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investing crypto slo with more crypto gains what’s going on guys
synthetic genes are what we’re talking about tonight and tonight’s presentation
is the synthetics Network token snx full tutorial so let’s get right into it and
talk about synthetics and what exactly it is synthetics formerly known as Haven
is a crypto back to asset enables creation of on chain synthetic assets
since the synthetics is a decentralized payment network where users transact
directly in a price stable cryptocurrency those who use the stable
coin pay fees to those who collateralize the network compensating them for the
risk of providing collateral and stability so in a nutshell what is it
snx is basically a DAP on steroids it is a collateralized debt position
that runs on the theorem network alright let’s get into it
let’s look at some of the characteristics and important things
about SN X first and foremost coin count there’s a hundred forty five million ish
circulating and supply and total supply is a hundred fifty-one million so in my
point of view this is a low count this is a low total supply coin compared to a
lot of the other coins on the market that have billions in potential
circulation fifty-two ragrange up to a dollar six like I said at the time of
this video it’s a little later tonight it’s actually a dollar nine so this is
really kind of totally moon up in the last couple weeks so other than that
what exchanges mainly it’s coup point and we use a thing called yuna swap
which allows us to convert from one coin to another of like primarily ease now
snx is an ER c20 token that means it runs on
the a theorem network so you do have those gas fees associated with making
moves related to this coin now we’ll snx main net ID not sure I’m
not sure what their plans were it would be sweet if they did because then we
could get maybe like the speed of Tron or something implemented into it it
would be a pretty cool scenario for that to happen
so as you can see in this last year it’s definitely had some very solid
gains and this is in a bear market keep in mind so speculatively can’t complain
couldn’t ask for more from a coins performance alright so the next thing
we’re gonna do is we’re gonna do a 30,000 foot overview and you’re like
well why are you approaching it this way well we’re gonna do the 30,000 foot
overview so you can kind of let this whole concept of decentralized finance
marinate in your brain because it’s a lot to take in and a lot of the videos
that I’ve seen relating to snx the complexity level is kind of high or
they’ve got a white board and I’m trying to break it down into multiple phases so
that it’s a little easier to understand so I’m gonna do the 30,000 square the
30,000 foot overview I’ll do the detailed overview and then I’m gonna
actually do a snx transaction and show you the full the full process of how you
would get in on this if that’s what you decide to do now first and foremost let
me put a warning out there this is a complicated decentralized finance system
it is early in my opinion in this and part of the reason why it hasn’t totally
exploded yet is that there is a level of complexity
to it but once you get it broken down into its basic elements it’s not too bad
at all alright so I am basically spent a little time and built the snx 30,000
feet overview flow chart and you’re like oh this is a lot to take in a lot to
take in so let’s start from the beginning
first and foremost the 30,000 foot overview assumes that you already have
some snx token and you get this on ku coin or using Eunice hua you’re then
gonna go to the synthetics Network and you’re going to stake or freeze you’re
putting it onto the blockchain snx as a collateral for a small loan this loan
value would be thirteen point three three percent of the snx value in this
what this does is this generates a stable coin called s USD okay so if you
had a thousand dollars market value of SN X and the system basically determines
that for you and you staked or froze those coins you
would have $133 loan so moving on your s and X is staked and the s USD is created
and you now have a debt position on the theorem blockchain so you use this s
ussd and you go to the synthetics exchange so this is an exchange and you
buy a synthetic or synth asset like gold Bitcoin East and here’s the rub it can
be long or short okay so you’re like wait a minute what do you mean it’s a
synthetic asset so a synthetic asset basically the synthetic or virtual asset
tracks the price of the real asset so basically there is a thing called the
price Oracle and this Oracle is constantly collecting prices from the
market and when you buy your virtual asset like
I said there’s a ton of assets available goal anything you want you can long or
short it the long ones gonna start with an S the short you’re going to start
with an eye which means inverted inversion right okay so remember we
staked our thousand dollars worth of snx we froze it and minted these stable
coins okay this ERC 20 stable point then we use that stable coin and we go and
