Good morning everyone, I hope all is well Today we're going to talk about Synthetix Network
and its token, SNX A highly requested video, but quite intricate which could be the reason of such demand The main characteristic of Synthetix Network is that
it's one of the few Decentralized Finance projects subject you're probably hearing about more and more Complexity is always the same, I often consider it as a barriers,
just like in life actually! Everytime it becomes complex and people encounter a barriers,
there's two kinds of behaviors: a lot turn around, but some try to go on the other side But since you are watching a video on a channel talking about
cryptocurrencies and Decentralized Finance I think you already jumped a few barriers yourself by doing
research to understand things which you might have considered at first quite complex just like when we discover cryptocurrencies for the first time Decentralized Finance is pretty much the same,
by mixes concepts of Finance with Blockchain and Decentralization Resulting in a pretty technical language which can be pretty scary,
but if we take the time to explain step by step thoroughly, it will become way clearer Although I chose to talk about SNX,
which is one of the biggest Decentralized Finance project I won't solely be focusing on that particular project it will also be to show you the potential and depth of Decentralized Finance Synthetix Network is the application and clear demonstration of
Decentralized Finance power my goal is not to only show you the racing car that SNX became.
It's also to show you the power of its engine, and everything you
could potentially do with Decentralized Finance By demonstrating how it works, but also how it operates internally to give you ideas
and understand the potential of, in my own opinion, the future of finance or at the very least a part of it. If you just started dabbling into cryptocurrencies and you just arrived
on my channel, I think it's the first time I will say this but I encourage you to look at
a beginner tutorial or another video You don't need a lot of knowledge to understand this video
but if you never bought some Bitcoin, or if you don't know what a cryptocurrency exchange is, I have to say that you might be a little too precocious on this subject,
I invite you to look around, do your research and come back later.
This video is quite complex and thus quite lengthy
since I don't want to only describe what is SNX but also how it operates which will require me to expand some of my explanations you will find in the video description timestamps to jump at the different
chapters of the video if you desire to watch them separately Now let's get to business: I'll tell you what SNX does then we'll look over how this decentralized network operates
with all its financial mechanisms, and then we'll do a little demonstration. We'll go from theory to practice in order to perfect our understanding, since I think there's not a better exercise than to try to apply what we just explained. If I had to describe it in a single word, Synthetix Network is a network
which will enable you to exchange and trade on different pairs cryptocurrencies, long bets and short bets but also commodities, like gold, silver, oil in the near future
and potentially other values also the stock exchange, which just started with them adding pairs
for the Tokyo and London exchanges so you can directly from your wallet without any intermediary,
any bank or broker, trade the London stock exchange for example
directly from Synthetix exchange but also Forex, meaning currencies like the Euro, the Dollar, the Yen..
And every time in the two directions, long or short.
This is the utility of SNX It's why it was made and the utility it will have. There is multiple advantages like for example for traders,
no liquidity issues you can sell any crazy amount of cryptocurrency
without making its price fluctuate and this you will understand when I'll tell you how Synthetix Network functions,
which is what's really incredible about it and in addition to this utility we have a platform that permits all of this to work a platform of staking to lock your SNX, the token of this project,
in order to receive interest which is currently around 50% per year, do not that more people on the network
will result in a decrease of the interest rate in the future but when you stake your SNX to receive interest there is another mechanism that will initiate.
A complex one since its purpose is to stabilize the whole Synthetix Network, allow the exchange to operate, redistribute the fees generated by the exchange to the stakers Since as you know when it's a decentralized network, it needs to function in an autonomous fashion, meaning it's the network users which will maintain the its stability Just like for cryptocurrencies miners, who are individuals,
will secure transactions of people like you and I it will be the stakers, and the minters (we'll go through that) of SNX,
which can be common individuals who will stabilize the network and allow all these exchanges to traders,
who can also be like you and I and this is what's interesting and which we will present you before going to theory and demonstration,
you have to understand that Synthetix Network represents currently three platforms: The first is Mintr (mintr.synthetix.io),
it's on this platform that people come to stake and mint their SNX to get rewards and where the first synthetic have been created (we'll go through that in a bit) the second platform is exchange.synthetix.io it's where people will exchange their different synthetic to go from a synthetic Bitcoin to a synthetic Ether to a synthetic London exchange for example to a short of a synthetic Euro
(meaning when the Euro goes down it goes up and when the Euro goes up it goes down) and finally the third platform: dashboard.synthetix.io, which like its name indicates is only an overview to show how many tokens are on the network, if everything is looking fine, who is long, who is short: who bet on a currency going up or down.
