What is SNX coin? What can SNX coins do? How to store SNX coins?

SNX coins are used as collateral to create synthetic assets, for staking to earn rewards, and for governance in the Synthetix protocol.

Oct 08, 2024 at 03:06 pm

What is SNX Coin?

SNX coin is the native token of the Synthetix network, a decentralized synthetic asset platform that allows users to create and trade synthetic assets on the Ethereum blockchain. Unlike traditional cryptocurrencies, which represent ownership of a specific digital asset, SNX coins are used to collateralize the creation of synthetic assets and to participate in the governance of the Synthetix protocol.

What Can SNX Coins Do?

SNX coins serve several key functions within the Synthetix ecosystem:

1. Collateralization: SNX coins are locked up as collateral to create synthetic assets. The amount of SNX required depends on the risk of the asset being synthesized.
2. Staking: SNX holders can stake their coins to earn rewards in the form of SNX tokens. Staked SNX is used to secure the network and to provide liquidity for the synthetic asset market.
3. Governance: SNX holders have the right to propose and vote on changes to the Synthetix protocol. This allows them to participate in the decision-making process and shape the future of the platform.

How to Store SNX Coins

SNX coins can be stored in a variety of cryptocurrency wallets, including:

1. Hardware wallets: Ledger Nano X and Trezor Model T
2. Software wallets: MetaMask and Coinbase Wallet
3. Exchange wallets: Binance and Kraken

When choosing a wallet to store SNX coins, it is important to consider factors such as security, ease of use, and compatibility with the Synthetix protocol.