Currently, the majority of DeFi applications are built on Ethereum or other EVM-compatible blockchains. This causes Ethereum to be slow and unreasonably expensive to use. Synthetic assets protocols built on Ethereum frequently encounter crucial issues such as high fees, long confirmation time, and losses caused by arbitrage during sharp market moves. To solve these problems, Synthetify has been introduced.
What is Synthetify?
Synthetify is a decentralized protocol for synthetic assets built on Solana. With Synthetify, users can create, exchange, and burn synthetic assets based on prices provided by a decentralized system of oracles. Because the protocol does not utilize an order book, there is no slippage (the price remains constant regardless of the trading amount) even in volatile markets.
Synthetify supports multiple crypto assets such as BTC, ETH, FTT, C98… There are five wallets available to use Synthetify: Phantom, Sollet, Math Wallet, Solflare, and Coin98 Wallet.
Synthetify Protocol has been audited by Kudelski Security.
How does Synthetify work?
Synthetic assets created on the Synthetify exchange track the price of underlying assets offered by decentralized oracles. All synthetic assets are SPL-token based and act similarly to Solana based tokens, which allows further usage on other platforms with almost frictionless integration.
Stakers are those who lock their SNY tokens and mint synthetic assets, incurring exchange debt. Each transaction generates pro-rata exchange fees and benefits stakers.
To ensure network safety, all stakers must maintain a sufficient collateral ratio, otherwise, a portion of their collateral may be liquidated. Collateral is determined by the price of the token, while debt is calculated based on the price of already minted tokens.
Undercollateralized stakers can be liquidated to ensure platform stability, with a portion of their collateral transferred to liquidators in exchange for repaying a part of the stakers debt. 80% of penalties are transferred to liquidators, while 20% are transferred to an exchange-owned account to improve platform stability.
Exchange trading on Synthetify is executed against the public debt pool, which provides users with almost unlimited liquidity and 0% slippage even during large trades. Users can easily start swapping between different types of synthetic assets by connecting a wallet without the KYC process or SNY tokens needed.
Synthetify’s vaults can be utilized to deposit and mint tokens without engaging in a debt pool. Borrow is the counterpart of minting in the vault, allowing users to borrow synthetic assets. Repay allows users to burn borrowed tokens and free their collateral.
Synthetify leverage allows users to open long and short positions of a single synthetic asset up to 1.95x leverage. To start using, users need to choose the collateral token and the token they want to leverage before opening long/short positions and choosing their leverage level.
The formula for the liquidation price is calculated by:
Borrowed amount of USD (Leverage token) / Liquidation ratio * Primary deposit
The liquidation ratio is a constant value compared to the deposited amount. The current debt ratio defines the result of users’ bids.
Synthetify offers the below benefits:
- Instant transactions: Synthetify platform leverages the Solana blockchain infrastructure to enable an ultimate trading experience with sub-second settlement time.
- Layer-one solution: Synthetify takes the composability of the DeFi block to the next level. Their platform and assets work well on the Solana blockchain and can be easily integrated into leading applications like Serum and Raydium.
- Reliable price oracles: Pyth Network provides a constant flow of price updates aggregated from the most trusted parties.
- User-friendly: Users can use the Synthetify platform on any devices. They support all laptops, tablets, and phones.
- Decentralized: Users can access the world of synthetic stocks, crypto, and other assets without any restrictions.
- Non-custodial: Synthetify does not hold users’ assets. Users always retain full ownership of their accounts and all their synthetic assets.
Costs of using Synthetify are adjusted to the current market situation. For now, it is 0.3%. Users who hold a sufficient amount of collaterals in SNY will get an additional discount.
Synthetify Token Use Cases
Synthetify token (SNY) can be used in many cases:
- Stake SNY in a smart contract and use them as collateral to create synthetic assets.
- Hold SNY to get a discount for performing swaps on Synthetify, vote to change protocol parameters or list new assets.
- Maintain sufficient collaterals in SNY in the public debt pool to earn pro-rata exchange fees.
Team, Investors, and Partners
Synthetify is built by a group of experienced blockchain developers to deliver safe and reliable blockchain systems. The founder and lead developer is Norbert Bodziony. He used to be an intern at IBM and worked at Rumble Fish Software Development as a Software Engineer.
The Synthetify team gained the 3rd place in the Solana’s Inaugural Hackathon and the 2nd place in the Solana X Serum DeFi Hackathon.
Synthetify has been invested by many significant investment funds in the market, including Alameda Research and Solana Ventures. They are the two giants behind the outstanding development of the Solana ecosystem in recent years.
Other investment funds include Defi Alliance, CMS Holding, BuildHodl Capital, Ei Ventures, Genblock Capital, and Divergence Ventures.
Roadmaps & Updates
- Mar 8th, 2022: Synthetify introduced the leverage feature, allowing users to leverage long and short positions on the Synthetify exchange.
- Mar 14th, 2022: Synthetify announced they had become a Decentralized Autonomous Organization (DAO). This allows its users to participate in Synthetify DAO, start voting, and create proposals on the future development of the platform.
- May 26th, 2022: Synthetify informed their partnership with Pyth Network, which allowed them to support commodities and stocks like XAU, TSLA, GOLD, or AAPL.
Right now, Synthetify is heading to expansion.
Detailed information about SNY Token
SNY Key Metrics
- Token Name: Synthetify
- Ticker: SNY
- Blockchain: Solana
- Token Standard: SPL
- Contract: 4dmKkXNHdgYsXqBHCuMikNQWwVomZURhYvkkX5c4pQ7y
- Token type: Utility, Governance.
- Total Supply: 100,000,000 SNY
- Circulating Supply: 5,625,000 SNY
SNY Token Allocation
- Ecosystem Reserves: 30%
- Ecosystem Incentivised Fund: 22%
- Team: 20%
- Exchange Liquidity: 10%
- Liquidity Mining: 10%
- Private Sale: 6%
- IDO/IEO: 2%
SNY Token Sale
The SNY IDO took place on 29th June 2021 on Raydium AcceleRaytor.
SNY Token Release Schedule
A total of 100,000,000 SNY will be distributed 100% within 4 years.
- Year 1: ~37,500,000 SNY
- Year 2: ~60,000,000 SNY
- Year 3: ~80,000,000 SNY
- Year 4: ~100,000,000 SNY
How to get Synthetify Token
You can get SNY tokens by doing these things:
- Buy SNY tokens on supported exchanges (find below).
- Stake collateral tokens (such as SNY, SOL, USDC, and renBTC) to issue synthetic tokens and get a share of fees generated by the platform.
Learn more: What is crypto staking?
How to store Synthetify Token
You can store the SNY tokens on Coin98 Wallet with these steps:
- Step 1: Open Coin98 Wallet & click Receive on the home screen.
- Step 2: Search SNY Token.
- Step 3: Click on the correct result, copy the wallet address, and send SNY to this address.
How to buy Synthetify Token
You can buy SNY on these listed exchanges:
- DEX: Gate.io, Raydium, Orca, Bonfida, and Dexlab.
- CEX: ZT, FTX, and Hotbit.
Synthetix (SNX): A protocol used on the Ethereum network to trade or issue synthetic assets.
The derivatives market is still a potential market in the DeFi world since the number of spot users is much higher than the number of derivative users. By providing a decentralized synthetic assets protocol with low cost, almost instant confirmation time, no slippage, Synthetify provides its users a smooth experience and many advantages over its competitors.
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