In order for you to observe the network, since it's a blockchain it's a bit like the explorer of Synthetix network We'll go through step by step, the two complex parts being Mintr,
the staking tool: how it works and its particularities and then the exchange, and to answer the question why there is no volume,
why if I sell a huge amount at once I won't crash the Bitcoin price This is what I'll explain right now Let's start by showing you the token, what it looks like Today 0.64€, coming from pretty far, it started in mid 2018, peaked at 0.64€ bottomed out at 0.03€, and it's when the activity picked up again
and really developed in May 2019 and developed their solutions, like the launch of the platforms
that the token gained value and peaked from memory at 1.40€ Right now it's going down a little, after this peak there is a normal stabilization period
and we're starting to see interesting volumes for a while there was 10k-20k-30k € of SNX that was exchanged per day but today we're between of 1 and 2 millions € of daily minimum volume with occasional peaks The network is now very liquid, it's a pretty well-known token although it had struggles at first and that's being traded on a lot of exchanges.
You will see there is a lot of solutions to generate SNX, or at least some Synthetix token
which are not quite the same, we'll go through this in a bit. For now however I buy them quite often on Kucoin,
but you can also get them on Poloniex or Coinex and some decentralized exchange. We'll now focus on the first platform: Mintr. I'll explain everything and now we'll clear up the couple complex subjects which in 5 minutes won't be anymore. First, the collateralization ratio which is a term you will hear a lot in Decentralized Finance, we have to explain it and why it's important for it to be stable, then I'll explain what is it to have SNX and how to stake/mint them, meaning how to lock them to get interest, and to unlock them if you want to get them back And the couple things that you need to look out for.
We'll go through the theoretical part first Mintr, how it works: you need to view the staking and minting as a chest where you're going to put SNX in order to get rewards. It's the first mechanism, deposit SNX to get rewards. Imagine you connect to the Mintr platform, you take your SNX and you put them in this chest. It's the very first step, the action of connecting, clicking on "Stake my tokens".
In reality it's the step that matches precisely to create Synthetix USD by staking SNX using this button That is why I'm doing a drawing, it's because it's going to initiate a couple of things. This mechanism: stakers that come to lock their SNX is crucial since it's the initial base of this decentralized ecosystem.
Once you staked your SNX, locked them in this chest which is a smart contract, multiple things will activate at once. The first thing to know are rewards, the first thing to know you are entitled to rewards since you locked up SNX. Currently, the ROI of stacking, meaning the rewards you get while staking are 50% per year. It can change however since the more people using the network the least this value will be,
but currently we are at 50% per year.
Which is approximately 1% per week, it's important to know that since you will get rewards every week, every Wednesday night (CEST) that you can come get your rewards And it's also important to know this since
you have to get come get your rewards Wednesday night or at least in the same week, because the next week when you're going to generate 1% of rewards, if you didn't come to get your first week rewards this reward will be considered relinquished and the new reward will erase the previous one, which will be redistributed to all the others in the network.
So make sure to get them every week. What you need to understand is that it's important to get them every week,
but also that there's not only these 50% there is a second reward you're entitled to, bonuses coming from fees of the exchange. I didn't show you the Synthetix exchange yet, but when people come to make exchanges it generate fees, just like any other exchange platform on the planet. But since it is decentralized, these fees do not fall in the pocked of just one company it's fees that are distributed to people who secure the network, specifically to people who staked SNX in the contract and maintain the network by staking and minting SNX.