buy a synthetic synth asset on the exchange so now let’s say I wanted to
buy some virtual BTC I bought a hundred thirty-three dollars worth of BTC and
you’re like wait a minute so I’ve got my s and X frozen I created a stable coin
and now I own a synthetic asset so do you see what’s happening here we are
we’ve created a hedge or we’re using a loan to buy a synthetic asset which
tracks the price of the real asset and then okay and you’re like well what if
okay so let’s say I bought that Bitcoin and Bitcoin moons all of a sudden I can
actually then sell my synthetic asset for s USD and then I can do whatever I
want with that s USD I could pay back my debt position if I wanted to exit or I
could go to like you know swap buy more SN X or I could mint more s USD with my
profits so that’s kind of the question over here how do I make money well a
couple ways potential gains from s and X price of speculation that’s not
guaranteed of course your virtual asset your synth asset increasing or
decreasing depending if you’re long or short obviously if it goes the correct
way so almost think of it is like a margin account and you capture that
spread between the actual value and the value and then here is something that’s
sweet and the dot people love this you’re getting
which are actually paid as fees of 1% a week and those are from network activity
of people buying and selling this that whatever right so you get that 1% now
there is a rub on that 1% and that is it is held in a rolling 12 month escrow so
you’re gonna get paid 1% but is paid as more snx the snx is locked up for 12
months but once that 12 months expires you can unlock it and do whatever you
want if you wanted to go back here Rhys take it get create more s USD and then
buy a synthetic asset now here’s another thing if the s and X price increases so
back over here your debt collateralization ratio of 13 point 3 3
percent or 750 percent is going to change what that allows you to do is you
can actually mint more s USD from the price gains on SN X so this is going to
begin to make more sense so really breaking it down into two or
three steps you have your s NX you’re staking it freezing it your and you’re
getting a small loan and that loan is given to you as a stable coin you use
the stable coin to buy a synthetic asset that’s pretty much it so let’s move on
to the detailed flowchart of how you do this okay the next step the synthetics
flow the detailed chart so this is kind of the detailed how-to now with that
being said it is a good idea so like maybe just go in with like 50 bucks or a
hundred bucks just to play around with the network when you do decide to start
doing this now I’m gonna leave very detailed instructions in the description
as well as links to all these flowcharts and resources and if you have any
questions please post them below and also I will have a link to the white
paper which will get a little more technical but I do believe for a lot of
people it’ll probably easiest just to get into
it play around a little bit and then go back and read the white paper or read
the white paper and then reread it later because it’s like I said there’s a lot
of steps but once you understand it you’ll understand the genius of this
whole network so first and foremost we start so we start we and install the
meta mask Roma theorem wallet this works in Google Chrome
pretty standard link in the description install that send some eath from air
exchange like coinbase finance whatever to your meta mask a theorem wallet the
next step is you have to buy some snx you can get it on KU coin they have kind
of the highest volume at the moment or you can use a yuna swap io which allows
you to install poins however the fees are gonna be a little higher there but
if you’re just doing a small basis and want to do it quickly then you know it’s
not so bad the next step is you’re gonna go to the s NX mint or dap that’s a mint
or synthetics dot io once again link down below this is where you actually
will mint your stable coin you’re basically wint the point where you’re
taking that loan and that loan comes to you as a stable coin and you’re staking
your s NX so stake your s NX mint to s USD and you’re getting thirteen point
three three percents or a collateralization value of seven hundred
fifty percent of your s NX of value so if you have a hundred dollars worth of
SN X you’ll be able to you will get $13.30 of stable coin okay next we’re
gonna go to the next change and we’re gonna buy a synthetic synthol asset I
use that term interchangeably synth or synthetic asset it’s just basically that
a sore eye asset personally keep it simple maybe just get a little BTC as
long or short that’s up to you do your own research and that’s at synthetics
exchange synthetic asset can be anything long or short long start with s shorts
start with an eye for inverse okay so now you’ve got your SN x-u froze it you
created a stable coin and you went and bought some synthetic asset and you’re
like when lambo not quite yet alright so what you need to do is
periodically go back to the mentor and check your collateralization level the
