• Latest
  • Trending

Whats behind Synthetix (SNX) unusually strong summer?

August 8, 2022
Democratizing Crypto Mining: ZT Mining’s Cloud-Based Revolution

Democratizing Crypto Mining: ZT Mining’s Cloud-Based Revolution

February 19, 2025
What Happens When Global Economies Adopt Crypto?

What Happens When Global Economies Adopt Crypto?

February 19, 2025
Electronic Money Association Announces 2025 Conference: Innovate, Compete, Succeed

Electronic Money Association Announces 2025 Conference: Innovate, Compete, Succeed

January 24, 2025
ADVERTISEMENT
Hong Kong Pioneering Digital Currency: Project e-HKD+

Hong Kong Pioneering Digital Currency: Project e-HKD+

January 24, 2025
Revolutionizing Medical Staffing: How NurseBee is Transforming Healthcare with Blockchain

Revolutionizing Medical Staffing: How NurseBee is Transforming Healthcare with Blockchain

January 23, 2025
$PBIRD Token: Resilience and Growth Potential

$PBIRD Token: Resilience and Growth Potential

January 23, 2025
Crypto Industry Celebrates Trump’s Inauguration with Optimism

Crypto Industry Celebrates Trump’s Inauguration with Optimism

January 18, 2025
Trump’s $TRUMP Meme Coin Launches, Surges in Value

Trump’s $TRUMP Meme Coin Launches, Surges in Value

January 18, 2025
Bitcoin’s Historic Surge to 0,000 Ignites Social Media Frenzy

Bitcoin’s Historic Surge to $100,000 Ignites Social Media Frenzy

January 18, 2025
Tony Parisi’s Metatron Studio: Pioneering a New Era of Metaverse Entertainment

Tony Parisi’s Metatron Studio: Pioneering a New Era of Metaverse Entertainment

January 23, 2025
FiX25 Fintech Islands Experience: Catalyzing Innovation in the Caribbean

FiX25 Fintech Islands Experience: Catalyzing Innovation in the Caribbean

January 23, 2025
Cryptocurrency Fraud Case Highlights Data Privacy and Security Challenges

Cryptocurrency Fraud Case Highlights Data Privacy and Security Challenges

December 18, 2024
Pbird Media
Tuesday, July 15, 2025
Submit Press Release
  • Home
  • Altcoin
    $PBIRD Token: Resilience and Growth Potential

    $PBIRD Token: Resilience and Growth Potential

    Trump’s $TRUMP Meme Coin Launches, Surges in Value

    Trump’s $TRUMP Meme Coin Launches, Surges in Value

    Workforce Training

    Revolutionizing Workforce Development: The Apprentice Token Unveiled

    Crypto

    Top Altcoins to Watch: Next Quarter Predictions and Market Trends

    Unlocking Potential: Top Low-Cost Cryptocurrencies Poised for High Returns by 2025

    Unlocking Potential: Top Low-Cost Cryptocurrencies Poised for High Returns by 2025

    Ethereum 2.0: Unveiling the Transformative Network Upgrades

    Ethereum 2.0: Unveiling the Transformative Network Upgrades

    Altcoin Market Outlook: Key Trends and Predictions

    Altcoin Market Outlook: Key Trends and Predictions

    Top-100 Altcoins Sui and Helium Defy Crypto Market Downtick and Surge in Price Amid New Fundamental Developments

    Top-100 Altcoins Sui and Helium Defy Crypto Market Downtick and Surge in Price Amid New Fundamental Developments

    Celsius moves $59M MATIC, LINK, other altcoins to exchange

  • News
    • All
    • Crypto
    • Investing
    • Metaverse
    • NFTs
    • Web3
    What Happens When Global Economies Adopt Crypto?

    What Happens When Global Economies Adopt Crypto?