I won't lie the 50% of rewards are way more important than the exchange bonus, But at the end of the year it can be a relatively good amount,
and the interesting thing is it's paid in Synthethic Dollar (sUSD) it's a bonus that's part of the reward,
we don't really talk about it since it's small but it starts to make sense in the other mechanisms which are going to be activated once this chest is closed and once you locked your SNX The second important thing to understand which is the most complex, now you know what you have to gain, every week you will get part of your rewards, 1% per week, plus one bonus in sUSD The sUSD has dollar parity meaning 1 sUSD = 1 USD,
same goes for all other Synthetic assets, 1 sBTC = 1 BTC etc The second mechanism will be the minting one staking is one thing, on SNX is quite peculiar since when you do that you initiate the mechanism of SNX creation.
Meaning every time you lock $100, it will create a debt and it will create a stock the debt might sound weird since we know about the debt we owe to someone, it's a little more complex than that. In reality you're going to take a responsibility on the network. just like when you obtain SNX tokens, you will be responsible of this debt. There is a collateralization ratio, it's been three times I said this word but it's here and now you need to understand It's nice that this chest is closed when you put SNX in it and obtain rewards, but you might ask, if this chest closes, how do I reopen it?
The answer is that you're going to have to get a collateralization ratio of 800% And this is what we're going to explain now.
It's pretty important and this notion needs to be understood for Decentralized Finance in general The most important thing is to get this 800% collateralization ratio and once it's done you can reopen your chest, take your SNX and exchange them anywhere you please.
Sell them, or exchange them for other values. What you need to understand in this second part when you lock the chest is that it creates you a debt and a stock in SNX and this is where they appear for the first time the Synthetic token and this network at that point it will give you two things, the first is a stock which is of 100 USD, since that's what you just locked you're going to get one stock, sUSD that will be given to you (stablecoin) which are going to be 12.5 sUSD And those who are good at math will understand that if you do 12.5 x 8 it's going to be 100.
Meaning when you put 100 dollars worth of SNX in the box It will generate you 1/8, meaning 12.5 sUSD and at the same time, since you lock SNX and it gives you 12.5% in dollar,
it's going to create a debt and this debt will be -12.5 dollars And this is quite peculiar because it's as if you go to make a transaction
and your bank would say (there is no interest on this debt) but it would say the day when you create your account we give you 1000 euros in cash,
you do whatever you want with it but you owe us 1000 euros without any interest.
And what I advice most beginners is not to touch it it will give you sUSD, and an associated debt which matches the amount it gave to you the two are in equilibrium, when you are in this scenario, this is where the collateral ratio applies when you have a debt that's 8 times smaller than the amount of SNX that you locked your ratio is good. If SNX gains in value,
imagine during the night it takes a 10% increase meaning you will get $110 worth of SNX your collateral ratio will be positive, which is even better since you will get 900/800
because you still have $12.5 of debt, but your SNX $ value will be higher but if SNX loses values, you won't have $100 anymore but $90 and there your collateral ratio will tell you careful there is an issue,
you're not at 800/800, you are at 700/800 and here you won't be able to get back your SNX without having to do something first Just as a reminder, everything I'm explaining here we'll go through
a practice later to make it even clearer The most important thing to understand is the collateral ratio, now I only ask you to understand how it works, but when we'll be on the exchange Synthetic I'll explain why it's important to have one Now that you understand the mechanism, to open the chest and get your tokens,
you need to have a debt 8 times smaller than the amount you have, the SNX can move typically you're going to tell me if the collateral ratio is not good you just need to reduce your debt, which you can imagine if the SNX loses value during the night,
so we go to 90$ of value and 700/800 of collateral ratio I can't get my SNX, but you still have you sUSD so with $2.5 I repay part of my debt here,
I go to $10 which I have, my debt goes to 10 sUSD
and my collateral ratio without having to spend any money went back to a good state.
You need to keep in mind you can't spend these sUSD without thinking since they give you a debt but also the means to reduce it or make it disappear But there's also one thing to know.
There, and that's the last complex part of stacking, there I told you we had a bonus in sUSD when there is fees generated by the platform, you get one bonus and every week sUSD that will be given to you Meaning this is something that will increase your sUSD amount without increasing your debt You need to know it can also arrive to the debt, which you're going to see here where I read you exactly what they say: "Your debt is initialized depending on the amount of sUSD you created … " Just like I explained it creates a stock and a debt " …
It fluctuates based on the gains and losses of the other Synthetic token (Synths)" Every time someone holds Synths (for example sBTC, sETH, etc), any synthetic token Every time someone holds a Synth that gains value, this gain will be redistributed proportionally among all the debts of staked SNX And now you will understand why, just as a reminder the most important thing for the network is to have a debt 8 times smaller than the locked SNX It's how we stabilize the network.
