Synthetix In-depth Report Generated by AI - For further details, please review:
Synthetix (SNX) is a blockchain and software firm, initially known as Havven, focusing on creating on-chain synthetic assets. These assets, called Synths, are pegged to real-world commodities like metals, indices, and fiat currencies. It's a platform for decentralized synthetic assets, providing on-chain exposure to various real-world assets, backed by SNX tokens locked in smart contracts as collateral. These Synths allow users to trade indices, stocks, commodities, and currencies without owning the underlying assets.
The platform was founded by Kain Warwick, alongside key contributors Clinton Ennis and Justin Moses. Initially, Synthetix aimed to create cryptocurrencies that tracked the performance of traditional currencies on various blockchains. It later expanded to include other cryptocurrencies and commodities.
Synthetix utilizes decentralized price oracles for trading assets typically inaccessible within the cryptocurrency landscape, like gold and stocks. This feature is available on decentralized exchanges built atop the Synthetix platform. The platform's Synths serve as blockchain equivalents of traditional synthetic assets, tracking real-world asset prices. Synthetix also includes a feature called Kwenta, a decentralized exchange for trading these Synths.
Financially, Synthetix is recognized for its innovation in the crypto sphere, creating a bridge between real-world assets and cryptocurrencies. This increases financial inclusion, allowing anyone with internet access to trade equities or real-world assets. However, the platform faces potential risks from interdependencies, such as its reliance on the Ethereum blockchain, and regulatory challenges due to its nature as a bridge between traditional finance and cryptocurrency.
The SNX token is central to Synthetix, required for generating new Synths. Staking SNX tokens collateralizes the network, rewarding users with trading fees or inflationary rewards. Staking is also necessary for minting new Synths, which in turn creates a "debt" that can fluctuate based on exchange rates and supply in the network. As for its tokenomics, SNX has a market capitalization of nearly $643 million, with a trading volume of approximately $15 million, and a total value locked (TVL) of over $376 million. The total supply of SNX tokens is over 324.4 million.
Upcoming developments for Synthetix include the release of its third version, V3, featuring permissionless markets, multi-collateral staking, and cross-chain updates. This is expected to further grow its community and ecosystem. Synthetix stands as a leading DeFi protocol in synthetic assets, potentially generating a vast market of tokenized real-world assets within the blockchain sector
Synthetix (SNX) operates in the sector of synthetic assets within the blockchain field. Synthetic assets in blockchain are digital assets that represent other assets, such as commodities, currencies, or stocks, on a blockchain platform. They mimic the value of these underlying assets and are often used for trading and investment purposes in the decentralized finance (DeFi) space.
Regarding the current situation and development prospects of the synthetic assets sector in blockchain for 2023, I was unable to find specific information within the allocated time. The synthetic assets sector is a sub-domain of the broader DeFi and blockchain industries, which have been experiencing rapid growth and innovation. The development of synthetic assets is closely tied to advancements in blockchain technology, DeFi platforms, and regulatory environments. The sector is likely to evolve with the ongoing development of blockchain technology, increasing demand for decentralized financial services, and the integration of traditional financial assets into the blockchain ecosystem.
For the most accurate and up-to-date information about the current situation and future prospects of the synthetic assets sector in blockchain, I recommend consulting recent market research reports or industry analyses specific to DeFi and synthetic assets.
The tokenomics of Synthetix (SNX) are designed to incentivize coordination and growth within the Synthetix Network. The key aspects of its tokenomics, including token allocation, supply schedule, and mechanisms for new token creation, are as follows:
60% to Investors and Token Sales
3% to Bounties and Marketing Incentives
5% to Partnerships
12% to the Foundation
20% to the Team and Advisors
Supply Schedule: The total supply of SNX tokens is capped at 282,337,310, with an inflationary type emission rate since its genesis. The initial token sale for SNX occurred on February 28, 2018, and the supply of SNX is expected to be fully vested in March 2024
Funding Rounds: Synthetix has undergone several funding rounds:
$250,000 raised in the Seed Round on September 17, 2017
$610,000 raised in the Pre-Sale in January 2018
$23,420,000 raised in the Private Sale in February 2018
$5,300,000 raised in the Public Sale in February 2018
$3,800,000 raised in Partnership Incentives in October 2019
$12,000,000 raised in Funding Rounds in December 2020
Staking: SNX stakers earn weekly rewards for collateralizing the network. These rewards come from trading fees charged to traders and inflationary rewards, which are newly minted SNX tokens held in escrow for a year. Escrow-locked SNX tokens can be staked during this period, providing further rewards to stakers
Inflation Rewards: Synthetix distributes weekly inflation rewards based on guidelines set in SIP-202 (Target Staking Ratio) and variables in SCCP-294. The inflation rate adjusts weekly to achieve a target staking ratio, which is the percentage of SNX collateral in staked addresses versus the total SNX collateral. The inflation rate decreases if the staking ratio is above 82%, remains the same between 58% and 82%, and increases if below 58%
Kain Warwick: He is the founder of Synthetix and has been a pivotal figure in its development. Prior to Synthetix, Warwick was involved in developing crypto payment gateways in Australia and held positions such as an Advisory Council Member in Blockchain Australia
Justin Moses and Clinton Ennis: These two are core members of the Synthetix team. Justin Moses serves as the Chief Technology Officer (CTO) at Synthetix and has been with the company since its beginning
