Some thoughts & ramblings on @synthetix_io and $SNX price action.
I've been staking since Epoch 1 and have seen how the price is affected by different things in the market.
🧵 1/x
I've been staking since Epoch 1 and have seen how the price is affected by different things in the market.
🧵 1/x
First of all it is vital to understand that $SNX is not a passive Gov token. Its true worth, is having it staked to earn rewards.
The goal is to have transaction fee rewards in $sUSD outweigh $SNX rewards by some magnitude in the future.
2/x
The goal is to have transaction fee rewards in $sUSD outweigh $SNX rewards by some magnitude in the future.
2/x
This is currently not the case as the protocol emission is still incentivising staking heavily. But this will change as the emission model reduces $SNX over time and all the building block start falling in place that will drive Transactions through the protocol.
3/x
3/x
Here is a reminder on what the current $SNX emission schedule is and how it will decline over time.
blog.synthetix.io/reaching-monet…
4/x
blog.synthetix.io/reaching-monet…
4/x
The 2 questions I think need to be addressed is:
1- Why is the price of $SNX so weak atm?
2- How will Transaction Fees be the main income for stakers in the future?
5/x
1- Why is the price of $SNX so weak atm?
2- How will Transaction Fees be the main income for stakers in the future?
5/x
My personal view is that many people are distracted by all the new shiny and exciting projects being built in #DeFi (multi-chain and on L2's)
Holders sell $SNX and FOMO into new projects, hoping for quicker short term rewards.
6/x
Holders sell $SNX and FOMO into new projects, hoping for quicker short term rewards.
6/x
Each to their own as this is a high risk play. If you compare the DCA buy model with buy models, it is a much more solid investment stratagy.
Staking $SNX = DCA model for me.
7/x
Staking $SNX = DCA model for me.
7/x
Once these people see the volume of Transaction Fees the @synthetix_io protocol is gong to generate, they will FOMO back in again.
8/x
8/x
The core objective of the @synthetix_io protocol is to become an integral #DEFI component that will facilitate high volume, zero slippage trading for other protocols and services.
9/x
9/x
As we all know @synthetix_io has gone through a couple major evolutionary processes.
Evolution 1: #StableCoin to #derivatives protocol & trading platform
Evolution 2: to a lazer focused #derivatives protocol that enable others to facilitate zero slippage trading.
10/x
Evolution 1: #StableCoin to #derivatives protocol & trading platform
Evolution 2: to a lazer focused #derivatives protocol that enable others to facilitate zero slippage trading.
10/x
Evolution 1 was a great step in the right direction, but because #DEFI was so new the team was distracted to make things work, fixing new attack vectors.
This slowed overall growth down, BUT the learnings was MASSIVE and set up the path for Evolution 2 and the road to V3!
11/x
This slowed overall growth down, BUT the learnings was MASSIVE and set up the path for Evolution 2 and the road to V3!
11/x
If you have the insight of the Vision, Mission and Plans the Spartan Council has, you will be as excited as I am about the future of $SNX!
Have a listen to all the interviews @kaiynne had over the last quarters. Here are a couple links:
13/x
Have a listen to all the interviews @kaiynne had over the last quarters. Here are a couple links:
13/x
https://twitter.com/synthetix_io/status/1445154403632107532?s=20
https://twitter.com/synthetix_io/status/1428180708757893120?s=20
https://twitter.com/BanklessHQ/status/1428023825610932229?s=20
https://twitter.com/anna_tutova/status/1423313299832180737?s=20
14/x
15/x
The future will see @synthetix_io sitting behind many 'transactional service' protocols, that will drive zero slippage trading.
This vision is taking shape, with other protocols integrating directly already:
@kwenta_io
@lyrafinance
@thalesmarket
@aelinprotocol
16/x
This vision is taking shape, with other protocols integrating directly already:
@kwenta_io
@lyrafinance
@thalesmarket
@aelinprotocol
16/x
With V2.5 & V3, services like @1inch and other #DEX aggregators wil be able to seamlessly integrate & provide zero slippage trading.
Large (multi million $), multi hop transactions will have less slippage as part of it goes through the the zero slippage liquidity pool.
17/x
Large (multi million $), multi hop transactions will have less slippage as part of it goes through the the zero slippage liquidity pool.
17/x
Within the next 6-8 months $sUSD is going to become a major income stream for stakers. And going into the future it will give you low risk, high reward yield.
But, you need to start planting now and be patient!
If you fail to see the upside, I can only wish you well.
18/x
But, you need to start planting now and be patient!
If you fail to see the upside, I can only wish you well.
18/x
The one challenge the @synthetix_io Council and Community still need to get right and overcome is the L2 strategy.
The core protocol is migrating to @optimismPBC where it will live.
But...
19/x
The core protocol is migrating to @optimismPBC where it will live.
But...
19/x
We need to have Synth liquidity available wherever the #DeFi need is. It need to provide liquidity beyond #ethereum and @optimismPBC
I believe we need to get liquidity on other L1's and other L2's ion the future!
How? I'll leave the to the clever people. But we need it!
20/x
I believe we need to get liquidity on other L1's and other L2's ion the future!
How? I'll leave the to the clever people. But we need it!
20/x
We need to work with, make use of and integrate with as many other protocols as makes sense to have liquidity and provide zero slippage trading.
Lets look at @OlympusDAO PRO etc
22/x
Lets look at @OlympusDAO PRO etc
22/x
Some very smart people are working on delivering v2.5 and v3 of the @synthetix_io protocol. It and your $SNX investment is in good hands 🍻
23/x
23/x
TLDR RE $SNX ... IYKYK
24/end
24/end
• • •
Missing some Tweet in this thread? You can try to
force a refresh