And then I'll give you some give you some examples, like the collateralization ratio of Tether or DAI, a lot of projects use it. And now this is what you need to understand, when there is people who gain money in Synthetic, the amount of Synthetic on the platform increases and the most important is to realize this Synthetic needs to be backed by 8 times more of locked cryptocurrency, and naturally it will make this debt fluctuate. From experience after 6 months, the good news is the bonus is never that big, And globally the debt fluctuation can go up but also down, you can wake up and realize that one day you only owe $10 instead of $12.5 The bonus you get every week and the debt variation is quite insignificant At first when I didn't fully understand I feared that one day I would wake up and owe $10,000,
and would never be able to get my SNX back It's just not how it goes, in reality the biggest variation I saw was 2 or 3% on the week and it can represent a good amount, but generally I was always able to pay my debt fluctuation (when it goes in the wrong way) with my sUSD bonuses So for beginners, I would simply advice to keep the amount that they give you to pay your debt.
Little thing to know: you have rewards every week, when you come to get them they're yours but are on lock for a year simply put if you come January 1st 2020, I will claim my rewards, I put $100 so I have $1 of reward, it is mine, $1 worth of SNX, but for one year it is locked. It will be automatically unlocked and arrive in my Ethereum wallet without having to be locked in my chest, it will be automatically available 365 days later, Meaning January 1st 2021 That's what you need to understand. And by getting your weekly rewards, you are initiating the process that will get you new tokens a year later And since I give you a simple example, and that's why in the Mintr presentation you're going to see I have locked tokens, it's because you're going to see when you arrive there You see I staked tokens, I got my rewards on January 20th, I had 10 SNX of rewards I will get them January 20th 2021, and because I do this every week since, you can see that every week starting from this data I'll get rewards in SNX The little thing to know is that these SNX are still waiting to be unlocked to arrive on my wallet, but you could stake them in order to get compound interests If we go back to this drawing, and now that you understood the full process,
meaning the two weekly rewards Interest and exchange bonuses, but also the collateralization ratio to get a stable system now that you understood that you need 8 times more in the chest that you have as a debt, we can now do some practice! After the theory, we can finally apply what we learned with practice.
I did that much theory because that's what I lacked when I first tried the platform I spent time on it, I learned bit by bit and ended up understand everything that I would have liked for someone to explain to me with a small drawing so I made it simple, I wanted to lay everything down so you can understand it and now put it to practice. So lets go to Mintr (mintr.synthetix.io) You can connect, I usually use either Ledger or Metamask, there as a reminder if you don't have MetaMask it's an
extension you can install on Chrome or Brave Here I put on this account 1000 SNX and a little bit of Ether, 1.21ETH So we can, since we need Ether for the simple reason
it will be used to pay fees since it is decentralized, every time we make an action, send, claim rewards, mint SNX, etc..
Every time it is a transaction on the Ethereum blockchain, so you need to be able to pay these fees. Just put a little bit, usually I do 0.1, but today I put a little more since we're going to go on the exchange and I'll how you that you can generate sUSD by staking and minting these SNX but you can also exchange your ETH to trade, since you're not obligated to go through Mintr in order to use the Synthetix exchange I wanted to show you in practice we have a collateral of 0/800 because we have some SNX because they're not locked Meaning currently we just have them in our wallet.
But now we are going to mint them, So we are going to stake them, generating the debt and the sUSD, lets get this done Again, the button to stake is the create button,
so the first time you get there if nobody told you this, it's a little hard to understand Once we arrive there, I set the maximum, we mint,
it shows the transaction fees (here 53 cents) you also need to understand this, since it's useless to mint 50 SNX
because you would have to pay the ETH fees every time once ETH 2.0 will go through, fees will be drastically reduced,
but again these are the fees of Ethereum induced by the miners you can modify and lower to the minimum, usually I do it but for the video I want it to be fast I'll put 70 cents of fees, so we don't need to wait, I confirm the transaction It's an Ethereum transaction, if you click on See it will redirect you to Etherscan and you'll see you just generated a transaction on the Ethereum blockchain.
