Market Cap: $2.6663T -3.580%
Volume(24h): $74.8835B -17.110%
Fear & Greed Index:

33 - Fear

  • Market Cap: $2.6663T -3.580%
  • Volume(24h): $74.8835B -17.110%
  • Fear & Greed Index:
  • Market Cap: $2.6663T -3.580%
Cryptos
Topics
Cryptospedia
News
CryptosTopics
Videos
Top Cryptospedia

Select Language

Select Language

Select Currency

Cryptos
Topics
Cryptospedia
News
CryptosTopics
Videos

What is SNX? What is SNX coin

The SNX cryptocurrency serves as the native token of the Synthetix platform, providing collateral, enabling governance, and facilitating rewards for staking within the DeFi ecosystem.

Oct 01, 2024 at 06:53 am

Understanding SNX and Its Cryptocurrency SNX

1. What is SNX?

Synthetix (SNX) is a decentralized finance (DeFi) protocol that allows users to trade synthetic assets, known as Synths, representing real-world assets such as stocks, commodities, fiat currencies, and cryptocurrencies. These Synths track the prices of the underlying assets without requiring users to hold the physical assets.

2. What is SNX Coin?

SNX is the native cryptocurrency of the Synthetix platform. It serves multiple functions within the ecosystem, including:

  • Collateral: SNX is used as collateral to issue and back all Synths.
  • Governance: SNX holders participate in the governance of the protocol through voting on key decisions.
  • Staking: Users can stake SNX to earn rewards for supporting the network and reducing price volatility.

3. How Does Synthetix Work?

Synthetix operates on a permissionless blockchain and uses a two-token system:

  • Synths: Represent synthetic assets and track their price movements.
  • SNX: Provides collateral and supports the stability of the system.

Users can mint Synths by depositing SNX as collateral. The value of the collateral must cover the value of the Synths minted. When users sell or burn Synths, they receive back the corresponding amount of their collateral.

4. Advantages of Using Synthetix

  • Access to Diverse Assets: Allows users to trade various synthetic assets without buying or selling the underlying assets.
  • Flexibility and Leverage: Provides flexibility to adjust positions and use leverage in synthetic trading.
  • Transparency and Security: Operates on a blockchain, ensuring transparency and security.

5. SNX Tokenomics

  • Total Supply: 249,165,288 SNX
  • Initial Circulating Supply: 105,045,719 SNX
  • Inflation Rate: Approximately 1% per year

6. Conclusion

Synthetix (SNX) and its native coin, SNX, play a significant role in the DeFi ecosystem, allowing users to access and trade synthetic assets in a flexible and secure manner. The tokenomics of SNX support the stability and governance of the platform, making it an attractive option for decentralized finance enthusiasts.

Disclaimer:info@kdj.com

The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!

If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.

Related knowledge

What is a decentralized identity (DID) in DeFi?

What is a decentralized identity (DID) in DeFi?

Mar 23,2025 at 11:57am

Key Points:Decentralized Identifiers (DIDs) offer a self-sovereign approach to digital identity management, crucial for DeFi's privacy and security needs.DIDs operate independently of centralized authorities, empowering users with control over their data.Integrating DIDs into DeFi applications enhances user privacy, reduces reliance on intermediaries, a...

What does

What does "composability" mean in DeFi?

Mar 14,2025 at 12:36pm

Key Points:Composability in DeFi refers to the ability of different decentralized finance (DeFi) protocols to interact and combine seamlessly, creating novel financial products and services.This interoperability is a core tenet of the DeFi ecosystem, fostering innovation and efficiency.Understanding composability requires exploring its mechanisms, benef...

What is token economics in DeFi?

What is token economics in DeFi?

Mar 14,2025 at 03:20am

Key Points:Token economics in DeFi defines how tokens are used to incentivize and govern decentralized finance (DeFi) protocols.It encompasses token utility, distribution mechanisms, and economic models designed to ensure sustainability and growth.Understanding token economics is crucial for evaluating the long-term viability and potential risks of DeFi...

