Synthetix is a decentralized derivatives platform which allows for the representation of real-world assets in the form of derivatives tokens known as Synthetic Assets (called Synths) on Ethereum.
There are two parts to Synthetix - Synthetic Assets (Synths) and its exchange, Synthetix.Exchange. Synthetix allows for the issuance and trading of Synths. Synthetix is currently the second largest DeFi project with over $100 million worth of funds locked.
Recently, Simone Conti and Emiliano Bonassi, the founders of DeFi Italy developed SNX Link, a platform that allows Synthetix users to automate tedious recurring tasks on Synthetix and auto-pilot their investments with the same user experience like any traditional portfolio management platforms. SNX Link aims to be the simplest gateway into the Synthetix ecosystem.
Some of the tedious recurring tasks that need to be done manually at the moment include managing Synths, tracking debts, maintaining good collateral ratios (Synths need to have at least 800% collateral ratio), and claiming weekly staking rewards.
With SNX Link, these tedious recurring tasks will be done automatically. SNX Link makes use of the delegation concept introduced in the recent Synthetix Hadar Release proposal. Synthetix delegations are completely non-custodial and are explained further in SIP-10.
Synthetix delegation enables the possibility for anyone to delegate to a third party (wallet or smart contract) to execute the basic Synthetix system functions such as minting, burning, claiming rewards, and exchanging Synths without passing on custody of funds. By using this method, user funds are never touched by SNX Link.
SNX Link Fees
SNX Link is a two-sided, fully decentralized platform where users pay a fee for delegating certain tasks and keepers receive a reward for executing them. Anyone can be a keeper on SNX Link. No coding skills are required to be a keeper on SNX Link although keepers can also be bots.
At the moment, keepers receive a reward of 0.001 ETH for any claim that is made on behalf of users. Their transaction fee in executing the transaction is also fully refunded.
Users interested in using the automation feature will first need to choose the number of weeks they want to use the service and the maximum amount of gas they are willing to pay for any claim. Users will then pre-pay the gas for transaction fees and a reward of 0.0015 ETH for each claim. 0.001 ETH will be shared with the keeper while 0.0005 ETH will be kept by SNX Link.
Step-by-Step Guide for the “AutoClaim” (Staker)
Click on “Delegate” and confirm the transaction to allow SNX Link to claim rewards on your behalf. With this permission, SNX Link can only execute this specific operation without any access to your funds.
Once the transaction is complete, the delegation is now completed. You are ready to set your preferred parameters for the “Autoclaim”.
Set the number of weeks you want to use the service, select the max gas fee you are willing to spend for each claim and pre-pay the ETH needed for the claim transactions. You are now ready to receive your weekly rewards.
If you want to change the number of weeks delegated or on the maximum amount of gas spent for claim, you can do it at any time in the Staking section of snx.link. You are also free to withdraw pre-paid ETHs for claims whenever you want.
Step-by-Step Guide (Keeper)
Press the “Claim” button on one of the claims available and confirm the transaction on your Metamask. Remember that you will be fully refunded for the transaction fees you pay plus you will get a 0.001 ETH reward for any claim you execute. If there are no claims available, it means other keepers have been faster than you!
Wait until the transaction is confirmed. You do not need to stay on the page.
Once the transaction is confirmed you would have already received your reward and you are ready for the next claim.
Non-Custodial Portfolio Management
Besides automating certain recurring tasks on Synthetix, in the near future, SNX Link will also include a non-custodial portfolio management platform. With this feature, SNX Link will soon look like a crypto version of Wealthfront.
There will be many assets available to investors as traded on Synthetix such as cryptocurrencies, stocks, gold and many more. Investors can passively manage their investments while remaining in full control of their funds.
Traders can select their preferred asset allocation strategy such as:
BTC / ETH Equal Weighted Strategy (50% BTC / 50% ETH)
Stocks / Gold Equal Weighted Strategy (50% FTSE100 or Nikkei225 / 50% Gold)
BTC / Gold Equal Weighted Strategy (50% BTC / 50% Gold)
Thanks to the Synthetix unique features, investors will benefit from infinite liquidity and no slippage.
To achieve its goal to improve the platform, SNX Link submitted a proposal to the Synthetix GrantsDAO. This DAO was born with the aim of supporting the growth of the Synthetix ecosystem with initiatives such as these.