Hi everyone, I’m the editor Because the items introduced in this episode are more complicated So it takes more time to prepare Please forgive me for not being able to release the video in time for last weekend In recent months, I have introduced a variety of Defi products to you For example, MakerDao Compound Finance Unisawp Exchange, etc. Each project has its own unique function Full of innovative elements Under the new opportunity of Defi Recently, another super popular Defi project ran out It replaces the position of Compound Finance, which is the second largest in USD equivalent of locked positions in Defi products. What is Synthetix? Why has it been paid attention and sought after by many people recently The editor of this episode decided to introduce to you I think many coin lovers are like Xiaobian It will feel strange to get in touch with Synthetix’s platform for the first time.
I have no idea what the Synthetix project is doing The reason is that the platform seems to contain a lot of functions and is very complicated It’s easy to dispel the idea of knowing more about their platform In order to give everyone a preliminary idea of the Synthetix project The editor first briefly explain what the Synthetix project is doing Synthetix is an asset that can integrate traditional financial products and cryptocurrencies Become the release platform of Synthetic Asset In fact, as long as any asset is valuable and marketable The asset can become a synthetic asset Synthetic Asset But the assets that can be picked on the Synthetix platform It has been screened by the project party Since the Synthetix project is based on Ethereum So allow its platform to use smart contracts to issue different ERC-20 tokens Behind each designated token Are actually tracking the price of a real asset The token can represent a traditional investment product Such as commodity gold or silver Foreign exchange currency US dollar or Euro US stocks Tesla or Apple Or the emerging cryptocurrency Bitcoin or Ethereum These tokens are tracking real asset prices All belong to Synthetic Asset All generated synthetic biologics can be traded on Synthetix exchange I have just briefly explained the Synthetix project.
You can imagine that Synthetix’s vision is very ambitious Their platform is an asset that can be valuable and marketable in reality Use the issued tokens to trade on Synthetix And everyone can trade different types of assets on one exchange The goals of the Synthetix project seem wild But Synthetix is gradually realizing Everyone got acquainted with the Synthetix project In fact, the Synthetix project also issued its own token SNX The full name is Synthetix Network Token The initial total supply is 100 million pieces The original supply of 100 million pieces is fixed But in March of this year, the Synthetix team updated the token policy SNX token will be changed to a token that will continue to inflate and increase the total supply What is the role of SNX tokens? Simply put, SNX is to generate the collateral behind all synthetic biologics on Synthetix So everyone can think of The market value of SNX tokens In fact, it will directly affect the scale of synthetic biologics Regarding the pattern of how to generate synthetic biologics just mentioned Do you feel that it is similar to the other project MakerDao introduced by the editor earlier A little familiar I don’t know if you still remember the Dai generated by the MakerDao system.
Dai requires users to use over-collateralization Staking Ethereum or Bat tokens into the MakerDao contract Dai can be generated afterwards First explain what overcollateralization is Using the MakerDao project as an example, if the user wants to generate Dai In fact, it is equivalent to borrowing Dai from the MakerDao system Under the over-collateralization regulations The borrower needs to deposit more assets than you borrowed Loan can only be done after mortgage And in the Synthetix project They also used over-collateralization in their projects But their projects currently only accept SNX tokens as collateral for borrowing As long as users over-collateralize SNX tokens through Mintr's platform Generate a synthetic biologic sUSD representing the U.S. dollar sUSD is also a U.S. dollar stablecoin Another is that users can generate sUSD Exchange for other types of synthetic biologics through the Synthetix exchange For example, the sXAG token representing gold Or in the future, sAPPL, which represents APPLE, will be added So the Dai generated on MakerDao And synthetic bio-products generated on Synthetix Actually both have one thing in common That is, the value of both is supported by the collateral accepted by the system The value behind Dai is currently supported by Ethereum or Bat tokens And the value of all synthetic bio-products issued on Synthetix Is to use the self-issued token SNX to support You may have questions after hearing this SNX token is just a token newly issued by the Defi project and launched on the market Should not be known to most people Under normal circumstances, who would be willing to choose to buy the tokens issued by them Also use SNX tokens as collateral Borrow and lend on the Synthetix system (generate sUSD) In order to solve the question just mentioned Questions about the willingness of users to use SNX tokens in the early stages of the project Synthetix has designed two kinds of rewards To lenders who pledge SNX on the Synthetix system to generate sUSD or other synthetic bio-products For the two kinds of rewards, Synthetix will be every Wednesday at 4pm Hong Kong time Take a snapshot of all borrowers’ accounts Then, rewards will be distributed to the borrower accounts of the combined assets To incentivize more people willing to use and mortgage SNX tokens Next, the editor will explain the two kinds of rewards The first reward is every transaction made on Synthetix For example, a certain user wants to exchange sUSD into sBTC Each transaction will incur a 0.3% fee Synthetix will issue bonds according to the amount of mortgages in its system every week That is to generate the value of the synthetic biological product (the value of the loan).
