Synthetix Network Token

SNX

SNX is the governance and utility token for the Synthetix derivatives platform.

Risk Rating
Best
$2.73
-2.60%
Summary
What we like
SNX accrues value from trading synthetic assets (Synths) on its decentralized exchange. It is also used as the governance token for holders to vote on community proposals.
What we like less
SNX is reflexive since it is the primary asset used as collateral to mint Synths. Highly volatile market movements can lead to Synths becoming undercollateralized, which can have cascading effects on the SNX price.
What it means for you
Staking SNX enables you to earn a portion of trading fees as well as access Synths that mimic the price of the underlying asset.
Information
Blockchain
  • Optimism
Key Metrics
  • Market Cap: $894.3M
  • Fully Diluted Valluation: $895.5M
  • FDV / MC: 1
  • Ranking inside Exponential (excluding stables): #21
  • Circulating Supply: 327,769,196
  • Total Supply: 328,193,104
  • Total Supply: 328,193,104
  • Volume (24H): $34M
  • ATH: $28.53 (02/14/2021)
  • ATL: $0.03 (01/06/2019)
Risk Assessment
Best
Asset Strength

SNX is a low-cap asset that represents the blockchain`s native currency or monetary fee used to execute transactions on the network. This asset is exposed to the underlying risks of Synthetix, a protocol rated as Watch out.

Asset Tokenomics

SNX has a fixed supply.

Asset Volatility

SNX is highly correlated to the overall market.

Dependencies

Synthetix

Things to know about SNX

What is SNX used for?

SNX is the utility, governance and revenue-sharing token for the Synthetix ecosystem. Stakers receive a portion of swap fees on the Kwenta decentralized exchange for trading Synths. SNX is the primary asset used to mint Synths, which are created by staking SNX tokens and maintaining a minimum 400% collateralization ratio. Token holders can also partake in the protocol's governance process to vote on proposals and protocol-level changes through its three DAOs (protocolDAO, grantsDAO and synthetixDAO).

SNX tokenomics

SNX launched with an initial supply of 100M tokens. These tokens were allocated with 60% distributed to investors, 3% reserved for bounties and marketing incentives, 5% for partnership incentives, 12% to the foundation (vested quarterly for 12 months), and 20% to the team and advisors (vesting quarterly for 24 months). Subsequently, a new monetary policy introduced an inflationary supply into perpetuity to reward active stakers. However, the most recent proposal from founder Kain Warwick proposed to reintroduce a capped supply of 300M tokens as the protocol no longer needed inflation to bootstrap network demand. This signals a widespread shift of protocol's seeking to limit inflationary rewards to users in favor of more sustainable yield generated from protocol revenue.

How does SNX accrue value?

SNX collects 0.3% of all trading fees on its Kwenta exchange and distributes its proportionally to SNX stakers. SNX is also required to mint Synths and users must maintain a minimum collateralization ratio of 400% in order to continue claiming weekly fees and protocol rewards.

SNX Pools
Sonne SNX Lending
1.6%
Yield
$718K
TVL
Risk
C
Protocol
Sonne
Chain
Optimism