Original title | Take SNX, sUSD and Synths to dig a “gold mine”!
Before, we introduced the use of Synthetix protocol, including casting synthetic assets, shorting, options, and so on. In fact, in addition to using Synthetix to invest in various assets, users can also obtain income through mortgage mining and providing liquidity. The Synthetix protocol design is more complicated, and the asset types and platforms involved are relatively wide. Today, I will sort out these hidden “gold mines” for everyone.
SNX token mortgage mining
The https://staking.synthetix.io/earn page shows the liquidity mining opportunities currently provided by the official alone and with partners. These incentives are all voted out by the community autonomous DAO organization,
For Synthetix’s mortgage mining strategy, we have a detailed introduction in “Teach you the basic functions of Synthetix”. Users can stake SNX tokens and mint stable coins sUSD, thereby obtaining transaction fee rewards and SNX rewards. The reward details can be viewed at https://staking.synthetix.io/earn/claim, and the current rate of return is about 24.2% (the value will fluctuate with changes in the entire network).
This is the most basic incentive measure, which aims to encourage users to cast sUSD to participate in the casting and trading of synthetic assets, and to provide transaction depth for the overall network.
Stake SNX tokens on Yearn
Yearn.Finance launched the SNX token pledge pool on May 20th. Users do not need to manage the debt pool and collect rewards every week. Instead, they entrust the SNX tokens to Yearn.Finance for management, paying an annual management fee of 2% and 20% profit share. According to the Yearn.Finance official website, the current annualized income of SNX pledge is 4.77%.
Short sBTC and sETH incentives
We have introduced the short-selling process in detail in “Teach you how to play Synthetix basic functions”. In order to encourage users to participate in short-selling to improve the platform’s excessive tilt towards long positions, Synthetix provides SNX token incentives for users who short sBTC and sETH Users who participate in short-selling transactions can apply on https://kwenta.io/shorting. The APY for short sBTC is 72.91%, and the APY for short sETH is 65.83%. Users can hedge 1:1 long BTC and ETH on a centralized exchange, and the SNX short reward provided by Synthetix is a risk-free arbitrage return.
In addition to pledge mining and short-selling rewards, users can also get incentives by participating in the liquidity mining of synthetic assets such as sUSD and cooperative project tokens.
Liquidity mining
We can see the current executable mining incentives and the duration of the incentives on the https://staking.synthetix.io/earn page. The current liquidity mining incentives outside the Synthetix platform include the liquidity mining of new US stock synthetic assets on Balancer, the liquidity mining of sUSD on Curve, and the incentives of DHT liquidity providers on Uniswap.
U.S. stocks synthetic asset liquidity mining
Synthetix launched the synthetic asset sTSLA representing Tesla stock in February 2021, and in April of the same year launched the synthetic asset sFB, sAAPL, sAMZN, sNFLX, sGOOG, sMSFT and sCOIN representing FAANG stock. At the same time, users are cooperating with the defi platform Balancer to provide liquidity for the above-mentioned assets and the sUSD liquidity pool, and both can obtain nearly 100% annual mining rewards.
Let’s take sGOOG (synthetic assets representing Google stocks) as an example. Users can add liquidity to the sGOOG/sUSD liquidity pool on the Balancer (you need to maintain a 1:4 ratio of the value of the two to add liquidity) to get SNX reward.
After providing liquidity and obtaining BPT tokens, you can claim rewards on the official website.
Liquid mining on Curve
Users can provide sUSD liquidity for rewards in the sUSD pool (DAI/USDC/USDT/sUSD liquidity pool) on the trading platform Curve. The website for pledge and reward is https://curve.fi/susdv2/deposit.
In addition, users can also obtain crv liquidity mining income by staking Synthetix’s synthetic assets sBTC, sETH and sLink on the Curve platform.
DHT liquidity mining rewards
dHedge is based on the asset management agreement established by Synthetix. Users can obtain DHT and SNX rewards at the same time by providing liquidity for the DHT/sUSD trading pair of dHedge token DHT on Uniswap. It should be noted that the relevant manipulation needs to be performed on Uniswap V2.
After successfully adding liquidity and obtaining LP tokens, you can apply for DHT and SNX rewards at https://staking.synthetix.io/earn/DHT-LP:
Synthetix is gradually concentrating all related entrances and data related to staking and claiming rewards to https://staking.synthetix.io/. The latest developments and data adjustments regarding SNX pledge mining and related asset liquidity mining are It can be viewed on the website.
Mining in the loan agreement
Synthetix also cooperates with lending agreements such as AAVE, and providing depth for the fund pools of these lending agreements can also earn benefits.
SNX lending on AAVE
At present, the annualized return of SNX deposit interest on AAVE is 2.61%, while sUSD is 2.04%. For details, please refer to https://app.aave.com/deposit.
SNX lending on Celsius
Celsius is another leading lending platform. At present, the annual reward of pledged SNX is close to 30%, the pledged value is as high as 222 million US dollars, and the loanable ratio is about 50%.
Relevant data can be viewed in the Celsius lending market https://www.stakingrewards.com/earn/synthetix-network-token.
summary
As a veteran synthetic asset project, Synthetix has developed a relatively mature ecosystem after several years of development. However, as the DeFi ecosystem continues to enrich, Synthetix will continue to participate in and integrate the new DeFi protocol. At the same time, rewards for participating in related DeFi agreements will be given through the governance of the DAO.
