Just read the latest @delphi_digital “Mirror taking on Synthetix”, which adds to a recurring conversation that I think mischaracterizes @synthetix_io's role in DeFi and the future of the protocol, so I thought I'd try to add to the conversation.
/thread
/thread
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This thread solely focuses on Synthetix, but I welcome any counterpoints from those more familiar with Mirror/Terra.
This thread solely focuses on Synthetix, but I welcome any counterpoints from those more familiar with Mirror/Terra.
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@synthetix_io is a pooled liquidity ecosystem which allows for issuing any synthetic asset or derivative with unlimited depth and 0 slippage.
It also provides a toolkit for projects to build on top of that primitive, which I believe is where real protocol value is derived.
@synthetix_io is a pooled liquidity ecosystem which allows for issuing any synthetic asset or derivative with unlimited depth and 0 slippage.
It also provides a toolkit for projects to build on top of that primitive, which I believe is where real protocol value is derived.
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What has come already and is coming soon from the core team and outside teams leveraging this primitive is cool af:
What has come already and is coming soon from the core team and outside teams leveraging this primitive is cool af:
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1. @dHedgeOrg is a hedge fund management platform using synths. Users can invest in funds with any amount of capital, while transparently seeing each fund's stated strategies, historical performance and current allocations.
1. @dHedgeOrg is a hedge fund management platform using synths. Users can invest in funds with any amount of capital, while transparently seeing each fund's stated strategies, historical performance and current allocations.
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What’s even cooler is the ability to create a derivative tracking a basket of these funds, so users can invest in a diversified set of them. All that talk about crypto bringing financial tools historically only available to the super rich to retail… This already exists today
What’s even cooler is the ability to create a derivative tracking a basket of these funds, so users can invest in a diversified set of them. All that talk about crypto bringing financial tools historically only available to the super rich to retail… This already exists today
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2. @kwenta_io is Synthetix’s exchange platform which allows users to trade (really mint/burn, as there is no order book) synthetic assets. It currently exists on L1, but will be launching on Optimism L2 as soon as @chainlink has their price feeds ready.
2. @kwenta_io is Synthetix’s exchange platform which allows users to trade (really mint/burn, as there is no order book) synthetic assets. It currently exists on L1, but will be launching on Optimism L2 as soon as @chainlink has their price feeds ready.
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It’s no doubt that trading on L1 has been very expensive. THIS is what accounts for low DAU numbers on the platform, and has nothing to do with debt pool management as stated by Delphi. Once fees are near 0 on L2, users will come. Oh, and token coming soon.
It’s no doubt that trading on L1 has been very expensive. THIS is what accounts for low DAU numbers on the platform, and has nothing to do with debt pool management as stated by Delphi. Once fees are near 0 on L2, users will come. Oh, and token coming soon.
9/
3. @lyrafinance is an L2-native options protocol, to be launched directly on Optimism. Admittedly I know little about options, so I’ll link some highlights from Lyra directly. Lyra will also be distributing a portion of tokens to SNX stakers.
3. @lyrafinance is an L2-native options protocol, to be launched directly on Optimism. Admittedly I know little about options, so I’ll link some highlights from Lyra directly. Lyra will also be distributing a portion of tokens to SNX stakers.
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4. @thalesmarket is a binary options and prediction market protocol currently under development. After launch they will migrate to Optimism, and then will bring sports betting on chain. They’ll launch a token along with the MVP with 35% of supply going to SNX stakers.
4. @thalesmarket is a binary options and prediction market protocol currently under development. After launch they will migrate to Optimism, and then will bring sports betting on chain. They’ll launch a token along with the MVP with 35% of supply going to SNX stakers.
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5. Aelin is a protocol in development which will allow anyone to raise a pool of capital to pursue a specific deal. This could be purchasing tokens OTC, access to a VC round, or any number of funding mechanisms traditionally only available to funds with large pools of capital
5. Aelin is a protocol in development which will allow anyone to raise a pool of capital to pursue a specific deal. This could be purchasing tokens OTC, access to a VC round, or any number of funding mechanisms traditionally only available to funds with large pools of capital
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Again, here’s a way to give retail financial tools which have historically been unavailable to them. This is just a small side project for now, but will also be dropping a token with a portion to SNX stakers.
Again, here’s a way to give retail financial tools which have historically been unavailable to them. This is just a small side project for now, but will also be dropping a token with a portion to SNX stakers.
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6. Not a standalone protocol, but Synthetix powers cross asset swaps through deep @CurveFinance pools by way of virtual synths, giving large trades the best possible rates with minimal slippage.
6. Not a standalone protocol, but Synthetix powers cross asset swaps through deep @CurveFinance pools by way of virtual synths, giving large trades the best possible rates with minimal slippage.
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This is possible because synths can be swapped for synths with 0 slippage across pools (think $XX sETH == $XX sBTC) and is where much of Synthetix’s volume comes from today.
Better explainer:
This is possible because synths can be swapped for synths with 0 slippage across pools (think $XX sETH == $XX sBTC) and is where much of Synthetix’s volume comes from today.
Better explainer:
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7. I’ve spoken to a few trading firms who plan to use long/short synths & futures as a hedge for arb and market making strategies across CeFi/DeFi platforms. 0 slippage is a huge advantage for these strategies, which will become more prevalent once everything is on Optimism.
7. I’ve spoken to a few trading firms who plan to use long/short synths & futures as a hedge for arb and market making strategies across CeFi/DeFi platforms. 0 slippage is a huge advantage for these strategies, which will become more prevalent once everything is on Optimism.
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This list is probably incomplete, but the larger point here is that there are incredible use cases for Synthetix’s unique functionality that have yet to be fully developed or even conceived, and new protocols are aligning their incentives with the greater SNX community.
This list is probably incomplete, but the larger point here is that there are incredible use cases for Synthetix’s unique functionality that have yet to be fully developed or even conceived, and new protocols are aligning their incentives with the greater SNX community.
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So, if you still think that Synthetix is just a synthetic stock trading platform and direct Mirror competitor, you’re unfortunately ngmi.
So, if you still think that Synthetix is just a synthetic stock trading platform and direct Mirror competitor, you’re unfortunately ngmi.
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Thx for getting this far!
@SNXified, @Cryptotoit, @nocturnalsheet or others - would love for you to correct anything I got wrong or add to the conversation
Thx for getting this far!
@SNXified, @Cryptotoit, @nocturnalsheet or others - would love for you to correct anything I got wrong or add to the conversation
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