Group items matching

in title, tags, annotations or url

Synthetix is a token trading platform built on Ethereum. It allows to creation of real world assets, like stocks and shares to be bought and traded using crypto. Synthetix started as a stablecoin project called Havvenout, before pivoting to DeFi. Much of Synthetix' recent success can be attributed to its innovative token incentive model. SNX holders stake SNX in return for fees from the Synthetix exchange and rewards from the system's inflationary monetary policy.

Synthetix - the permissionless derivatives protocol - is exploring adjusting its economic incentives for liquidity providers across sETH and sUSD pools. sETH acts as the primary on-ramp for Synthetix users, sUSD also acts as a critical off-ramp. Therefore, there must be high confidence (and liquidity) in the stability of the sUSD peg at $1. The added SNX incentives to Curve will aid in sUSD maintaining its $1 peg and assurance for liquidity providers that the incentives will exist in the long term.

Synthetix has reached the $1 billion in value locked milestone, following other DeFi protocols like Compound and Aave. Synthetix (SNX) has been one of the many DeFi tokens that has made substantial gains in 2020, having hit its all-time high of $7.32 on August 15 and rallied more than 400% year-to-date.

Synthetix offers its own stablecoin, sUSD, but it also expands the concept into many other types of assets and tokens. For example, it offers "inverse" tokens which can be used to short-sell a crypto asset.

In an upcoming release, Synthetix will introduce sUSD-denominated ETH collateral − a feature familiar in many ways to Maker CDP owners − and the value proposition will flip overnight. Not only will this feature deliver more utility to the trader, it will also expose a key advantage sUSD has over DAI as a stablecoin.

Ethereum's gas fees are spiking to record highs once again, rendering many DeFi protocols practically unusable for traders. Average ETH transaction fees are now at a record $17.67. As many DeFi projects require the execution of complex smart contracts, some reports show that fees associated with using these protocols now exceed $1,000. A single large transaction on the Synthetix Network was estimated at above $1,100, while even simple swaps using Uniswap and SushiSwap cost anywhere from $40 to $75. Ethereum is not alone when it comes to soaring transaction fees, with Bitcoin's average transaction costing over $14 at the moment. EIP-1559 may reduce this fee volatility.

PieDAO, the decentralized organization building diversified token pools on the Balancer protocol, announced the mainnet release of its USD++ pool on Tuesday. The pool combines several of the top USD-pegged stablecoins into one tradable token. It's another example of a creative use case of the rapidly growing Balancer protocol-and of the expanding universe of ideas DAOs are working to address. The USD++ pool will contain Maker DAI, Synthetix sUSD, Tether TUSD, and Coinbase USDC.