Synthetix - a decentralized synthetic asset issuance protocol, built on Ethereum. These synthetic assets are backed by the SNX network token, which allows synthetic assets to be issued while being locked in a contract.
Contents:
- Description of the Synthetix
- Benefits of blockchain platform
- Future Synthetix functionality
- More about dapp
Description of the Synthetix
The unified collateral model allows users to perform transformations between assets directly, using a smart contract, avoiding the need for third parties. This mechanism solves the liquidity and slippage problems, faced by the DEX.
Synthetix is also testing ETH as an alternative form of voice now. This means that traders can borrow Synths against their ETH and start trading instead of selling ETH.
Benefits of blockchain platform
Trading on Synthetix provides many advantages over centralized exchanges and DEX-based order books. Here is some of them:
| Order book | The lack of an order book means that all trades are executed against a contract, known as P2C (peer-to-contract) trading. |
| Rate | Assets are assigned an exchange rate through pricing channels, provided by the oracle, and can be converted, using this platform. |
| Exchange | Exchange of assets without a counterparty. |
There are currently five Synth categories available: optional currencies, commodities, cryptocurrencies, reverse cryptocurrencies and cryptocurrency indices. The current cryptocurrency indices are sDEFI and sCEX (and their inversions), which track the DeFi asset basket and the centralized exchange token basket.
Future Synthetix functionality
As a decentralized protocol, the Synthetix team is committed to decentralizing resistance - this will be a gradual process as the system evolves. This includes important areas such as their prices. They previously announced a partnership with Chainlink, Oracle's decentralized solution provider. They also initiated regular community governance calls to ensure that project goals are aligned with the community. What else will appear from the new:
- additional assets to provide greater utility;
- leveraged trading.
Moreover, advanced order types will be available, which limits the usability of the exchange. The improved ordering engine will be able to support limit, stop-limit and other advanced order types. This will use the relay network to process pre-orders.
More about dapp
There is a White paper on the platform. There you can find out more detailed information about the work of the project. If you still have any questions, you can discuss them with the community on Twitter. Also, there you can find out about the upcoming updates, promotions and participate in contests.