How are transaction fees calculated in DeFi?

How are transaction fees calculated in DeFi?

Mar 14,2025 at 04:25am

Key Points:DeFi transaction fees vary significantly depending on the specific protocol, network congestion, and the complexity of the transaction.Gas fees, a crucial component, are paid in the native token of the blockchain (e.g., ETH on Ethereum).Factors influencing gas fees include the type of transaction, data size, and network demand.Protocols often...

What is an oracle in DeFi?

What is an oracle in DeFi?

Mar 22,2025 at 06:50am

Key Points:Oracles bridge the gap between on-chain and off-chain data in DeFi, providing real-world information to smart contracts.Different oracle types exist, each with its own strengths and weaknesses, including centralized, decentralized, and hybrid oracles.Security and reliability are crucial concerns for oracles, as vulnerabilities can lead to sig...

What is a cross-chain bridge? What is its role in DeFi?

What is a cross-chain bridge? What is its role in DeFi?

Mar 14,2025 at 10:00am

Key Points:Cross-chain bridges facilitate the transfer of assets between different blockchains.They are crucial for DeFi's interoperability, allowing users to access diverse applications and liquidity pools across various networks.Several types of cross-chain bridges exist, each with its own security and scalability trade-offs.Understanding the risks as...

What is a decentralized identity (DID) in DeFi?

What is a decentralized identity (DID) in DeFi?

Mar 23,2025 at 11:57am

Key Points:Decentralized Identifiers (DIDs) offer a self-sovereign approach to digital identity management, crucial for DeFi's privacy and security needs.DIDs operate independently of centralized authorities, empowering users with control over their data.Integrating DIDs into DeFi applications enhances user privacy, reduces reliance on intermediaries, a...

What does

What does "composability" mean in DeFi?

Mar 14,2025 at 12:36pm

Key Points:Composability in DeFi refers to the ability of different decentralized finance (DeFi) protocols to interact and combine seamlessly, creating novel financial products and services.This interoperability is a core tenet of the DeFi ecosystem, fostering innovation and efficiency.Understanding composability requires exploring its mechanisms, benef...

What is token economics in DeFi?

What is token economics in DeFi?

Mar 14,2025 at 03:20am

Key Points:Token economics in DeFi defines how tokens are used to incentivize and govern decentralized finance (DeFi) protocols.It encompasses token utility, distribution mechanisms, and economic models designed to ensure sustainability and growth.Understanding token economics is crucial for evaluating the long-term viability and potential risks of DeFi...

How are transaction fees calculated in DeFi?

How are transaction fees calculated in DeFi?

Mar 14,2025 at 04:25am

Key Points:DeFi transaction fees vary significantly depending on the specific protocol, network congestion, and the complexity of the transaction.Gas fees, a crucial component, are paid in the native token of the blockchain (e.g., ETH on Ethereum).Factors influencing gas fees include the type of transaction, data size, and network demand.Protocols often...

What is an oracle in DeFi?

What is an oracle in DeFi?

Mar 22,2025 at 06:50am

Key Points:Oracles bridge the gap between on-chain and off-chain data in DeFi, providing real-world information to smart contracts.Different oracle types exist, each with its own strengths and weaknesses, including centralized, decentralized, and hybrid oracles.Security and reliability are crucial concerns for oracles, as vulnerabilities can lead to sig...

What is a cross-chain bridge? What is its role in DeFi?

What is a cross-chain bridge? What is its role in DeFi?

Mar 14,2025 at 10:00am

Key Points:Cross-chain bridges facilitate the transfer of assets between different blockchains.They are crucial for DeFi's interoperability, allowing users to access diverse applications and liquidity pools across various networks.Several types of cross-chain bridges exist, each with its own security and scalability trade-offs.Understanding the risks as...

See all articles

User not found or password invalid

Your input is correct