    Bitcoin’s Historic Surge to 0,000 Ignites Social Media Frenzy

    Bitcoin’s Historic Surge to $100,000 Ignites Social Media Frenzy

    Tony Parisi’s Metatron Studio: Pioneering a New Era of Metaverse Entertainment

    Tony Parisi’s Metatron Studio: Pioneering a New Era of Metaverse Entertainment

    DeGame’s Platform Update: Transforming the Web3 Gaming Landscape

    DeGame’s Platform Update: Transforming the Web3 Gaming Landscape

    Unlocking Financial Success: The Meteoric Rise of Virtual Reality Investments

    Unlocking Financial Success: The Meteoric Rise of Virtual Reality Investments

    Harnessing the Metaverse: A New Frontier in Digital Finance and Virtual Economies

    Harnessing the Metaverse: A New Frontier in Digital Finance and Virtual Economies

    Celebrating a Decade of Innovation: Bittylicious and the Evolution of Bitcoin Exchanges

    Celebrating a Decade of Innovation: Bittylicious and the Evolution of Bitcoin Exchanges

    Web3 Dubai Summit: Pioneering the Future of Digital Finance

    Web3 Dubai Summit: Pioneering the Future of Digital Finance

    Revolutionizing Asset Ownership: Vike’s Tokenization Breakthrough

    Revolutionizing Asset Ownership: Vike’s Tokenization Breakthrough

  • Technology
    • All
    • Blockchain
    • Fintech
    • Security
    Hong Kong Pioneering Digital Currency: Project e-HKD+

    Hong Kong Pioneering Digital Currency: Project e-HKD+

    Revolutionizing Medical Staffing: How NurseBee is Transforming Healthcare with Blockchain

    Revolutionizing Medical Staffing: How NurseBee is Transforming Healthcare with Blockchain

    FiX25 Fintech Islands Experience: Catalyzing Innovation in the Caribbean

    FiX25 Fintech Islands Experience: Catalyzing Innovation in the Caribbean

    Autofarm’s M AI Move: Redefining DeFi with AutoLabs

    Autofarm’s $5M AI Move: Redefining DeFi with AutoLabs

    Revolutionizing AML and KYC: The AI Advantage

    Revolutionizing AML and KYC: The AI Advantage

    Revolutionizing Digital Security: Tórónet and NexeraID’s Landmark Partnership

    Revolutionizing Digital Security: Tórónet and NexeraID’s Landmark Partnership

    Revolutionizing Remittances: VCASH’s eNaira API Transforms Global Transfers

    Revolutionizing Remittances: VCASH’s eNaira API Transforms Global Transfers

    Manufacturing

    U.S Manufacturing New Federal Incentives and Their Impact on Fintech and Digital Finance

    TradingLink Unveils Revolutionary Cross-Broker Social Trading Model at iFX Asia 2024

    TradingLink Unveils Revolutionary Cross-Broker Social Trading Model at iFX Asia 2024

  • Market Price
  • Opinions and Insights
    What Happens When Global Economies Adopt Crypto?

    What Happens When Global Economies Adopt Crypto?

    Crypto Industry Celebrates Trump’s Inauguration with Optimism

    Crypto Industry Celebrates Trump’s Inauguration with Optimism

    Crypto voter

    The Crypto Voter Revolution: Digital Assets in Political Campaigns

    FLUIDEFI’s New Smart-Contract Auditing & Rating System

    FLUIDEFI’s New Smart-Contract Auditing & Rating System

    Vice President Endorses Cryptocurrency: A Game Changer for Digital Finance

    Vice President Endorses Cryptocurrency: A Game Changer for Digital Finance

    Navigating the Threat of Deepfakes in the Cryptocurrency Ecosystem

    Navigating the Threat of Deepfakes in the Cryptocurrency Ecosystem

    Central Banks at the Crossroads: Navigating Geopolitical Shifts and Technological Innovations

    Central Banks at the Crossroads: Navigating Geopolitical Shifts and Technological Innovations

    Navigating Cryptocurrency Price Movements: Key Insights for Informed Investments

    Navigating Cryptocurrency Price Movements: Key Insights for Informed Investments

    Recent Advancements in Smart Contract Technology: Opportunities and Challenges

    Recent Advancements in Smart Contract Technology: Opportunities and Challenges

  • Trending

No products in the cart.

