In the DeFi space, one of the most unique platforms where you can trade your cryptos is Synthetix Exchange. It is a decentralized finance exchange with a twist and the twist makes it a bit special than the others in the market.
So, in this article, you will read about this exchange in detail, and also we will discuss the special feature which makes it a class apart from the others in the DeFi space. The article will guide you thoroughly about the exchange, how cryptos are traded on this platform, how you can connect the wallet, fees, cryptos that are supported, and other information crucial for the crypto traders.
|Legal Name||Synthetix Exchange|
|Supported Cryptos||Bitcoin, Ethereum, USD, XAG, others|
|Trading Options||Crypto Trading, Swapping, Staking|
What is the Synthetix Exchange?
Synthetix Exchange is a decentralized finance exchange where you can trade cryptocurrencies. However, this is not the only thing you do here. This platform is used for the issuance of synthetic assets and that is what makes it different from the others.
The platform has both options that are you can trade crypto assets that are supported by it and also issue them. Here you can also stake your crypto assets and provide liquidity. By providing liquidity, you can earn extra income (incentive) from that as well.
The platform was founded by Kain Warwick in the year 2017 but it came into the light in the year 2018. This platform does not require any KYC for your registration like the traditional financial institutes.
Here you can create synthetic assets with the underlying assets which are real assets like cryptocurrencies, fiat, stocks, and others, and then speculate on them and earn from the same. This is done using the Oracle Feeds.
Another thing that makes it special is that this platform can be used for withdrawing assets worth an exponential amount and then bring them to the Ethereum network.
The platform also has its token called SNX. It is mandatory for creating synthetic assets called Synths. This token can be brought from different cryptocurrency exchanges and then you can store them in the wallet and link it to the Synthetix platform.
Synthetix Exchange features
Let us see the features which make this platform so special –
- Infinite Liquidity: When you trade on Synthetix Platform, you do not need to worry about the liquidity quotient. There is infinite liquidity on this platform. Thus, there is no slippage and even without any order book, you can trade as much as you want.
- Collateral Pool: The crypto you trade on this platform is backed by collateral made of crypto assets only. This makes your trades much more secure. There is a distributed pool of crypto collateral that you can use for backing your trades.
- Peer- To – Contract Trading: The platform has multiple assets, synthetic assets, which can be traded without any hassle.
- Complete Control of your assets: There is no third party involved in the trades. You can directly buy or sell the assets on this platform.
- No personal information required: Since there is no KYC requirement, you do not need to enter any of your personal information on this platform.
- Effective Security measures: The security on this platform is quite effective and the platform is highly immune to hackers’ attacks.
Synthetix Exchange fees and Limits
The fees that you need to pay on this platform is fixed. As a trade consists of two parties one is ‘maker’ and another one is ‘taker’ both need to pay 0.30% of the trade value. This is quite higher than the other platforms.
There are no withdrawal fees as there is no withdrawal in real terms and everything is wallet to wallet.
Currencies supported by Synthetix Exchange
How to connect Wallet on Synthetix Exchange?
To connect the wallet you need to –
- Click on the extreme right-hand corner of the Synthetix Exchange Website where you find the ‘Connect Wallet’ option.
- Once you click this page will open
- Then you can click on the wallet you want to connect to the Synthetix Platform
- Once you connect all your assets in the wallet can be used for trading and staking on Synthetix Platform.
How to Stake Crypto on Synthetix Exchange?
The process for staking crypto on this platform is as follows –
- Buy SNX from any cryptocurrency exchange
- Store them in the wallet you have connected with Synthetix Platform
- Visit ‘Mintr’ which is the proprietary site interface of Synthetix to emboss and manage synths.
- Now connect your wallet to this site
- Click on the option ‘Mint’ and then select the variety of Synths that you want to mint
- 750% is the collateralization rate that you need to take into the account
- Choose the number of synths
- Then click on the ‘Mint now’ option
- Confirm the transaction by checking your wallet
- Enjoy the rewards you earned from the trading fees.
Synthetix Pros and Cons
- Issuance of synthetic assets
- Multiple cryptocurrencies
- High security
- User-friendly interface
- A distributed pool of collaterals
- No fiat is accepted
To conclude, we can say that Synthetix is a unique platform for trading and staking cryptocurrencies. Being one of the most interesting platforms on the DeFi space, it charges a bit of higher fees though but provides great features against the same. The platform is based on Ethereum Blockchain which is secure and used across this space.