On Monday (August 8), a very popular crypto analyst and influencer gave his reasons for recently buying “a bag” of $SNX, the native collateral asset of derivative liquidity protocol Synthetix.

Here is how Binance Academy describes Synthetix:

“Synthetix is a synthetic asset protocol that allows for the issuance of synthetic assets on Ethereum. You could think of a synthetic asset as a kind of derivative product. It gives you a way to get exposure to an asset without having to own it.But what can be a synthetic asset, or “Synth”? Well, almost anything that has a reliable price feed. Some examples are cryptocurrencies like BTC or ETH, commodities like gold and silver, and fiat currencies like USD. Even inverse Synths exist that track the inverse of the underlying asset, giving traders an easy way to get short exposure or hedge existing holdings and yield farming positions…

“The idea is that by using Synthetix, traders can get exposure to certain assets that don’t exist on-chain. Synthetix also allows for the creation of indexes like the DeFi index, which tracks the price of a basket of multiple DeFi assets…

“Synthetix works with overcollateralization – that is, each synthetic asset is collateralized by more value than it represents. Synths are created by users staking collateral (SNX) and minting a synthetic asset against it. In other words, each Synth is essentially debt against the posted collateral.“

Earlier today, Lark Davis tweeted about why he is bullish on $SNX:

Another crypto analyst seemingly bullish on $SNX is “The Crypto Dog”, who had this to say about it on August 6:

Kain Warwick, the founder of Synthetix, published a blog post on August 4, in which he delivered his half-yearly Synthetix perspective.

Warwick stated that currently there are four pillars of Synthetix development:

  • V2x: “The current system, aka, the never-ending story“
  • Perps V2: “Upgraded perpetual futures, aka, let’s pretend the V1 never happened“
  • V3: “The completely rearchitected system, aka, the solution to the world’s problems“
  • V3GM: “The new Synthetix governance module, aka, thanks for nothing Aragon“

Regarding Synthetix V2x, he said:

“Right now the goal of my life is to shut down development on V2x so we can focus on V3, I have been unsuccessfully spearheading this initiative since mid-2021. For some reason, the community keeps coming up with major improvements to V2x 🤦. Of course, they do! That is the entire reason we want to shut the thing down. It is now a Rube Goldberg machine, more duct tape than solidity. I’m told the community can expect pushback from the CCs for any further non-critical SIPs, I will believe it when I see it.“

As for Synthetix V3, he had this to say:

“… the SIPs that describe the changes are being rolled out and presented to the Synthetix community already. So far even some of the controversial changes I expected to create issues have been accepted fairly well by everyone… I luckily find myself in the enviable position of being unable/unwilling to retire until Synthetix is sustainable and therefore the last dinosaur defending the legacy decisions of the Synthetix community, please wish me luck…

“The point of this post is to provide an overview of the status though, and right now progress on V3 continues in spite of the distractions of maintaining V2x. Only a masochist would provide timelines in crypto, but it seems possible that V3 could launch this year. But this is highly dependent on freezing the scope of V2x. Unfortunately, much of this progress comes at the expense of the final pillar.“

Image Credit

Featured Image via Synthetix