Which is going to take around 5 minutes the minting will be finished, the 80 sUSD will appear there, and the 80 cents of debt that goes with it While waiting the transaction to go through and mint these SNX,
I'll present you the other buttons The destroy button is to destroy part or all your sUSD to pay your debt, like you know it's an equilibrium to maintain
and there this button is to use the stock to diminish or regulate the debt The claim button is the one to use every Wednesday night (CEST) It's where to click on to claim the rewards (in this case I have 4 days to claim them) and since it's a new address I didn't have any SNX last week so next Wednesday is in 4 days so if I didn't retrieve my rewards previously (please be careful of that),
you would have only 4 days to claim them if there is new rewards generated without claiming the previous one,
it will redistribute them to all other minters of the network too bad for you but good for people who have been rigorous about claiming You will understand the objective is to equilibrate the ratio of 800% as often as possible to stabilize the network, I'll talk more about it once we are on the exchange Now you're going to get SNX, 1% per week, (ah the transaction got confirmed)
based on the amount of staked SNX, here I put 1000 1% is going to be approximately 10 SNX next week,
and this is the bonus that varies depending on the volume of the exchange I refresh and now my ratio is 800%, since it used the right amounts,
and if you look there you can see my debt is at $79.61 And the value of my SNX equates to $640,
if you do the debt times 8 you get to that same amount And this is the most important part, this is what's going to colletarize, back and certify that
every time there is 1 sUSD, 1 sBTC, 1 sETH etc, every time there is $1 worth of Synthetic token, you have 8 times more
of locked cryptocurrency than of circulating Synthetic tokens This is what's going to secure the network.
We talked about stablecoins, USDT that does it job by putting as much on chain than they have in bank.
But now it's you, network users, that will ensure there is a 800% collateralization ratio And this is what's cool, since that's what makes it so on the SNX dashboard (the second platform) Here we see the total Synthetic supply
representing all Synthetic tokens is worth $14M and if you take this amount times 8 14,744,211 x 8 = ~$120M
And if you look at the SNX market cap you get that same amount The system is working backed correctly thanks to all the people who come to regulate often their collateralization ratio. One little thing, to retrieve your rewards you need to be at 800%,
or more meaning you will have a positive ratio, your debt can also go down if you add SNX that you won't lock,
you will have more SNX than debt so you will be above 800% you will be able to get your rewards but (and it happens), the debt can slightly increase or the value of SNX can go down, meaning that one day you can connect and you would be at 750/800,
but you would not be able to as it will be marked closed.
It's something very important. If you see closed it just means you need to regulate your ratio. At that point, you just go to home and click destroy, and because you would have kept your sUSD and you can click on restore collateralization ratio.
Here it just shows 0 since I have a perfect ratio, Destroy maximum is to destroy all the sUSD you have to refund all your debt
and withdraw your SNX, meaning opening the chest and withdraw your SNX to sell them for example, but you can also simply re-equilibrate the collateralization ratio and at that point, if burning 6 tokens (since 6×8 to get the dollar amount),
to put your collateralization ratio to 800%, you can go to claim my rewards and get your SNX that will add themselves to the locked amount like I said previously, these SNX will be yours,
you will be able to restake them but will only be able to withdraw them a year later There we go for this platform that looks pretty complex, but in reality you're not only learning to understand how a platform of staking works, It's a platform of stabilization and equalization of a financial network,
and that's why it's that complex every button, every ratio, every equilibrium is used to stabilize the integrity of Synthetix network.
And like most of decentralized networks, there is such mechanisms. Just like when you want to lend your DAI, which is a stablecoin to get interest, There is people who borrow them and who need to put
8 times more in smart contracts on the Ethereum blockchain It's part of Decentralized finance, basically you're doing part of the bank work.