As a percentage of the total debt issued by the Synthetix system at the time Distribute rewards of transaction fees to various issuers And the rewards received will be sUSD tokens And the second reward is in March of this year Simultaneous implementation of the conversion of the fixed supply of SNX tokens into inflationary tokens This reward is called a lock-up reward They want to convert SNX tokens to inflationary Reward the newly added tokens Distributed to Synthetix system The issuer who mortgages SNX tokens to generate synthetic bio-products The chart on the screen is the token inflation policy implemented in March this year It can be seen on the chart that in the next five years Will increase the supply of tokens to approximately 250 million You can also see that the inflation rate in the first year was very high at 75% After that, the data dropped sharply from the second year But this policy has been carried out until December Their project team is worried that the inflation rate in the first year is too high.
In the second year, the inflation rate fell rapidly This kind of inflation has the opportunity to bring unpredictable consequences to their projects For example, in the second year, the inflation rate in the first year was set too high Will cause many new tokens to appear in the circulation market in the second year This has the opportunity to put huge pressure on the market to sell SNX So they renewed their token inflation policy agreement at the beginning of December The week from December 11 is the 40th week of the implementation of the inflation policy (a 14-week slip of the tongue is wrong) The inflation rate will be changed to a weekly decrease of 1.25% When it's the 235th week I.e. after September 6, 2023 The inflation rate will remain at 2.5% forever In other words, under the latest inflation token policy Inflation rate will decline more orderly and decline downward And the holders of the lock-up SNX token issuance Under this policy, you will be able to enjoy lock-up rewards forever There are still some things I need to add to you about the lock-up rewards.
In order to avoid the rapid and massive outflow of new tokens from the market A situation that may cause a lot of selling Affect the price stability of its tokens SNX tokens obtained from lock-up rewards need to wait one year before they can be officially redeemed Although this part of SNX tokens cannot be transferred or sold But will be calculated on the balance of the Synthetix system Means to get SNX tokens due to lock-up rewards Users can re-collateralize new SNX tokens to issue more debts That is to generate more sUSD Compound interest in exchange for more rewards every week in the future Regarding the two rewards mentioned by the editor just now If you want to obtain a synthetic bio-product in addition to the required mortgage of SNX tokens to become a debt issuer Users also need to maintain the mortgage ratio at 750% or above If you generate 100 sUSD through the Mintr platform You need to take a snapshot every Wednesday Keep the mortgage ratio at 750% or above Use the previous example The value of mortgage SNX tokens must be maintained at 750 USD or above Otherwise, you will lose the reward for that week However, when the mortgage rate is insufficient on the Synthetix system The situation is different from the usual lending platform Use the MakerDao project as an example If the user has insufficient mortgage rate The user’s collateral will be liquidated and fined But there will be no liquidation and fines on the Synthetix system Purely will collateral SNX tokens Locked on Synthetix system cannot be redeemed Until the mortgage rate returns to a healthy state, it is 750% or above You can redeem your collateral There are two ways to restore the mortgage rate to a healthy state The first method is to reduce your debt Users can repay sUSD That is to burn the Burn operation on the Mintr platform Or the second method to buy more SNX tokens In Synthetix, borrowers must maintain an ultra-high mortgage ratio of 750% The purpose is actually to protect the entire Synthetix system The reason is just mentioned SNX tokens are only tokens issued by its project The volatility of currency prices may be very large Although the project has been noisy in the market recently The price of SNX tokens continues to hit new highs Those who have pledged SNX to issue bonds can be more likely to appreciate the value of SNX tokens Increase the scale of its bond issuance Increase the scale and transaction volume of synthetic bio-products But if the price of SNX token drops sharply The price of SNX currency will directly affect the mortgage ratio of the issuer As a result, some users are forced to repay the debt Decrease the scale and transaction volume of synthetic bio-products Therefore, the price of SNX directly affects the ecology of Synthetix Probably explained the role of SNX tokens.