No Result
View All Result
  • Home
  • Altcoin
    $PBIRD Token: Resilience and Growth Potential

    $PBIRD Token: Resilience and Growth Potential

    Trump’s $TRUMP Meme Coin Launches, Surges in Value

    Trump’s $TRUMP Meme Coin Launches, Surges in Value

    Workforce Training

    Revolutionizing Workforce Development: The Apprentice Token Unveiled

    Crypto

    Top Altcoins to Watch: Next Quarter Predictions and Market Trends

    Unlocking Potential: Top Low-Cost Cryptocurrencies Poised for High Returns by 2025

    Unlocking Potential: Top Low-Cost Cryptocurrencies Poised for High Returns by 2025

    Ethereum 2.0: Unveiling the Transformative Network Upgrades

    Ethereum 2.0: Unveiling the Transformative Network Upgrades

    Altcoin Market Outlook: Key Trends and Predictions

    Altcoin Market Outlook: Key Trends and Predictions

    Top-100 Altcoins Sui and Helium Defy Crypto Market Downtick and Surge in Price Amid New Fundamental Developments

    Top-100 Altcoins Sui and Helium Defy Crypto Market Downtick and Surge in Price Amid New Fundamental Developments

    Celsius moves $59M MATIC, LINK, other altcoins to exchange

  • News
    • All
    • Crypto
    • Investing
    • Metaverse
    • NFTs
    • Web3
    What Happens When Global Economies Adopt Crypto?

    What Happens When Global Economies Adopt Crypto?

    Bitcoin’s Historic Surge to 0,000 Ignites Social Media Frenzy

    Bitcoin’s Historic Surge to $100,000 Ignites Social Media Frenzy

    Tony Parisi’s Metatron Studio: Pioneering a New Era of Metaverse Entertainment

    Tony Parisi’s Metatron Studio: Pioneering a New Era of Metaverse Entertainment

    DeGame’s Platform Update: Transforming the Web3 Gaming Landscape

    DeGame’s Platform Update: Transforming the Web3 Gaming Landscape

    Unlocking Financial Success: The Meteoric Rise of Virtual Reality Investments

    Unlocking Financial Success: The Meteoric Rise of Virtual Reality Investments

    Harnessing the Metaverse: A New Frontier in Digital Finance and Virtual Economies

    Harnessing the Metaverse: A New Frontier in Digital Finance and Virtual Economies

    Celebrating a Decade of Innovation: Bittylicious and the Evolution of Bitcoin Exchanges

    Celebrating a Decade of Innovation: Bittylicious and the Evolution of Bitcoin Exchanges

    Web3 Dubai Summit: Pioneering the Future of Digital Finance

    Web3 Dubai Summit: Pioneering the Future of Digital Finance

    Revolutionizing Asset Ownership: Vike’s Tokenization Breakthrough

    Revolutionizing Asset Ownership: Vike’s Tokenization Breakthrough

  • Technology
    • All
    • Blockchain
    • Fintech
    • Security
    Hong Kong Pioneering Digital Currency: Project e-HKD+

    Hong Kong Pioneering Digital Currency: Project e-HKD+

    Revolutionizing Medical Staffing: How NurseBee is Transforming Healthcare with Blockchain

    Revolutionizing Medical Staffing: How NurseBee is Transforming Healthcare with Blockchain

    FiX25 Fintech Islands Experience: Catalyzing Innovation in the Caribbean

    FiX25 Fintech Islands Experience: Catalyzing Innovation in the Caribbean

    Autofarm’s M AI Move: Redefining DeFi with AutoLabs

    Autofarm’s $5M AI Move: Redefining DeFi with AutoLabs

    Revolutionizing AML and KYC: The AI Advantage

    Revolutionizing AML and KYC: The AI Advantage

    Revolutionizing Digital Security: Tórónet and NexeraID’s Landmark Partnership

    Revolutionizing Digital Security: Tórónet and NexeraID’s Landmark Partnership

    Revolutionizing Remittances: VCASH’s eNaira API Transforms Global Transfers

    Revolutionizing Remittances: VCASH’s eNaira API Transforms Global Transfers

    Manufacturing

    U.S Manufacturing New Federal Incentives and Their Impact on Fintech and Digital Finance

