What is SNX? Detailed introduction to the trading platform and total amount of SNX coins

Synthetix (SNX) enables users to create and trade synthetic assets representing real-world commodities, fiat currencies, and stocks on the Ethereum blockchain.

Oct 01, 2024 at 01:47 pm

What is SNX?

Synthetix (SNX) is a decentralized synthetic asset issuance platform that allows users to create and trade synthetic versions of real-world assets, such as stocks, commodities, and fiat currencies.

Trading Platform

The Synthetix trading platform operates on the Ethereum blockchain and uses a unique architecture called "Synths" to represent synthetic assets. Synths are ERC-20 tokens that are pegged to the value of the underlying asset they represent.

Users can create Synths by depositing collateral in the form of SNX tokens. The amount of collateral required depends on the volatility of the underlying asset. The collateral is used to back the value of the Synth and ensure that it remains pegged to the underlying asset.

Users can trade Synths on the Synthetix exchange against other Synths or against the native SNX token. The exchange uses an automated market maker (AMM) model, which ensures that there is always liquidity for Synths.

Total Supply of SNX Coins

The total supply of SNX coins is capped at 249,319,389 SNX. The initial distribution of SNX tokens was conducted through a token sale in 2018. Currently, SNX tokens are distributed through the following methods:

1. Trading fees: A portion of the trading fees collected on the Synthetix platform is used to purchase and burn SNX tokens.
2. Inflation: A small percentage of SNX tokens are minted each year through inflation to reward Synthetix users.
3. Staking: Users can stake their SNX tokens to earn rewards in the form of sUSD, a synthetic version of the US dollar.

Conclusion

Synthetix (SNX) is a innovative platform that allows users to create and trade synthetic versions of real-world assets in a decentralized manner. The platform operates on a unique architecture called "Synths" and uses a native token called SNX to back the value of Synths. The total supply of SNX coins is capped at 249,319,389 SNX and is distributed through trading fees, inflation, and staking rewards.