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synthetix network token  (SNX)

Synthetix Network Token (SNX)

$20.20 15.3%
0.00041456 BTC 5.3%
0.01319870 ETH 5.6%
51,821 people like this
Market Cap
$2,951,361,691
24 Hour Trading Vol
$300,760,568
24h Low / 24h High
$17.37 / $21.03
Circulating Supply
147,165,435 / 219,252,220
Fully Diluted Valuation
$4,397,042,014
Max Supply
219,252,220
Total Value Locked (TVL)
$2,466,293,223
Market Cap / TVL Ratio
1.2
Fully Diluted Valuation / TVL Ratio
1.78
SNX
USD

How do you feel about Synthetix Network Token today?
92%
8%
👍 👎
1h
24h
7d
14d
30d
1y
-0.8%
15.3%
-11.8%
-19.8%
18.8%
2210.2%

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Synthetix Network Token Price and Market Stats

SNX Price $20.20
Synthetix Network Token ROI 3939.1%
Market Cap $2,951,361,691
Market Cap Dominance 0.19%
Trading Volume $300,760,568
Volume / Market Cap 0.0965
24h Low / 24h High $17.37 / $21.03
7d Low / 7d High $18.08 / $21.10
Market Cap Rank #28
All-Time High $28.53 -29.7%
Feb 14, 2021 (16 days)
All-Time Low $0.03478640 57551.0%
Jan 06, 2019 (about 2 years)
Affiliate disclosures
# Exchange Pair Price Spread +2% Depth -2% Depth 24h Volume Volume % Last Traded Trust Score
1 SNX/USDT
$20.28
20.122 USDT
0.55% $1,735,120 $1,785,314
$3,279,453.07
161704.687 SNX
1.09% Recently
2 SNX/ETH Info 0xc011a73ee8576fb46f5e1c5751ca3b9fe0af2a6f
$19.86
0.0131420667155278 ETH
0.6% $744,069 $741,833
$11,632,266.56
585646.024 0XC01
3.88% Recently
3 SNX/USD
$20.11
20.1101 USD
0.12% $415,148 $518,449
$15,217,753.04
756721.898 SNX
5.06% Recently
4 SNX/USDT
$20.05
19.989 USDT
0.11% $322,585 $396,907
$27,121,548.23
1352738.939 SNX
9.06% Recently
5 SNX/BTC
$19.90
0.0004105 BTC
0.14% $314,634 $411,902
$7,068,161.00
355215.337 SNX
2.36% Recently
Show More
Anomaly BTC/USD Stale

About Synthetix Network Token Coin

Synthetix Network Token price today is $20.20 with a 24-hour trading volume of $300,760,568. SNX price is up 15.3% in the last 24 hours. It has a circulating supply of 150 Million SNX coins and a max supply of 219 Million. WhiteBIT is the current most active market trading it.

What is Synthetix Network Token (SNX)?

Synthetix Network Token (SNX) is an exchange-based token created and issued by Synthetix, a decentralized synthetic asset issuance protocol built on the Ethereum blockchain.

 

What is Synthetix?

Synthetix's front page

Synthetix is a decentralized synthetic asset issuance protocol founded by Kain Warwick and the Synthetix Foundation. Initially, it was known as Havven when it first launched in September 2017. During its seed round and token sale, it managed to raise $30 million by selling 60 million HAV tokens to investors. In late 2018, the platform expanded its vision and rebranded to Synthetix. Today, the platform is the largest decentralized exchange for derivatives in the decentralized finance (DeFi) space, boasting an impressive ~$700M in total value locked (TVL) as of November 2020.

 

What are synthetic assets?

Synthetic assets or Synths are derivatives that provide exposure to real world assets on the Ethereum blockchain. Similar to derivatives in traditional financial markets, Synths allow users to hedge and reduce their risk, speculate on price movements and gain access to unavailable assets or markets. This is all accomplished without an individual ever holding the underlying asset.
 

What can Synthetix Network Token (SNX) do?

Minting synths using Mintr

Synthetix Network Token (SNX) is primarily used as collateral to mint synthetic assets. SNX holders can head over to Mintr to stake their SNX into the Synthetix smart contract and create sUSD – synthetic United States dollars. The amount of sUSD minted will depend on two factors: i) the amount of SNX staked, and ii) the collateralization ratio (C-Ratio) of the platform. At present, the C-Ratio is 600%. This means that in order to mint 1 sUSD, a user would need to stake at least 6 SNX as collateral.

SNX is also used to earn rewards. SNX holders who stake their SNX into the platform are incentivized to do so through two main reward mechanisms: i) exchange rewards and ii) staking rewards. Exchange rewards are generated whenever a trade takes place on Synthetix, the value of which can range from 0.1-1% of the trade value, though it is typically 0.3%. Staking rewards meanwhile, are rewards from the protocol’s inflationary monetary supply. The new SNX generated by the protocol is given to SNX holders who stake their tokens. Both these rewards are distributed as SNX on a weekly, pro-rata basis and are escrowed for 1 year.  This is subject however, to an individual’s compliance with the target C-Ratio.