    TradingLink Unveils Revolutionary Cross-Broker Social Trading Model at iFX Asia 2024

    TradingLink Unveils Revolutionary Cross-Broker Social Trading Model at iFX Asia 2024

  • Market Price
  • Opinions and Insights
    What Happens When Global Economies Adopt Crypto?

    What Happens When Global Economies Adopt Crypto?

    Crypto Industry Celebrates Trump’s Inauguration with Optimism

    Crypto Industry Celebrates Trump’s Inauguration with Optimism

    Crypto voter

    The Crypto Voter Revolution: Digital Assets in Political Campaigns

    FLUIDEFI’s New Smart-Contract Auditing & Rating System

    FLUIDEFI’s New Smart-Contract Auditing & Rating System

    Vice President Endorses Cryptocurrency: A Game Changer for Digital Finance

    Vice President Endorses Cryptocurrency: A Game Changer for Digital Finance

    Navigating the Threat of Deepfakes in the Cryptocurrency Ecosystem

    Navigating the Threat of Deepfakes in the Cryptocurrency Ecosystem

    Central Banks at the Crossroads: Navigating Geopolitical Shifts and Technological Innovations

    Central Banks at the Crossroads: Navigating Geopolitical Shifts and Technological Innovations

    Navigating Cryptocurrency Price Movements: Key Insights for Informed Investments

    Navigating Cryptocurrency Price Movements: Key Insights for Informed Investments

    Recent Advancements in Smart Contract Technology: Opportunities and Challenges

    Recent Advancements in Smart Contract Technology: Opportunities and Challenges

  • Trending

No products in the cart.

No Result
View All Result
PBird Media
No Result
View All Result
Home Analysis

Whats behind Synthetix (SNX) unusually strong summer?

August 8, 2022
in Analysis
Reading Time: 8 mins read

Launched in September 2017, the Synthetix protocol allows users to issue and trade derivative tokens called Synths. Recent integrations and upcoming releases have significantly strengthened the position of the Synthetix protocol.

  • Recent integration with 1inch promotes protocol usage on ETH mainnet
  • Some protocols integrated with Synthetix on Optimism are good L2 solutions for high volume/high speed trading and generate fees for the protocol
  • These integrations will increase the fees paid to the protocol. SNX holders are entitled to receive a portion of it when staking in the protocol’s pool.
  • We have major releases on our roadmap for the next 6 months that could lead to further usage growth
  • Increased protocol revenues and increased SNX staking could drive SNX out of the market, creating buying pressure.
Token Price and Volume - Source: Footprint Analytics
Token price and volume Source: Footprint Analytics

This price increase is supported by several events that have occurred in the last few months. ie:

  • Recent releases
  • Harnessing optimism
  • SNX incentives (staking and commission rewards)
  • Protocol roadmap

Here’s what these mean for protocols and crypto derivatives.

What is Synthetics?

synthetics A protocol that uses the token SNX as collateral to create synthetic tokens, providing a liquidity solution for virtually any asset, virtual or not. For example, like Tesla, it is possible to mint a stock from the US market and have a composite representation of it on the blockchain. This opens up the possibility of trading on decentralized exchanges and derivatives markets within the crypto space.

All SNX used to create different types of sTKNs are pooled in one pool. Each sTKN (Synthetic Token) issued represents a liability (or loan) taken from this liquidity pool. Therefore, having a larger pool of liquidity can help alleviate pressure on the sTKN peg (the price equivalence that must be maintained on the asset it represents).