Next is an introduction to the Synthetix exchange. The biggest feature of Synthetix exchange design is Unlike traditional exchanges, a counterparty must exist to complete a transaction Trade on the Synthetix exchange In fact, users just trade with the smart contracts behind each token Suppose you use sUSD in the exchange Exchange sBTC to Bitcoin The relevant sUSD amount in your wallet will be destroyed Since sUSD has been destroyed, its total supply will also be updated in real time The smart contract on the other side will automatically issue a new token, sBTC At the same time, the system will send sBTC tokens to your wallet And update the latest total supply of sBTC in real time The counterparties of trading users in the entire exchange will only be smart contracts Method of generating tokens by burning and This solves the problem that traditional exchanges will worry about insufficient liquidity This method also creates unlimited liquidity for its exchange Another feature of Synthetix Exchange is As explained earlier, all Synthetix is generated on Synthetix Does not mean that you have real assets Purely just use smart contracts to pass agreements Issue a token that tracks the price of a real asset Mode in Synthetix Let everyone directly do not need to own the relevant real assets Different types of assets can be exchanged directly through their exchange For example, sXAG, which represents the price of gold, can be exchanged directly with sBTC, which represents the price of Bitcoin.
Or I can use the synthetic bio-products that will be added in the future to represent the tokens of the US stock Tesla Exchange directly with sETH representing Ether The biggest advantage of this mode is that users only need to use one platform in the future To complete the direct exchange between different types of assets Take everyone to visit the exchange of their project At the beginning, log in to its website and connect to your Ethereum wallet system. The basic mode will be automatically preset. Basic Mode display If you want to switch to the dedicated version, you can press Pro Mode The professional version of Pro Mode will display more historical price trends of each trading pair And the selected transaction pair is exchanged for the current price of other synthetic products If you do not own SNX tokens And you want to use Synthetix Exchange to trade synthetic products You can use Uniswap's exchange to directly exchange ERC-20 tokens or Ethereum into sUSD Or exchange sUSD tokens on the Kucoin exchange After completion, you can exchange sUSD for synthetic biologics represented by other assets in the Synthetix exchange.
Synthetix exchange currently supports trading synthetic products Including more than ten cryptocurrencies The first English word of the token name starts with i i means inverse That is, you can buy this type of token if you want to reverse short-sell an asset There is also gold or silver Currency or index type of foreign exchange, etc. In the future, their projects will also add more types of synthetic bio-products for everyone to trade Regarding whether SNX tokens are currently a good time to invest We can initially understand the current circulation and transaction volume of SNX tokens The display on the screen is Synthetix's Dashboard Here we can see the currently issued SNX tokens Almost 80% of the issued tokens are collateralized on the Synthetix system Regarding the transaction volume of SNX tokens Mainly concentrated on Kucoin Exchange and Kyber Network However, based on the 24-hour transaction volume data as a reference, the daily transaction volume of SNX tokens is not much In addition, the editor also noticed that the Kucoin exchange SNX token and Bitcoin USDT or Ethereum trading pair The trading depth of the three trading pairs is not high Refer to the latest token price of SNX displayed on Coinmarketcap From the lowest position of the currency price until now, it has soared forty times But in fact, the actual trading volume behind the daily increase in support is not too much Coupled with the problem of insufficient transaction depth If someone sells a lot of SNX tokens in the secondary market The price of SNX may drop significantly Therefore, under the current situation that the currency price has risen forty times At this stage, the risk of investing in SNX tokens is not small The Synthetix project is currently only in the early stages No one knows whether it will succeed in the future However, there is a large sale and the chance of a sharp drop in SNX tokens The editor thinks that you can consider making a small investment and then holding it for a long time Because Synthetix has huge development potential But the above is just my personal opinion It is not an investment suggestion, please do your own homework before deciding to invest There are quite a lot of introductions about Synthetix in this episode Although I failed to introduce everything in Synthetix one by one But I believe you who watched the introduction of this episode Will basically understand what Synthetix’s project is about If the editor has free time Or the audience asks questions It’s about the actual operation on the Synthetix system At that time, the editor will shoot a demonstration video to share with you If you like the video content of this episode Remember to subscribe to the editor’s channel and like this episode’s video Give more support and encouragement Of course, you are very welcome to share my video with friends around you Enabling more people to understand the field of cryptocurrency Finally, please remember to click on Tinker Bell next to the subscribe button Turn on notifications for videos When the editor launches a new video, I will be notified to ensure that I will not miss it See you guys in the next episode ByeBye