What is SNX coin? What does SNX mean?

Synthetix (SNX) is a blockchain-based decentralized platform for issuing and trading synthetic assets that track the prices of real-world assets, backed by collateralized SNX tokens and governed by SNX holders.

Oct 01, 2024 at 11:06 am

1. What is SNX Coin?

Synthetix Network Token (SNX) is a native cryptocurrency and governance token for the Synthetix platform, a decentralized synthetic asset issuance protocol.

2. What does SNX Mean?

SNX stands for "Synthetix". The coin derives its name from the platform's ability to create "synthetic assets", which track the price of real-world assets such as fiat currencies, commodities, and stocks.

3. What is the Purpose of SNX?

SNX serves several purposes within the Synthetix ecosystem:

Collateralization: SNX tokens are staked as collateral to issue and maintain synthetic assets.
Governance: SNX holders have voting rights on platform decisions and proposals.
Transaction fees: SNX is used to pay network transaction fees.
Incentivization: SNX holders are rewarded with inflation rewards for staking their tokens.

4. How does SNX Work?

The Synthetix platform uses a two-token system:

SNX Token: The collateral token used to maintain synthetic assets.
Synth Tokens: Synthetic assets that track the price of real-world assets.

Users can stake SNX tokens to mint Synth tokens, provided they meet the required collateralization ratio. This process allows users to access and trade synthetic assets without holding the underlying asset directly.

5. Key Features of SNX:

Decentralized synthetic asset protocol
Collateralized by SNX tokens
Governance system driven by SNX holders
Utility for transaction fees and incentivization
Enables seamless trading of synthetic assets

Disclaimer:info@kdj.com

The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research！

If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.

Fear & Greed Index

Trade Now

Biggest Gainers

TAI

$0.1250

71.04%

Trade Now
ETHW

$1.9618

30.57%

Trade Now
JST

$0.0399

25.58%

Trade Now
ACS

$0.0018

24.66%

Trade Now
XMW

$0.0859

21.91%

Trade Now
SUPRA

$0.0057

17.43%

Trade Now

Latest Crypto News

Coldware (COLD): Defying Market Sentiment with Solid Utility
2025-04-27 14:10:13
There’s money in your pocket, and we don’t mean bills.
2025-04-27 14:10:13
An XRP ETF Has Launched in Brazil, Expanding Regulated Crypto Investment and Supporting XRP's Global Adoption
2025-04-27 14:05:12
The crypto market witnessed volatility over the past 24 hours, with over $264.94 million in total liquidations
2025-04-27 14:05:12
Remittix (RTX) Raises $500M to Acquire Solana Network Targeting Global Bank Transfers
2025-04-27 14:00:20
Multiple cryptocurrency assets will experience critical development during the evolving market
2025-04-27 14:00:20

Related knowledge

What is DeFi? How does it leverage blockchain technology?

Apr 27,2025 at 12:49pm

What is DeFi? How does it leverage blockchain technology? Decentralized Finance, commonly known as DeFi, represents a shift from traditional centralized financial systems to a more open, permissionless, and transparent ecosystem built on blockchain technology. At its core, DeFi aims to recreate traditional financial instruments and services—such as lend...

What is impermanent loss insurance? What are the solutions?

Apr 12,2025 at 01:14am

What is Impermanent Loss Insurance? What are the Solutions? Impermanent loss is a significant concern for liquidity providers in decentralized finance (DeFi) platforms. It occurs when the price of tokens in a liquidity pool changes compared to when they were deposited, leading to a potential loss if the provider decides to withdraw their liquidity. To m...

What are algorithmic stablecoins? How do they maintain anchoring?

Apr 12,2025 at 11:35am

Algorithmic stablecoins represent a fascinating and innovative segment within the cryptocurrency ecosystem. These digital assets are designed to maintain a stable value, typically pegged to a fiat currency like the US dollar, through the use of algorithms rather than traditional collateral. This approach distinguishes them from other types of stablecoin...

What is leveraged mining? How is risk-return calculated?

Apr 11,2025 at 04:07pm

What is Leveraged Mining? How is Risk-Return Calculated? Leveraged mining is a strategy used in the cryptocurrency space where miners borrow funds to increase their mining capacity and potential returns. This approach can amplify both profits and losses, making it a high-risk, high-reward endeavor. Understanding how to calculate the risk and return asso...

What is an aggregator? How does 1inch optimize transaction paths?

Apr 12,2025 at 05:00pm

An aggregator in the cryptocurrency space is a tool that compiles and compares data from multiple decentralized exchanges (DEXs) to find the best possible trading routes and prices for users. Aggregators are essential for traders looking to optimize their transactions, as they can automatically search through various liquidity sources to ensure the most...

What is a flash exchange? How is it different from a normal exchange?

Apr 16,2025 at 03:43pm

A flash exchange, also known as a flash swap, is a relatively new concept within the cryptocurrency space that has gained significant attention due to its innovative approach to trading. Unlike traditional exchanges, flash exchanges leverage the power of decentralized finance (DeFi) protocols to enable instant, collateral-free trades. In this article, w...