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. Synthetix 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. Synthetix is one of the most interesting Decentralised Finance (DeFi) projects currently in the space. A distributed asset issuance protocol on a blockchain.
|Deposit Method||wire transfer and credit cards|
|Waves Platform Margin Trading||No|
How To Sign Up & Start Trading
You Sign Up For A User Account By Providing Basic Information.
On Every Exchange You Will Get Option For Sign Up Or Create Account . Just Fill Some Basic Details Like Name , Email , Password , Security Question Etc For Registration . It Is First Step To Start Trading On Any Exchange
You Then Receive An E-mail In Your Mailbox To Activate Your Account.
Before You Can Login, You Must Active Your Account With The Code Sent To Your Email Address.Then You Will See A Message That Your Financial Account Is Activated And Ready To Go. This Means That You Can Log In And Start Trading In Cryptocurrency.
For Successful Verification You Will Need Identity Documents. For Example, You Can Use A Driver’s License Or Passport, Where The Name Is Duplicated In Latin Letters.Confirmation Of Identity On Exchange Is An Optional Step. The Procedure Must Be Completed Only If You Want To Remove The Restrictions Of Btc On Deposit Or Withdrawal Of Funds Per Day.
Synthetix Exchange Trading fees
Synthetix one thing they can’t stress enough is that you must always ascertain the trading fees at any exchange you are interested in. Every trade occurs between two parties: the maker, whose order exists on the order book prior to the trade, and the taker, who places the order that matches (or “takes”) the maker’s order. Makers make the liquidity in a market and takers remove this liquidity by matching makers’ orders with their own.
The global industry average taker fee has for a long time been 0.25% of the value of the order. Today, we see a shift towards even lower industry averages. Many new exchanges now charge 0.15% or 0.10% instead. At Synthetix Exchange, both takers and makers pay 0.30%. This fee is slightly above the historic industry average, but quite a bit above the newer industry averages.
Synthetix Exchange Withdrawal fees
Another fee to consider before choosing which exchange to trade at is the withdrawal fee. The withdrawal fee is usually fixed (regardless of the amount of cryptocurrency units withdrawn), and varies from cryptocurrency to cryptocurrency. The global industry average withdrawal fee is 0.000812 BTC when you withdraw BTC. Here, at Synthetix Exchange, you don’t really make withdrawals (all trading is wallet to wallet) so there’s not really a withdrawal fee to compare with in the first place.
Synthetix Exchange does not – like all (or at least close to all) other DEXs – accept any deposits of fiat currency. This means that crypto investors without any previous holding of crypto assets can’t trade at this trading platform. In order to purchase your first cryptos, you need a so called entry-level exchange, which is an exchange accepting deposits of fiat currency
How Does it Work?
The Synthetix Network features two main assets: SNX (the native token) and Synths (the synthetic assets). In order to mint a Synths like sUSD, token holders lock SNX as collateral. All Synths are minted relative to the value of locked SNX at a given collateralization ratio. Once minted, anyone in the world can access those synths to be used for a variety of use cases including long-term investing, trading, and remittances.
The primary Synth minted is the platform’s native stablecoin, sUSD, which offers an onramp to trade any of the other Synths offered on the Synthetix Exchange.
In return for collateralizing SNX, stakers earn rewards based on the fees generated via the Synthetix.Exchange. Seeing as all Synths are traded on the Synthetix Exchange, the more Synths minted and used for any of the aforementioned use cases, the more fees SNX stakers stand to earn from trading fees.
The collateralization ratio affects the number of Synths which can be minted at any given time. As it stands today, the minimum collateralization ratio for Synths stands at 750%. If the ratio drops below 750%, fees will be unclaimable until the ratio is brought back to 750% or above. The purpose of this mechanism to ensure SNX holders maintain the network’s collateralization ratio as well as keeping stable Synth prices.
With all of that in mind, there’s a handful of applications built on top of the Synthetix protocol in order to make minting and trading Synths as easily and accessible as humanly possible.
Synthetix Exchange features
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.
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:
Synthetix is no third party involved in the trades. You can directly buy or sell the assets on this platform.