.@synthetix_io - pioneer of the Debt Pool model & #slippage -free swaps is a highly sound #DeFi protocol, technically.
However, all synths on it are backed by their native $SNX , causing decreased usage & serving as a bottleneck for growth.
Here's how this is avoided on SYNTHR🔽
However, all synths on it are backed by their native $SNX , causing decreased usage & serving as a bottleneck for growth.
Here's how this is avoided on SYNTHR🔽
The use of its native token, $SNX as (over)collateral, poses some risk; the system depends on the value of the $SNX token being relatively stable.
If the price of $SNX were to fall quickly, it could potentially cause mass liquidations of syAssets on the Synthetix platform…
If the price of $SNX were to fall quickly, it could potentially cause mass liquidations of syAssets on the Synthetix platform…
…and to prevent this & preserve collateralization ratio, the system depends on users buying more $SNX tokens. Furthermore, newer regulation also threatens to upend the $SNX -backed minting system, affecting current & future iterations of the protocol.
https://twitter.com/ritwikrudra91/status/1572643979304247302?s=20&t=8rHfiy6NhPiRo2M-F8vl0g
All synths on SYNTHR are backed by liquid collateral, whilst still retaining the benefits of the Debt Pool model - our veSYNTH is used as a fee accrual asset instead.
Users mint syUSD by creating over-collateralized CDPs using highly liquid assets such as $ETH, $USDT, & $USDC.
Users mint syUSD by creating over-collateralized CDPs using highly liquid assets such as $ETH, $USDT, & $USDC.
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