Huobi x Synthetix (SNX) AMA was a great success.
In the first section, we had an introduction of Jordan Momtazi and Synthetix (SNX):
Jordan Momtazi is one of the founding members of the Synthetix team and help lead operations for the project. He has experience in companies like PayPal and Singtel mostly around corporate strategy and business development. He has been full time in crypto for 3 years now and it’s by far the craziest (in a good way) thing he has ever done.
Synthetix is a derivatives liquidity protocol on Ethereum that enables the issuance and trading of synthetic assets
We incentivize liquidity in a decentralized way and have bootstrapped synthetic asset liquidity from zero to over $1B USD last month.
In the second section, our CM asked Jordan Momtazi some important questions related to the project and its development.
🔹1. Synthetix is a complex project. What is it and what role does SNX play in it?
Synthetix is a protocol for issuing and trading synthetic assets on Ethereum. These synthetic assets are collateralized by the Synthetix Network Token (SNX) which when locked in a staking contract enables the issuance of synthetic assets (Synths). Each synthetic asset (or Synth) is an ERC20 token which tracks the price of an external asset; for example each sUSD token tracks the price of the US dollar. A wide variety of Synths can be issued, including fiat currencies, cryptocurrencies, commodities, and inverse indexes. The derivatives space is a very large opportunity in crypto and in the traditional financial world is multiple times larger than the spot markets. SNX plays a key role in supporting the network of assets and in doing so captures all the value generated inside the system.
🔹2. What problem does Synthetix solve?
We offer tokenized assets across multiple asset classes in a purely permissionless way which has never been done before on Ethereum. This is solving for people desire to get price exposure to assets without centralized entities having custody or control of their value. Our system is entirely censorship-resistant and has the potential to address the many people around the world who don’t have local banking or financial services infrastructure. On-chain Derivatives are a very large market for both sophisticated traders but also those aren’t currently being served by the banking
We are ultimately offering crypto assets, commodities, indices, forex and in the future equities…..all inside a fully onchain and trustless system.
🔹3. Stable coins have been playing a big part in DeFi, what is stable coins and why is it so important in DeFi?
Yes, they are a growing piece of crypto and DeFi- Stable coins are essentially tokens that track the price of a real world currency
It’s mostly focused on USD as it’s the reserve currency of the globe.
Stable coins usage has been increasing across crypto as a way to replicate traditional financial scenarios and help support a more sophisticated hedging strategy.
It’s also being used in remittance and other payments related use cases as a replacement to traditional cross border payments
sUSD is the native stablecoin of Synthetix and is an important piece of our system and also DeFi.
🔹4. How does Synthetix ensure the highest security for its protocol?
As more value is being sucked into DeFi it’s critical that teams spend resources auditing code and stress testing designs. Synthetix audits all it’s mainnet code and many of the contracts have been reviewed by 2 audit firms for additional security. An advantage in having a large community like Synthetix, is we also have many eyes looking over the code when it’s released.
There have been minor bugs found by community members and we have rewarded them with bug bounties! A Crowdsourcing solution is actually a very powerful feature of decentralized systems!
🔹5. What do you guys think are the main differences between DeFi vs traditional finance vs FinTech?
Infrastructure and the rules associated with that infrastructure. Fintech is a great leap forward but still constrained by existing infrastructure. DeFi is built on a completely new stack and can literally play out any set of agreed upon rules. This is really powerful.
🔹6. How are the plans shaping up for marketing and building a strong core community which is essential for any new project in the crypto industry?
We actually have one of the strongest communities in all of DeFi! Our discord is the most interesting place to visit if you want discussions on everything from economic design, product development, awareness and general degen trading talk :) We encourage you to come join the conversation- https://discord.gg/z5hJpuq
The community call themselves Synthetix Spartans! They are passionate about the project and there is a sense that we’re all contributing to move the project forward!
🔹7. Tell us about your plans for 2020, what are you currently working on, and are you going to expand?
Always lots going on in Synthetix!
