Synthetix develops a blockchain-based payment network fueled by a stable coin aiming to combine all the benefits of a decentralized approach with the stability of traditional financial assets. In order to reach stability, the project implements a dual token solution that consists of a stabilized Ethereum-based utility token SNX and a reserve token Nomin to back it. Nomin is pegged to the value of 1 USD and is used to make transactions on the platform.
Previously known as Havven, the project was rebranded in November 2018, and now bears the name of Synthetix. It is fueled by a native ERC-20 cryptocurrency SNX.
On the Synthetix platform, SNX tokens serve to stabilize and collateralize the system, while their holders get the transactions fees. The size of payouts depends on their contribution to the stability of the Nomin token. SNX token holders place their assets in an escrow account in order to issue Nomins, as the total value of SNX in escrow is always bigger than the value of Nomins in circulation. The collateral ratio of nomins to SNX equals to 1:5. This helps to ensure that nomins can always be redeemed for their face value even if the price of SNX dramatically drops.
The Havven (Synthetix) ICO was launched on February 28th, 2018, and ended in a week on March 7th having helped the project’s creators raise the hardcap of 30 million USD. In order to participate in ICO, investors had to pass a thorough KYC (Know-Your-Customer) procedure and get whitelisted. 60% of tokens were distributed via ICO while 20% went to the Havven team and the rest was allocated for bounties, different marketing incentives, and the foundation. At the time of writing, the rebranded token SNX is available for trading on KuCoin and Cyber Network.
In August 2018, Synthetix announced its plans to switch to EOS in order to overcome the scalability issue inherent to all Ethereum-based projects. However, having spent several months on that, the team decided that the migration would turn out to be very costly for them, so they gave up this idea. At the time of writing, Synthetix still remains on Ethereum and SNX tokens can be stored on all ETH-compatible wallets, such as Metamask, MyEtherWallet, Trezor and Ledger Nano S.
The project was founded in Sydney, Australia, in 2017 when Tether (USDT) was the only viable stable coin in the market. The team is headed by Kain Warwick who prior to Synthetix managed to build Blueshyft, the largest cryptocurrency payment platform in Australia covering tens of millions transactions (primarily in Bitcoin). The platform allows to cash out purchases of digital goods and services and since its launch in 2014, it has grown to cover 1200 locations across the whole continent.
Before joining Synthetix, Justin Moses, the project’s CTO has worked for 8 years as a Head of Engineering at various companies, including MongoDB, a leading cross-platform database system.
Synthetix’s board of advisors includes Doc.Ai CEO Walter De Brouwer, Blockasset Managing Partner Renqi Shen, ZK Labs founder Matthew Di Ferrante and many other experienced people with successful projects behind their shoulders.Read More