The lockout volume exceeds $100 million, but Synthetix has these problems.

Recently, the data of DeFi products Synthetix has been very beautiful, with a lock volume of up to 140 million US dollars, which has surpassed the familiar Compound.

According to Synthetix investor Framework Venture, its positioning is currently decentralized BitMex.

However, according to the actual experience, Synthetix is ​​more like a decentralized version of the CFD exchange, and because its lifeline lies in the issue of the token price, it has the feeling of early Fcoin.

With Synthetix, you can trade with Bitcoin fluctuations without holding Bitcoin, and according to Synthetix's own statement, in addition to digital currency, you can trade gold or some Apple stock in the future.

The specific operation is like this. If you are the holder of Synthetix token SNX, you can exchange the 750% excess amount with the stable currency SUSD issued by its mortgage agreement, which is similar to Maker DAO. The difference is that Excess mortgage level and collateral liquidity.

When you hold the SUSD, you can redeem many other synthetic assets, such as sBTC, sETH, sTRX, etc. directly through Syntex at Synthetix. If you are an air force, you can exchange iBTC, iETH and other assets. When the price of these mainstream assets declines, you can get the corresponding difference in US dollar income.

That's why I say that Synthetix is ​​not the same as BitMex. Trading on BitMex or Dex is a physical transaction, and liquidity is provided by market makers and other traders.

And trading on Synthetix is ​​based on the quotation machine and your quotation, directly exchanged at the current price in the mortgage pool.

The liquidity of the mortgage pool is directly linked to the SNX price.

When SNX prices began to fall, Synthetix could easily fall into a spiral of liquidity deaths: prices fell, tradable assets fell, trading volume shrank, and SNX prices continued to fall. Once collapsed, Fcoin Super Mario returned home.

Of course, from the current development of Synthetix, the price is currently in a positive cycle, and the SNX price has nearly doubled in the most recent month, which means that Synthetix's trading liquidity is multiplying.

At present, most of Synthetix's traders are long, and Everest has already contributed 60w US dollars to the platform.

In addition to the possible price death spiral, another problem that Synthetix currently faces is low capital utilization. Although its lockout has exceeded the compound, due to 750% over-collateralization, the actual tradable assets must be on the lockout amount. Great discount.

This is also a last resort. In the traditional CDF market, brokers offering CDF will basically hedge their risk (buy or sell physical goods) for each transaction of the user, in case the extreme market fails to pay the user price difference. Synthetix, the risk control for this is 750% over-collateralization, your counterparty is the lock pool of SNX.

In response to these problems, Synthetix is ​​gradually improving. For example, with MakerDAO's recent support for multi-collateralization, Synthetix will support Ethereum in collateral in order to get rid of its dependence on platform currency, which will lower the user's usage threshold.

The addition of more liquid mortgage assets will also solve the current problem of high mortgage rates to a certain extent.

Summary: Synthetix gives a derivative trading market with no counterparty risk (in the case of sufficient liquidity of the mortgage pool) through the design of synthetic assets. There are many markets that can be cut in the future, but due to the design of platform currency mortgage The advantage of letting no counterparty risk arises, and the funds that appear in extreme market conditions cannot be redeemed, and there is still much room for improvement.

(Finish)