The main innovation of the protocol is to allow users to exchange one synth for another in a simple way, like a common swap between two regular assets. Various protocols are currently leveraging this feature, using Synthetix as their base trading/swap layer.

YOU MAY ALSO LIKE

The Future of Blockchain: Key Innovations Transforming Industries

The Future of Blockchain: Key Innovations Transforming Industries

September 19, 2024
Hong Kong court orders financial disclosures in multi-million dollar MANTRA DAO case

Hong Kong court orders financial disclosures in multi-million dollar MANTRA DAO case

September 18, 2024

Tesla reports no change to $184M Bitcoin holdings amidst record $25B revenue

July 20, 2023

Bitcoin mining difficulty sees 7% uptick in 11th such rise this year

July 12, 2023

Recent releases of Synthetix

1 inch integrated

The last two months have been full of SNX releases and integrations. The most relevant among them was the integration with the DEX aggregator 1inch.

A DEX typically has one pool for each trading pair it offers. One pool for ETH<>DAI and another pool for ETH<>USDC. The ratio between two assets determines the asset exchange rate between pairs. One pool is more expensive for a user to acquire another asset than he has one asset (this is called slippage).

1inch is a search engine that tries to find the best prices for swaps (transactions between two different assets). This is done by quoting various DEXs. One thing that affects the exchange rate of this swap is the size of the trade. The larger the size, the more likely the quoted exchange does not have enough liquidity in its pool for that trade (price slippage).

With the addition of Synthetix, 1inch is now able to find routes where users can trade ETH or BTC of great value without suffering the slippage of standard DEXs. This is made possible by his Synthetix’s unique ability to exchange one synthetic asset for another just by exchanging liabilities (for example, burning sUSD to create sETH).

Daily Mints & Burns of sUSD on ETH Mainnet Over the Last 60 Days - Source: Footprint Analytics
Daily Mints & Burns of sUSD on ETH mainnet over the last 60 days Source: Footprint Analytics

The chart above shows a sharp increase in sUSD usage (mint & burn) over the past two months, reflecting the integration with 1inch. Integrations with Paraswap and Ox (other aggregators) are also on the roadmap.

Harnessing optimism

Synthetix was one of the first protocols present We plan to use Optimism L2 as a solution for more use cases. The list of protocols currently using Synths in Optimism is extensive. Quentaworks like a spot and derivatives exchange.

Synth selection in Kwenta source: Kwenta website

Solutions using Synthetix tokens on Optimism (Kwenta, Lyra, Uniswap) have grown in popularity this year, increasing revenue for the protocol.

Source: Twitter
Source: Twitter

SNX Incentive

The main function of the SNX token is to act as collateral in debt pools that enable the issuance of synthetic assets. By staking SNX on the protocol, holders receive a portion of the revenue collected by the protocol: sUSD commissions generated from traders (Kwenta futures, Lyra options, Kwenta spot, Curve cross-asset swaps, etc.) and SNX inflation reward (incentive for staking). The image below shows the current yield of the token when staked on Synthetix.

Source: Synthetix website
Source: Synthetix website
Fees collected by the Synthetix protocol on the ETH mainnet over the last 90 days - Source: Footprint Analytics
Fees collected by the Synthetix protocol on the ETH mainnet for the last 90 days Source: Footprint Analytics

The chart above confirms the increase in fees collected on the ETH mainnet by the protocol. This is a direct result of our integration with 1inch. The table below shows all fees collected by the protocol. If you check the “optimism perpetual futures” and “optimism” rows, you’ll see that a lot of it comes from derivatives trading done on Kwenta and other protocols in optimism.

Protocol Collection Fees - Source: Crypto Fees
Protocol Collection Fees Source: Crypto Fees

Protocol roadmap

We have major releases on our roadmap for the next few months that will help make the experience of users/applications interacting with the protocol more seamless. The Synth Bridge for Optimism will enable the transfer of assets between ETH and L2 Optimism, reducing latency for Synth’s bridging, increasing volume on that chain, and allowing perpetual and spot trading markets to run more It is worth noting that liquidity is provided. For example, by Quenta.

