YouHodler Now Supports Synthetix (SNX)
Happy Friday everyone! We're pleased to announce yet another great new addition to your YouHodler wallet. As of today, Synthetix (SNX) is now available for the following features on YouHodler:
- Synthetix (SNX) savings accounts (6.0% APR + compounding interest)
- SNX backed loans with LTV as high as 90%
- Multiplying SNX via Multi HODL and Turbocharge
- Converting SNX to any crypto/fiat or stablecoin option on the platform.
We know you're excited to start using SNX on YouHodler now but before you do, let's get to know the project a bit more.
What is Synthetix (SNX)?
Synthetix is an Ethereum-based DeFi protocol that allows users to create synthetic assets. A synthetic asset tracks the price of an underlying asset like a stock or commodity. The benefit for users is that they can trade synthetic assets without holding the underlying asset. This mechanism allows traders to reduce various trading costs, like storage fees incurred when holding commodities such as silver and gold.
On top of that, many financial products don’t allow you to buy a small fraction of the product. For instance, a product costs $1,000, but you only have $100 to invest with. You can solve this problem with Synthetic assets (also called Synths) because you can divide a crypto token into smaller denominations. Therefore, you can buy 1/10th of this financial product by buying 0.1 of the Synth representing this particular financial product.
The creation of synthetic assets is made possible by decentralized oracles that offer reliable pricing data for these stocks and commodities. For that reason, it allows users to create various synthetic assets as long as they are liquid and pricing data is available.
What are Synthetix iSynths and the SNX token?
What’s even more interesting? Synthetix has invented the concept of iSynths. iSynths inversely track the price of assets via price feeds provided by oracles. They allow traders to effectively take a short position. Furthermore, you can invest in leveraged iSynths, which is similar to margin trading.
What about the SNX token? The Synthetix token (SNX) is used as collateral for synthetic assets. They enable the issuance of these Synths by pooling together SNX tokens. This pooled collateral model enables users to perform conversions between Synths directly with the smart contract, avoiding the need for counterparties. It’s a very clever model because you don’t require a DEX anymore that suffers from traditional problems like high slippage and low liquidity. Therefore, it offers a safe model for trading synths as you don’t have to worry about price slippage eating up all your profits.
By holding the SNX token, you get a pro-rata portion of the fees incurred on the Synthetix exchange. However, users don’t have to hold SNX tokens to trade Synths.
If you are a big fan of Synthetix, you can use your SNX tokens with YouHodler’s savings accounts to earn a 6.0% APR. On top of that, SNX is available for Classic Loans, Turbo Loans, and Multi HODL.
DEPOSIT SNX NOW