Synthetix also offers other time-limited incentives such as liquidity provider rewards. These can be viewed on Mintr by clicking the LP Rewards tab.
 

How do I obtain Synthetix Network Tokens (SNX)?

Synthetix Network Tokens (SNX) can be obtained by buying them from an exchange such as Binance or Uniswap. You can find SNX trading on various centralized and decentralized cryptocurrency exchanges via the link provided. Alternatively, you can check out this page's markets tab for a list of all the exchanges that are trading SNX pairs. 

 

What kind of Synthetic Assets/Synths are there?

Synthetix Exchange lists all its supported synthetic assets under its Synths tab. For a broad categorization of the different Synth types, as well as further explanation of their inner workings, you can check out Synthetix’s litepaper. Broadly, there are 5 types of synthetic assets:

  1. Foreign Exchange (Forex): Synths that track the price of forex currencies
    • Examples: sUSD, sEUR, sAUD etc.
  2. Commodity: Synths that track the price of commodities
    • Examples: sOIL, sXAU, sXAG
  3. Crypto: Synths that track the price of cryptocurrencies
    • Examples: sBTC, sETH, sXRP etc.
  4. Index: Synths that track an index - a basket of stocks or cryptocurrencies
    • Examples: sDEFI, sCEX, sNIKKEI etc.
  5. Inverse (iSynths): Synths that inversely track the price of assets, such as cryptocurrencies or commodities
    • Examples: iBTC, iETH, iOIL etc.

 

How does Synthetix work?

SNX transactional flow

The process of staking and minting synthetic assets is similar in principle to how an individual would obtain an over the counter (OTC) derivative. OTC derivatives are derivatives that are bought through broker-dealer networks, rather than on stock exchanges. This means that they are inherently riskier, bearing significant counterparty risk. Thus, to mitigate this, each party is often required to put up collateral in a transaction.

In Synthetix, the act of obtaining a derivative is similar. A user first needs to lock-in or stake their collateral, SNX, into the smart contract before it issues the synthetic asset in return. However, there are a few key differences.
Firstly, Synthetix operates on a peer-to-contract model, rather than a peer-to-peer model used in traditional OTC derivatives markets. This means that Synths are traded for one another through a smart contract, rather than with a corresponding party or individual. When a trade is executed on Synthetix, the smart contract takes and burns the given Synth and mints an amount of corresponding Synth, determined by exchange rates from Chainlink’s decentralized price feeds.

Secondly, users who lock-in their collateral incur debt. Initially, the value of the debt will depend on the amount of Synths the user has minted. However, this value is non-static and will fluctuate. This is because the debt represents a portion of total network debt, whose value increases or decreases depending on the exchange rate and supply of Synths in the protocol.

For instance, if a user mints $1000 worth of sUSD and the total value of all Synths in the protocol is $1 million, then the user would hold 0.1% of total system debt. If then, the total value of Synths doubles, then the user’s debt value would also double, and vice versa.

In the event that this occurs, the user’s C-Ratio may fall below the stipulated target level of 600%. The individual would then need to either i) burn some minted Synths or ii) obtain more SNX and stake it into the protocol to mint more Synths, to bring his/her ratio back up. No rewards will be given until then. More information on debt can be found in Synthetix’s litepaper.

Finally, Synthetix generates rewards for users. As mentioned before, Synthetix offers exchange and staking rewards to users, which incentivize participation and compliance with the protocol. This is unlike traditional derivatives markets, which do not have this rewards feature.

 

Who governs Synthetix?

The Synthetix Foundation has been responsible for the governance of the protocol since its inception in 2017. It does this through two proposal mechanisms: i) Synthetix Improvement Proposals (SIPs) and ii) Synthetix Configuration Change Proposals (SCCPs). The former deals with proposed changes to Synthetix’s smart contract while the latter is concerned with proposed changes to values such as the C-Ratio and exchange fees. The various SIPs and SCCPs can be viewed freely at their respective links.

However, in line with moving towards greater decentralization, the Synthetix Foundation was decommissioned on 28th July 2020. In its place, three decentralized autonomous organizations (DAOs) were formed: i) ProtocolDAO, ii) GrantsDAO and iii) SynthetixDAO. More information on the roles and responsibilities of these DAOs can be found in Kain Warwick’s blogpost here.

 

Where can I learn more about SNX?

To learn more about Synthetix Network Token (SNX) and Synthetix in general, you may watch Crypto Finder’s interview with Kain Warwick, founder of Synthetix here:

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