mentor will tell you if you’re at the 750 percent level okay now if that
shoots up to eight hundred percent nine hundred percent you you actually may
want to mint some more stable coin and loop in your gains so you’ve had some
gains so basically as SN X goes up and down you can capture these trades on
basically by minting more s USD okay on the mentor of collateral is above 750
you can mince more s USD and repeat the process
alright every week you need to go and collect your dibs dibs bitte so this is
what I was talking about those are the div fees of s and X that are held in
escrow for twelve months so it’s a twelve months but this shows you the
long-term viability of this this NS s and X remains in escrow for twelve
months in which will become claimable be sure to claim your reward or can expire
so if you don’t check this thing every two weeks at least at a minimum twice a
month you can lose gains so make sure you’re going back there and like I said
all show you what I’m talking about here soon if virtual asset goes up or down
and is profit you can sell some of it back to s USD for profit or you can
trade it for a more virtual asset so that’s completely up to you or you can
keep your collateralization level higher at the moment to reclaim your s NX
you’d have to sell some your virtual asset back as USD now remember if you
did $100 we go 13 dollars so in order to unlock those S&X from the fries and
claim them you have to pay back your debt when you pay back your debt that is
lost that fee is lost that 13 dollars will be lost so the incentive is to keep
your snx frozen so that’s kind of part of the genius of the system of keeping
that closed loop with a stable coin it’s just pure genius so now let’s actually
go and do a transaction right so let’s do a transaction like I said I’m
assuming you have the meta mask installed right inside your Google
Chrome browser and I’ll leave a link down below for that as I mentioned
earlier there’s the synthetics white paper November it’s just updated it
looks like so like I said it gets a little thick but once again kind of have
to let this marinate in your brain watch the video a couple times read the white
paper and you’ll begin to understand this and basically just defy finance and
it’s just this is going to be the future of a lot of things so now and another
thing I didn’t tell you talk about was the synthetics dashboard so there’s
actually this nice handy dashboard that you can go to at any time you see the
khyber networks number one volume COO coin gate dot IO liquid and like I said
you can also use you know swap I personally was using COO coin and
typically you can get it within a penny of whatever market is so it’s pretty
liquid so it’s not too bad and like I said if you’re on ku coin click on
markets and you do a search as an X sin x BTC so
basically you would buy this like any other ERC 20 coin and then basically
after you bought it you would send the coin to your meta mask wallet now let’s
assume you know how to use meta mask as I mentioned before you also have the you
know swamp option protocol so if I had 1/8 and then I could select the token
snx okay that’s gonna get me a hundred seventy-three snx so yeah it shows you
what the exchange rate is so not very difficult if you don’t have a KU coin
there’s no ml KYC or anything with the you know swap so it is an easier way to
get in to it if you have to do that so with that being said let’s start our
transaction we assume we have some s NX in our wallet so the first step really
is to go to the Minter and when you get to the mint or you arrive there’s a
little tutorial stuff telling you what it is
why stake blah blah blah what are the risks and then you click over here on
meta mask and you’ll see we are on the minting UI this is one of the primary
you is that you will use and you can see right now my debt ratio is seven hundred
eighty seven percent so I am over my 750 so in a way that’s a good thing I’m
gonna go ahead in a mint my stable coin so when I meant the stable coin it
stakes or freezes your snx in the contract on the blockchain and then it
mints my my stable coin so Ryan click on mint
and you’re like well I don’t know how much two minute well it’s pretty simple
you just hit max and it’s gonna do the math for you okay so it says I’m gonna
mint $17.49 worth of s USD stable point so I hit mint accept this on the thing
and then the transaction is in progress so I’m gonna wait for that to come so
that is how you stake so then over here you see I have all my dynamics you have
basically what your current Collider is a ssin level is your debt ratio what my
s and X is worth how many I have and then you have your debt okay and then
let’s just say I can have three hundred three hundred fifty three dollars so if
I wanted to take my SN x to market right now and sell it I would have to pay back
that three hundred fifty three dollars okay so that’s kind of what that happens
okay also on this screen we have the escrow system so you can see from my
first bit I had like like I said a couple hundred shares I got ten point
five four that’s my one week one percent as I say and that is locked until