Future Roadmap - Source: Synthetix Blog
Future Roadmap Source: Synthetix Blog

Version 3 of the protocol makes several additions that increase the use cases while building additional incentives for staking SNX into the protocol. One of them is Vote Locking Tokennomics. This is a financial incentive for users to lock SNX to the protocol for a period of time (up to 4 years). They will be eligible for higher rewards and voting rights on future protocol proposals in exchange for vlSNX (Vote Locked SNX).

The Footprint Analytics community contributes to this work.

The Footprint Community is a place to help data and crypto enthusiasts around the world understand and gain insights about Web3, the Metaverse, DeFi, GameFi, or any other area of the emerging blockchain world. Here you’ll find vibrant and diverse voices who support each other and move the community forward.

get corner In the crypto market

Become a member of CryptoSlate Edge to access our exclusive Discord community, more exclusive content and analytics.

On-chain analysis

price snapshot

more context

Register now for $19 per month Explore all benefits

Share76Tweet47Share13

Related Posts

The Future of Blockchain: Key Innovations Transforming Industries
Analysis

The Future of Blockchain: Key Innovations Transforming Industries

September 19, 2024
Hong Kong court orders financial disclosures in multi-million dollar MANTRA DAO case
Analysis

Hong Kong court orders financial disclosures in multi-million dollar MANTRA DAO case

September 18, 2024
Analysis

Tesla reports no change to $184M Bitcoin holdings amidst record $25B revenue

July 20, 2023
Analysis

Bitcoin mining difficulty sees 7% uptick in 11th such rise this year

July 12, 2023
Analysis

After years of relative obscurity, Litecoin is finally having a moment in the sun

July 4, 2023
Analysis

Japans token issuers are now exempt from corporate tax on unrealized gains

June 26, 2023

Share a Good Read

  • Revolutionizing Asset Ownership: Vike’s Tokenization Breakthrough

    Revolutionizing Asset Ownership: Vike’s Tokenization Breakthrough

    431 shares
    Share 172 Tweet 108
  • Autofarm’s $5M AI Move: Redefining DeFi with AutoLabs

    356 shares
    Share 142 Tweet 89
  • The Crypto Voter Revolution: Digital Assets in Political Campaigns

    354 shares
    Share 142 Tweet 89
  • Celebrating a Decade of Innovation: Bittylicious and the Evolution of Bitcoin Exchanges

    346 shares
    Share 138 Tweet 87
  • Web3 Dubai Summit: Pioneering the Future of Digital Finance

    339 shares
    Share 136 Tweet 85

Tags

altcoin Altcoins Analyst announces Bank Binance Bitcoin blockchain BTC Cardano CEO Coinbase Crypto DeFi Digital Dogecoin ETH Ethereum exchange Fintech firm FTX Heres Inu launch launches market Metaverse Million Network News NFT NFTs Polygon price report SEC Shiba Solana support token top Trading Web3 Week

Recent Posts

  • Democratizing Crypto Mining: ZT Mining’s Cloud-Based Revolution
  • What Happens When Global Economies Adopt Crypto?
  • Electronic Money Association Announces 2025 Conference: Innovate, Compete, Succeed
  • Hong Kong Pioneering Digital Currency: Project e-HKD+
  • Revolutionizing Medical Staffing: How NurseBee is Transforming Healthcare with Blockchain

Newsletter

  • Privacy Policy
  • Editorial Policy
  • Contact Us
  • About Us

Copyright © Pbird Media | Copyright © All rights reserved 2024

PBird Media
Manage Cookie Consent
This website uses cookies to improve your experience. By clicking on "Accept", you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
View preferences
{title} {title} {title}
No Result
View All Result
  • Home
  • Altcoin
  • News
  • Technology
  • Market Price
  • Opinions and Insights
  • Trending

Copyright © Pbird Media | Copyright © All rights reserved 2024