And here either SNX gained in value, or my debt went down a little, so I think my ratio should be slightly above 800 although it's too small to display. Now that you understand how collateralization ratio works,
we have sUSD I won't touch them in order to pay my debt It's important, I want to be able to withdraw my 1,000 SNX anytime,
but I could have went on the Synthetix exchange Here, let's open it actually I connect, with MetaMask which is my wallet, and now I could have went to trade For example, I have sUSD, I want sETH I could go and spend my 80 sUSD, I don't want to show you bad practice and instead exchange my own ETH against sUSD so I don't have to spent these 80 sUSD
that I want to keep in order to pay back my debt anytime.
Let's show you something, I think you know where to buy ETH already, But I'll show you that in this decentralized ecosystem You can go on uniswap.org Uniswap is a website that allows you to connect your MetaMask or your Ledger and to exchange some cryptocurrencies,
like to change 1 ETH to sUSD since I want to use the Synthetix exchange It will give you a rate, which you can check to see if it's valid, and then you would click on swap And it's going to make an exchange on chain with someone
who wants to exchange his sUSD for your ETH It generates a transaction on the Ethereum blockchain, and once it will be confirmed, I'll exchanged 1 ETH for 190 sUSD, I wait for this transaction but this as you can see it is really decentralized as it will be processed by a miner of Ethereum using graphic cards which will allow me to do this exchange without any bank, without any platform, or company a simple smart contract on chain that's called Uniswap.
It's confirmed, I can close all this,
I go to the exchange where my balance should have updated I have more sUSD, and here I want to make you understand a little thing.
If you look at this Synths line I had my ETH here, I had 1.21 now I only have 0.21 since I exchanged it for sUSD I had my $80 debt, I have my 1,000 locked SNX, but if you look at this Synth line What is that? You need to understand you can send it, it's not a token that belongs to you, but if you look in your wallet you're going to see it Why is that? For the simple reason is that it's the amount of your Synthetic Imagine if I have my $271, I got to buy some sETH, sBTC, sGBP,
no matter which Synthetic asset If I still have $271 Synths, you will see this amount there You have to view this line as the total amount of your assets. Here I'm going to something to explain Imagine now, yes I'm going to be using a drawing again You understood it, I have an amount, let's say 200 sUSD,
I'm going to go on the platform, the Synthetix exchange, so we imagine the sBTC, we imagine the inverted Bitcoin (iBTC) To explain when we buy sBTC if it goes up we gain, but with iBTC we gain when the Bitcoin goes down in value but we lose when it goes up We imagine let's say one day there will be the sTESLA,
so let's say the sXAG which is money So now you need to understand you have 200 sUSD, your balance will be 200 Synth That's the most important thing to understand.
But if I use my 200 suSD I buy let's say $100 worth of sBTC, $50 worth of sTESLA (that doesn't exist), and $50 of sXAG representing silver,
and soon we're even gonna get the petrol, the crude oil on the platform and on this line I'll still have my balance showing 200 Synths, which is very important I'm going to show you the exchange platform,
which functions like a traditional platform but there's one thing to understand. On Synthetix network when you go on the exchange there is an infinite liquidity You know that, if you want to buy 100,000€ worth of Bitcoin
the first one you will pay at market price, but the last one you might pay slightly higher,
since when you want to buy huge quantities the more you need to find sellers, and when there's no sellers the only way to find them is to increase your buy price. 100,000€ of Bitcoin is fine, it's a big amount but for Bitcoin that's pretty liquid it's fine But try to buy 5M€ or 10 M€ worth of Ether,
either you go through a company that gives them to you instantly, or you go on Binance, the first ETH you pay $200 but the last one you might pay $210 for example and this is important to understand because here it's not possible.