November twenty 20 at which point I am vested and I could claim it okay has
your all your transactions that the Depot deposit USD and the queue to be
sold on synthetics exchange for eath so you can also sell your s USD that you
mint so this would be another another way you could make gains is let’s say
your synthetic asset goes up and you’ve got that gap you could sell some of it
for s USD and then you could liquidate it on the mark
so while we wait for that to confirm and you can see it’s still pending okay so
after I get that I’ll receive that s USD which will show up in my meta mask
wallet and in order to see that basically you have to add you have to
add some the contract number to your meta mask wallet and then you can see
the s USD now this is an important note you you there is liquidity for s USD
outside of this platform so when you when you get that s USD you could do
anything you want with it technically when I meant this s USD I
don’t have to go buy a virtual asset right I could go liquidate it but
remember you still have to pay back your debt down here so okay so the next step
is to go to the synthetics dashboard and by a virtual asset so connect your
wallet meta mask as always it’s going to grind around okay so there’s two modes
there’s basic mode and pro mode pro mode is a little more complicated you can see
some of the trading pairs and stuff down here go back to basic mode so this is
they’ve tried to make it as simple as possible so remember when I said we
staked our s NX and we got s USD that’s what we’re we’re gonna basically get
okay so over here I’m gonna select my s USD and then this is where you decide
which asset you want to buy so you can see these assets here okay so if I
wanted Bitcoin okay s PTC that’s what I would select so there is my virtual
Bitcoin so and then the easiest way to do it is hit trade max okay and then we
hit trade max it’s going to fill that information and here
and that and then you’re gonna confirm the transaction and then you own some of
that synthetic asset now there’s things to keep in mind your
synthetic asset that’s your job to keep track of if it’s going up or down
but ultimately ultimately an important thing to keep in mind here is that let’s
see let’s go back to synthetic dashboard we gotta go back to the mentor the most
important thing to keep in mind is your collateralization level is based on the
market price of snx not your virtual asset your virtual asset is kind of like
a freebie where you’re trading it okay so let me simplify this again so you
give me some collateral I give you a loan
and then you take that loan and then you try to open a lemonade stand if that
lemonade stand makes money you could pay your loan back quicker or if the
lemonade stand loses money you it’ll take additional resources to pay your
loan back so that’s kind of the idea the virtual asset is actually a hedge on the
core asset wishes your snx so and then as this price changes like I said it’s
going to change your clatters a shin level so the most important thing you
can do is check in on at the mint or at least you know initially you’re probably
gonna check it several times a day just because you know you’re you know you’re
like where’s my stuff you know so like I said oh and then here was your claim
where you claim your rewards okay and remember how I said you get your 1% it
shows up here so yeah so that’s the most important part is you keep it on a
collateral a shin level so if you you know if this debt
ratio gets out of hand then your snx is locked until you’re able to pay this
debt back so ultimately you’re gonna have to have enough s USD to pay this
debt back so make sure you don’t over extend yourself so that’s pretty much it
I’m probably gonna have a secondary tutorial on this talking about the more
advanced concepts once people kind of understand the basics of this but
ultimately you’re staking a coin as collateral you’re getting a stable coin
as a loan you’re buying a virtual asset which you hedge to go up or down you get
divs for being part of the network and being frozen and this whole cycle just
continues and like I said the current market cap is 150 million they’ve
literally added 50 million dollars in the last like last couple weeks it was
crazy so like I said it’s it’s a pretty pretty
pretty hot platform I don’t see any holes in it right now other than the
fact that the UI is a little complex and you’re going to two different X you’re
going to the exchange to manage your virtual asset and you’re using the
mentor to mint and claim your rewards so that could be a little confusing or
overwhelming but just follow the steps and like I said I will write the steps
out in the description of the video too and my intent is to present this in
three or four different ways so that hopefully it reaches you and you can
have a basic understanding of this and how this defy network works so hope you
enjoyed tonight’s video look forward to more videos on SN X it’s a very
interesting platform with a lot of potential in my opinion this is crypto
so if you’re not talking gains then we’re not talking