Initial Stages: Synthetix, initially started as Havven by Kain Warwick, managed to raise $30 million in an Initial Coin Offering (ICO) in 2018
Seed Round and Pre-Sale: In the Seed Round on September 17, 2017, Synthetix raised $250,000. This was followed by a Pre-Sale in January 2018, where they raised $610,000 at an average price of $0.27
Private and Public Sales: In February 2018, Synthetix raised $23,420,000 in the Private Sale and $5,300,000 in the Public Sale
Recent Funding Rounds: Synthetix underwent several private funding rounds, including a notable one in February 2021, securing $12 million from venture capital firms such as Coinbase Ventures, Paradigm, and IOSG. Another round in March 2023 raised $20 million from Singapore-based DWF Labs
List all important events and milestones in the development process of SNX. Significant Events and Milestones in Synthetix's Development:
H1 2022:
Synthetix Futures Launch (March 2022): Introduction of perpetual futures, allowing leveraged long and shorts on Optimism with low fees and instant execution
Atomic Swaps and Integrations (May 2022): Introduction of atomic swaps, significantly increasing trading volume and introducing integrations with platforms like 1inch and Curve
Debt Pool Synthesis (March 2022): Merging of debt pools on mainnet and Optimistic Ethereum
New Liquidation Mechanism (May 2022): A redesigned mechanism to ensure proper system collateralization
V3GM Election Module (June 2022): Implementation of fully on-chain elections for Synthetix governance
Circuit Breakers and Dynamic Exchange Fees (Feb/March 2022): Introduction of measures to limit frontrunning in trading
Automated SNX Claiming (June 2022): Collaboration with Gelato to automate SNX staking rewards claiming
Automated Debt Pool Hedging (June 2022): Implementation of a one-click debt mirror index for SNX stakers on Optimism
H2 2022:
sUSD Bridge - SIP 229 (2022): Facilitated the movement of sUSD between Optimism and Ethereum mainnet, enhancing network capital efficiency
Synthetix Futures Perps V2: Generated over $2.8 billion in volume and $10 million in exchange fees since its release
Synthetix V3: A complete rebuild of Synthetix to transform it into a permissionless derivatives platform
Debt Migration - SIP 237 (2022): Enabled one-click migration of staking debt position from Ethereum to Optimism
Scaling Focus: Over the past year, Synthetix has focused on building and securing its architecture, with an emphasis on scaling and enhancing user experience
Upcoming Features: The roadmap includes traditional asset classes, new crypto synths, leveraged synths, binary options, advanced order types, trading incentives, interface enhancements, and more
The Andromeda Release (2023):
Core V3 and Perps V3 Deployment: This marks a major step forward, featuring the deployment of Core V3 and Perps V3, new collateral in the form of USDC, and deployment on a new blockchain, Base
Perps V3 Upgrades: Includes cross margin, multi collateral, account-based access controls, liquidation improvements, and deterministic settlements
Testing and Exploration: Testing of various new features, including USDC as collateral and its impact on liquidity and stability
Isolated Deployment on Base: This allows for distinct testing and development separate from the Optimism/Ethereum Mainnet V2X system
Success Metrics: Focused on stable market operations, robust liquidity provision, and positive user experiences
Initial Deployment: Tentatively scheduled for December with limited capabilities, progressively increasing before a public launch
Andromeda's Impact: Aims to reinforce Synthetix's position as a cutting-edge DeFi protocol with expanded collateral options, improved trading experiences, and innovative features
Synthetix Official Website: : synthetix.io
Synthetix Litepaper: docs.synthetix.io/synthetix-protocol/the-synthetix-protocol/synthetix-litepaper
Welcome to Synthetix: docs.synthetix.io/synthetix-protocol/welcome-to-synthetix
Contract Addresses and Releases on GitHub: github.com/Synthetixio
Staking Platform: staking.synthetix.io
Governance: governance.synthetix.io
Current Valuation of Synthetix (SNX)
As of recent data, Synthetix's price and market capitalization vary slightly across different sources but present a consistent picture of its current valuation:
Price: Ranges from $3.32 to $3.65 USD
Market Cap: Estimates vary but are generally around $1 billion USD, with slight fluctuations Future Prospects of SNX (2023 to 2030) Expert analyses and predictions suggest a range of outcomes for the future value of Synthetix:
2023 Predictions:
CoinCodex: Predicts a decrease to $3.22 by December 6, 2023, with a neutral sentiment and a Fear & Greed Index indicating greed
Fintech Insight: Projects significant growth with a predicted price range between $50 and $70 by the end of 2023, subject to market conditions and developments
2024 to 2025 Predictions:
2024: CoinCodex estimates a yearly low of $3.13 and a high of $12.96, while Fintech Insight predicts a range between $80 and $100
2025: CoinCodex anticipates a range between $3.57 and $11.08, whereas Fintech Insight projects a price range of $120 to $150
2030 Long-Term Forecast:
CoinCodex: Predicts a range between $1.73 and $8.96, indicating a potential gain of 168.87% if it reaches the upper price target
Fintech Insight: Envisions a potential range of $300 to $500, depending on the platform's successful navigation of challenges and market dynamics
Analysis and Considerations
Market Sentiment: As of December 2023, the sentiment is neutral with equal bullish and bearish indicators
Technical Indicators: The 200-day SMA is expected to rise, and the short-term 50-Day SMA is estimated to hit $3.19 by the end of December 2023
Support and Resistance Levels: SNX has defined support levels at $3.36, $3.27, and $3.13, and resistance levels at $3.59, $3.73, and $3.81
Investment Viability: Synthetix has shown a 90.71% increase in the last year but a -30.73% performance over three years. The current forecast for 2023 is neutral, suggesting that it might be a good buy considering both technical and fundamental factors
Monthly and Yearly Predictions: A short-term decrease is expected in the next month, but a gain is forecasted for the next six months and a significant increase by November 2024