Today, ProEX would like to introduce one of the most important protocols in the DeFi ecosystem: Synthetix, and show you how to use the Synthetix step by step.
What is Synthetix?
Synthetix is a protocol and platform operated by smart contracts running on the Ethereum blockchain, it connects the traditional finance and DeFi world through mint and trade the “synths”. The synths in Synthetix are blockchain-based synthetic assets, which track the price of certain assets in the real world, including fiat currency, raw materials, stock and even cryptocurrency.
Why is Synthetix that important?
Synthetix is a decentralized platform, which means it is operated by automated codes, so the trading fee is much lower and the settlement is faster when compared with traditional brokers and exchanges. Also, in theory, any assets could be synthesized in Synthetix, and anyone who has the Ethereum wallet can use Synthetix with ease, which significantly reduces the threshold of trading any assets.
Get started? Wait, you need SNX!
The synths are minted by the Synthetix platform native cryptocurrency: SNX. Recently, users need to stake 7 SNX for creating 1 synth, which means you need to fulfill 600% collateralization ratio to send out 1 synth. So, before starting, let’s get the SNX first!
1.To get SNX, choose one exchange you like below, and buy SNX as you want:
Kyber: https://kyberswap.com/swap/eth-snx
1 inch exchange: https://1inch.exchange/#/
Kucoin: https://www.kucoin.com/
Poloniex: https://poloniex.com/exchange/BTC_SNX
MetaMask is another great choice if you already own ETH, so we’ll take MetaMask for example here.
2. Deposit your ETH from exchange or wallet to MetaMask, and swap ETH to SNX, but remember to keep some ETH in your MetaMask to pay the gas fee on Ethereum.
3. Next step, we need to mint synths with Mintr by using SNX, visit https://mintr.synthetix.io/ and connect a web 3.0 wallet such as Metamask, Coinbase Wallet, Ledger etc., and we choose to use Metamask here.
4. Once you connect your MetaMask with Mintr successfully, click the “MINT” box.
5. Enter the amount you want to mint, but make sure the collateralization ratio must be larger than the target collateralization ratio (600% in this case), or just click the “MAX” button to populate the maximum amount of sUSD you’ll be able to mint, given your SNX holdings, then click “MINT NOW”.
6. Users must approve the transaction in their wallet, and wait for the minting processing. Congratulations! You get the synth called “sUSD”.
7. Now, you can visit Synthetix Exchange :https://synthetix.exchange/#/ to trade all kinds of synths by using sUSD!
8. If you don’t want to do any trade, you can just hold your sUSD and stake the SNX, the reward of staking SNX will be 30-40% APY according to the staking rewards website, it’s better than lots of DeFi protocols!
Notes.
Digital assets are a high-risk investment and investors are advised to purchase with caution and be aware of the investment risks.
The information provided in the article does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website’s content as such.