We have a meme…..#expressshipping
We launched a bunch of big products this year and made many improvements at a protocol level. Binary options were a significant launch and we’ve recently done a full visual rebrand too. Some of the big upcoming releases include Synthetic Futures which is only 4–6 weeks away! This allows leverage which is desirable atm- It’s our attempt at becoming a decentralised Bitmex
We also will be migrating many of our functions to the OVM L2 solution. Which is a big deal for platform speed and trade execution. This will make synthetix exchange much more comparable to a centralized exchange from a user perspective. Needless to say this is a huge shift in UX and is something we’re very excited about.
Lastly we have some cool assets being released. One I can talk about is synthetic OIL (sOIL). We have many more in the pipeline :)
🔹8. How many projects have built on Synthetix?
The list is growing!
Some examples are dHedge which is a Mimetic (copy trading) hedge fund platform- https://www.dhedge.org/
xSNX which is a set and forget funds management platform optimised towards staking native tokens- https://xtoken.market/
And Marqet which is launching soon! It’s a margin trading platform that leverages sUSD as collateral and uses AAVE’s credit delegation product to offer margin for traders who want it.
🔹9. Synthetix has seen a big increase in users over the past 12 month, why is that?
The yield farming aspect played a key role in boostrapping the network. We were able to drive the desired behaviors through the right incentives and create a network of users who believed in the product and the vision.
We’ve grown from 500 stakers late last year to over 5,000 currently.
And consistently rank as one of the most highly used DeFi platforms.
Another reason is Synthetix has always been community first and grown firstly at the grassroots level. We never had large institutional backers and were always focused on product. It’s served us well and now we’re considered one of the most switched on communities in crypto.
🔹10. How can Huobi help projects like Synthetix?
Education and exposure to quality projects is a big contribution groups like Huobi can make. You have a large and experienced community and being able to speak to them and provide context on what we’re doing and the milestones being achieved is a huge win
Shout out to the Huobi folks out there 🙌🏼
In the third section, Jordan Momtazi answered 08 impromptu questions from the community.
🔹1. What are the beneficial Advantages of Synthetix Exchange?
Can you share 2–3 key features of Synthetix?
Zero slippage on trades and infinite liquidity.
🔹2. Why did you build Synthetix on Ethereum blockchain, why not another blockchain?
Composability- The ability to innovate inside the same sandbox is very powerful.
🔹3. How important is user community to Synthetix? Does Synthetix have a plan to expand and grow the community? What can users contribute to Synthetix?
Users have many ways to contributing. You can stake SNX and become a liquidity provider, you can participate in governance inside discord, you can submit proposals which are reviewed by the whole community and you can submit an application to the grantsDAO if you’d like to create some value for Synthetix ecosystem.
🔹4. What is Mintr? Could you explain how and what are the requirements to join SNX staking?
There is no requirement except holding the SNX to stake- You can visit Mintr and try it
🔹5. The oracle problem in Defi is a highly talked issue in crypto, How Synthetix faced this issue and How Synthetix Fix this Issue?
Yes the oracle problem is a large issue. We work with Chainlink on all of our price feeds and have been super happy with the partnership. They provide trustless price feeds for all the assets we need atm.
6. Which markets your project focusing now? And do you have plan bring your project to other markets?
Currently we’re focused on US and Euro but recently launched in Korea and now looking at more Asian countries.
🔹7. As I saw on Synthetix’s website, your project protocol uses an on-chain swap instead of an off-chain swap. However, scalability, sustainability, and interoperability are still big problems with permissionless blockchains. How will Synthetix resolve these without using the off-chain solution?
🔹8. If I want to use your service, is there any requirement when use your services (ex: kyc, countries restrictions…)?
The platform is completely open and permissionless.
In the last section, we had a quiz in which our community took active participation to end the AMA in a positive note.
After the AMA, we have received numerous positive feedbacks from the community, which motivates us to deliver more and more wonderful events in the future. Please join our official telegram https://t.me/huobiglobalofficial and stay tuned
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