If you have sBTC and you want to convert it to sXAG, In reality there is no peer-to-peer exchange,
if I change now $100 worth of sBTC to $100 worth of sTESLA, there is nobody who sold me $100 sTESLA against $100 of sBTC,
which is very important to understand It's my Synthetic Bitcoin which got renamed I had $100 of Synthetic, but before you were sBTC I'd like you to be renamed sTESLA, it's the same token that transformed. So be careful because it still changes something, now that it became sTESLA if TESLA gains value, imagine I had $150 and the company stock goes up 10% Let's say 150 sTESLA is 0.3 stocks on the real stock exchange But these 0.3 stocks that used to be worth $150 Synth, now will gain 10%
and thus $165 Synth because the value went up. If I want to rename them, and that's what you need to understand it's not an exchange,
you only transform them imagine my 165 Synth are on sTESLA and I think it will go down,
I can rename it and put it on sXAG, but I will still have my 165 Synth But it will be on sXAG, that's why we say there is infinite liquidity,
you can sell 1 million of euro at once we won't make the price move because we won't buy them from someone but modify our 1M Synth, sUSD, sBTC etc, into another Synthetic asset, simply transform it.
That's what's important to understand. And at the same time, there is a zero slippage,
meaning there is no slippage between the price displayed and the one you get This might be only relevant to real traders but what you need to understand is that, when you want to buy one Bitcoin and the advertised price is 6,000€,
once you click on confirm, You probably won't get it at exactly 6000€, as it will move a little You might get it at 6,000.2€ or 5,999.97€ On Synthetix network at the moment you confirm the transaction
you will get the exact price that was displayed because there is no slippage Now I'll show you how to do an exchange,
by looking let's see FTSE which I think is London, FTSE 100 represents the top 100 companies of the United Kingdom,
FTSE is an indicator of the London exchange and I hope one day we will get the CAC40 and all the other stock exchanges There is also gold (sXAU), silver (sXAG),
I know oil is coming since that's the third commodity that will be added There is many cryptocurrencies or at least the biggest, LTC, Tezos, ETH, BTC, LINK And you have the inverted, like for example iETH is the reverse of ETH, iBTC is the reverse of BTC so when one moves up the other goes down so it allows you to short it And there you have currencies, like sGDP (Pound), sAUD (Australian Dollar) the sEUR (Euro) many currencies you will find on Forex So me I won't go for cryptocurrencies we're going to do something a little more special.
Ah we also have some indicators like the sDEFI it's a median of the different cryptocurrencies of Decentralized Finance. So yes there is some indicators, I think on the home page they explain it
But since I am connected it doesn't show On the homepage of Synthetix they will explain the ecosystem concept,
and where they specify they support cryptos, commodities, Forex, indexes and reverses of these So now I will bet on silver, I have sUSD 271 but 80 that I shouldn't spend,
I'm going to spend 100 of sUSD against sXAG I confirm my transaction, it's completely decentralized, 18 cents of fees,
I'll put 21 so it goes a bit faster, And there the transaction is pending and it's exactly
the amount that was displayed to me without any difference. Okay maybe my volume is small and the difference would be marginal
but it would work the same if you trade big amounts Now that I did my exchange and I'm awaiting my confirmation I'll do another bet.. Let's take a bit of the London exchange (sFTSE),
I'm going to use 90 sUSD in order to keep my 90 sUSD Ah but the market is closed so you cannot exchange..
Synthetix exchanges allows to invest on the exchange, but since it's the real exchange because it's the weekend, you cannot trade on it, but that's normal since the market is closed.
I presume it is the same for Japan since it's the weekend. So you will have to wait, gold market never closes however it's 24/7. I'm curious to check, let's see opening times…
Opening times London stock exchange FTSE FTSE is from 9AM to 5PM Monday to Friday,
so I won't be able to show you how to buy FTSE during the weekend That's quite interesting, to get particularities of what you're going to buy,
so let's say to buy sGDP, ah it's closed too I thought Forex was running on the weekend So let's use the reverse of one crypto, DEFI is one median of Decentralized Finance they created, it seems it is gaining in value, it's something I really like Let's check this a month the value of most.. Ok.. Since 28th of March I didn't realize how much Decentralized Finance keeps going up So since I'm doing a video about it let's bet a little on that it's the least I can do,
We're going to buy one index Don't hesitate to research on the index you plan on buying, see the informations, and look at what the median represents, I presume SNX is part of this median,
I confirm my trade.. I have my blockchain fees, $0.16 of fees,
and every time you do a transaction know that there is exchange fees, so here for example 0.3% of fees for Synthetix exchange and gas fees.
