETH, and sBNB among others.
Reviews of Synthetix Network Token
Looking at the comments on SNX Token, investors seem hopeful for this cryptocurrency as SNX token is charting an upward trajectory and is trading at $6.16 at the time of writing.
In addition, according to investors’ comments, the SNX token is experiencing a decline due to Bitcoin and is expected to rise. However, the slowdown in the price movements of the SNX token is also causing concern among investors.
Furthermore, due to the increasing interest of investors, searches such as “SNX Token, SNX Binance, where to buy snx token” are also on the rise.
Comments on SNX Token
Those commenting on the SNX token are evaluating the cryptocurrency in terms of its highest and lowest prices. The significant difference between SNX’s lowest and highest values and the current price being close to the record price are attracting investors’ attention.
It is worth mentioning that SNX token saw its all-time low of $0.0324 on January 5, 2019, and its all-time high of $7.37 on August 15, 2020.
In addition, the Synthetix Network Token is ranked the 32nd largest cryptocurrency by market cap with a trading volume of $583,052,407 USD according to CoinMarketCap data.
How to Buy Synthetix Network Token?
The SNX token, which has attracted the interest of investors, can be purchased quickly and safely through Binance, the world’s largest cryptocurrency trading platform by transaction volume.
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