Synthetix V3, lessons learned, SNX staking, driving adoption | Kain Warwick | Fundamentals ep.62

Oskari Tempakka

Article hero image

In this episode of the Fundamentals podcast, I’m joined by Kain Warwick, the founder of Synthetix – a derivatives liquidity protocol providing the backbone for derivatives trading in DeFi.

Synthetix is built on Ethereum and OP Mainnnet. How it works is that synthetic assets, and associated products, are collateralized by stakers via the SNX token, which when locked in a staking contract enables the issuance of synthetic assets, called synths. This pooled collateral model allows users to perform conversions between synths directly with the smart contract, avoiding the need for counterparties.

Listen to the episode:

In this episode with Kain, we discuss the initial vision behind Synthetix and how V3 aims to fulfill this goal, we cover the lessons learned along the way, recap the fundamentals of Synthetix’s economic model and discuss the state of revenues, inflation, SNX staking, and maintaining the general health of the protocol. We also speak about how Synthetix is currently positioned within the market and where they see the biggest opportunities, increasing demand for trading on Synthetix, how the current tech stack will scale, the core contributors behind the project, current drivers and challenges, and more.

Synthetix's dashboard on Token Terminal:

00:00 Introduction
The initial vision and goal behind founding Synthetix
The venture case for Synthetix
06:13 Lessons learned that have led to the development of V3
10:14 How V3 fulfils what Synthetix set out to achieve in the early days
13:45 The effects of evolving into a permissionless liquidity layer
18:24 Synthetix’s economic model
23:07 SNX staking: maintaining the health of the protocol
25:08 SNX staking: encouraging all SNX holders to stake their tokens
27:02 SNX staking: introducing new collateral assets
28:24 Synthetix’s current user base & attracting new traders
30:52 What assets does Synthetix have a competitive edge for?
35:33 Driving adoption: user experience vs. number of assets listed
36:52 Is an optimistic rollup’s performance enough?
Building liquidity infrastructure and user-facing products in parallell
43:03 The team behind Synthetix
45:56 Kain’s role at Synthetix
48:04 The current state of revenue generated on Synthetix & thoughts on how it will develop
52:04 What metrics and KPIs are best suited to measure/value derivatives exchanges?
55:30 Are token incentives an expense for Synthetix?
59:05 The biggest opportunities for Synthetix in the coming years

The authors of this content, or members, affiliates, or stakeholders of Token Terminal may be participating or are invested in protocols or tokens mentioned herein. The foregoing statement acts as a disclosure of potential conflicts of interest and is not a recommendation to purchase or invest in any token or participate in any protocol. Token Terminal does not recommend any particular course of action in relation to any token or protocol. The content herein is meant purely for educational and informational purposes only, and should not be relied upon as financial, investment, legal, tax or any other professional or other advice. None of the content and information herein is presented to induce or to attempt to induce any reader or other person to buy, sell or hold any token or participate in any protocol or enter into, or offer to enter into, any agreement for or with a view to buying or selling any token or participating in any protocol. Statements made herein (including statements of opinion, if any) are wholly generic and not tailored to take into account the personal needs and unique circumstances of any reader or any other person. Readers are strongly urged to exercise caution and have regard to their own personal needs and circumstances before making any decision to buy or sell any token or participate in any protocol. Observations and views expressed herein may be changed by Token Terminal at any time without notice. Token Terminal accepts no liability whatsoever for any losses or liabilities arising from the use of or reliance on any of this content.

Stay in the loop

Join our mailing list to get the latest insights!

Continue reading

  1. Changelog #004
    Changelog #004

    Changelog #004

    This week, we’re excited to announce our full data-pipeline integration with Immutable zkEVM! Additionally, we shipped some important data changes and new metrics for Aptos, Aave, Jito, Arbitrum, Uniswap, and more!

  2. Token Terminal brings Immutable’s onchain data in front of 300,000 institutional customers
    Token Terminal brings Immutable’s onchain data in front of 300,000 institutional customers

    Token Terminal brings Immutable’s onchain data in front of 300,000 institutional customers

    Token Terminal has completed its integration of Immutable zkEVM, Immutable X, and Immutable Orderbook (“Immutable”) to enable institutional-grade onchain analytics for the Immutable ecosystem. This integration improves the accessibility of Immutable’s onchain data to enable more informed decision-making for all stakeholders in the ecosystem.

  3. Analyzing the Evolving Blockchain Landscape With VanEck
    Analyzing the Evolving Blockchain Landscape With VanEck

    Analyzing the Evolving Blockchain Landscape With VanEck

    Matthew Sigel, Head of Digital Assets Research at VanEck – a global investment management firm with over $100 billion in assets under management – joined us to discuss the current state of blockchain fundamentals.