Know that there $0.27 do not go in the Synthetix project members, they are redistributed equally among stakers like you and I and when they get they rewards next Wednesday it will be part of it. There we did a full presentation of the Mintr platform, you see that after doing my exchanges
I still have 271 Synth, I'm going to refresh.. But I only have 80 sUSD left that I want to keep to repay my debt,
I still have however 271 Synth since I have sUSD but also sDEFI but also on sXAG, if silver goes up 2x during the night,
my Synth quantity will grow since I'll get more value in Synth terms. There, this was the core of the subject. So to look over the dashboard, it's an overview you don't just have the amount of what's put, if it's correctly backed, there you see 86% of SNX are locked It's quite high considering you need 51% to start abusing a cryptocurrency network There you have SNX value, you also have sUSD
which can vary slightly although it is a stablecoin just like others of its kind You have the distribution of Synths in the network, currently almost half in sETH,
one third in sUSD, one part in iETH and the rest in multiple tokens You can also see how it is distributed, who is longing using sETH,
who has iETH so the opposite, and the others although there is not much volume but you have exactly the right quantities in sXRP, in iXRP,
$7M in sETH, $1.3M in iETH etc.
It gives you in full transparency everything that goes on the network. I would like before finishing this video to say a little something.
This is what I like, to be able to say we have to way to exchange cryptocurrencies Do you realize the complexity of peer to peer network, it's the Ethereum blockchain
on which has been built Synthetix network. Meaning it's Ethereum miners who validate transactions and keep Synthetix network up to date. But it's the stakers and minters who are people like you and I who will take care of
keeping the collateralization ratio to 800% which guarantees every time you have $1 of Synth you have $8 worth of locked SNX in the smart contract, it is the reserve of currency It is what's done poorly by USDT to have $1 in bank and $1 on the market,
we are this guarantee and it's transparent since everything is on chain You can go on the Synthetix dashboard and check that the collateralization ratio is correct.
You can verify, mint, support, update, and guarantee the financial sustainability of the ecosystem You see the power of Decentralized Finance their tool allows them to get
an exchange without any liquidity concern with zero slippage without any difference between the order call and its execution and to remove the world frontiers to invest on traditional markets, forex and cryptocurrencies.
It's an extraordinary ecosystem. Which is managed from beginning to end by the people who use it.
It's a demonstration of decentralization. There was a first recap on SNX There's a lot more to say but you now have all the basics and more If I really wanted to present SNX to you was because it was complex
but at the same time very interesting and I think the complexity shouldn't prevent us to go deep into some subjects.
If I stopped every time it became challenging I would never have been interested in cryptocurrencies, That's why I was really happy to work on this project,
I was eager to share that with my community And I would really like that my community which
represents a small part of the French community gets the early opportunity on Decentralized Finance which I'm sure of it, in a form or another will be part of the finance future that we know now, stock markets, exchanges, etc..
The second thing was that by taking my time to explain SNX, We took the time to explain very important fundamentals of decentralization and Decentralized Finance, like for example collateralization ratio It's important and you will find this in a lot of Defi projects like the DAI and its stablecoin that functions using a loan and borrow mechanism All this is what's precious and that's why I wanted to take my time because now you learned a lot of terms concepts
(although some of you might know better than I do on the subject) and I count on you to say something in the comments if I said something stupid
so I can fix the mistakes in my description, there will be probably some on this lengthy and complex subject But it was important for me to lay down the basics, and this video is more than a project presentation this video is a tutorial and initiation to what you can do with Decentralized Finance. I really hope you enjoyed this video, it's hours and hours of work
without mentioning the amount of coffee that was consumed! I know I speak fast naturally but I can tell you that with caffeine I can tell you it becomes interesting.
If you liked, subscribe, like and leave a comment It's very important for me to get community's feedback
especially on a subject that required a lot of effort, rigor and work A couple months ago I was already working on SNX
and was arguing with some subscribers on Twitter about some technical aspects when saying it was that but them replying I was wrong when it turned out they were right, it's really a lengthy work based on exchange and feedback it's complex because it's new, and you all know that everything that's new and technological
is what motivates me and I wanted to share that with you It was Hasheur, I count on you to subscribe to the channel,
and we'll see each other in the next video