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January 17, 2023: Treatise of the Great $sETH πŸ™πŸ“–

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January 17, 2023: Treatise of the Great $sETH πŸ™πŸ“–

Why is Synthetix Ethereum outyielding LSDs?

crv.mktcap.eth
Jan 17, 2023
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January 17, 2023: Treatise of the Great $sETH πŸ™πŸ“–

curve.substack.com
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Earlier this month we highlighted how Frax was killing the staked ETH wars, along with everything else they touch. 8.4% is pretty tough to beat, right?

But before we get into sfrxETH… what’s this? A new challenger?!

Synthetix ETH is not a participant in the staked ETH wars, as they are a synthetic token and not an LSD. Yet if you’re just looking for ETH yield, you probably don’t care. So who or what is driving this yield?

Crypto boomers may recall as far back as two months ago, when Synthetix requested a parameter change for their pools..

crv.mktcap.eth
December 5, 2022: Splitting the Atom βš›οΈβš‘
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a year ago Β· 2 likes Β· 1 comment Β· crv.mktcap.eth

Surprise! Everything worked out exactly as intended. In late December, the team released Perps v2. Synthetix has been on cruise control ever since.

Twitter avatar for @synthetix_io
Synthetix βš”οΈ @synthetix_io
1/13 Get ready to experience the future of trading with SNX Perps V2! πŸš€ Perps V2 is now LIVE, featuring 5-10 bp trading fees and deep liquidity for traders. All tradable on fully decentralized trading frontends @Kwenta_io & @DecentrexHQ on @optimismFND!
8:59 PM βˆ™ Dec 22, 2022
424Likes182Retweets
Twitter avatar for @napgener
Sn/Fr-axgener 200x @napgener
Can literally trade $ETH perps on $SNX #DeFi 0.1% and 0.05% fees for maker/taker its lower than many centralized exchanges. alpha.kwenta.eth.limo/market/?accoun…
Image
Twitter avatar for @pythianism
Vance Spencer @pythianism
if you are trading on Huobi in the year of 2023 our lord instead of just using DeFi, which is now at feature parity with CeFi (if not better) I don't know what to tell you
4:48 PM βˆ™ Jan 6, 2023
25Likes3Retweets

Naturally, as users wise up to tools like aggregators, we’re seeing trading volume flowing to the best source. Increasingly, this is Synthetix.

Twitter avatar for @synthetix_io
Synthetix βš”οΈ @synthetix_io
Synthetix Atomic Swaps (aka cross-asset swaps) are seeing a volume uptick with increased DEX trading. The path to further volume generation is increased synth supply (deeper pools), lower fees on @CurveFinance, incentives for synth pools & additional aggregator support. Soon!
Twitter avatar for @0x_____________
themerge.eth πŸ¦‡πŸ”Š @0x_____________
Synthetix cross asset swaps are lowkey exploding @CurveFinance @synthetix_io https://t.co/zWT5EgQ0i1
10:22 PM βˆ™ Jan 15, 2023
106Likes28Retweets

In a good thread, Curve highlighted the effect of rising prices on the sETH pool utilization. Lately, Synthetix’s β€œatomic swaps” have become a highly efficient option for on-chain trading.

Twitter avatar for @CurveFinance
Curve Finance @CurveFinance
The actual price jumped made atomic swaps via Synthetix very good. This raised SETH pool utilization to a whooping 160%! (and SUSD pool is good, too)
10:25 PM βˆ™ Jan 14, 2023
75Likes9Retweets

The result of the market’s recent frenzy is that, at times over the past week, Synthetix has often ranked among the highest fee generating protocols for users.

Twitter avatar for @Rando144
rando ⬑ @Rando144
looks like $SNX on top again for revenue shared to tokenholders defillama.com/fees
Image
9:29 PM βˆ™ Jan 16, 2023
22Likes5Retweets
Twitter avatar for @adamscochran
Adam Cochran (adamscochran.eth) @adamscochran
Perps V2 barely rolled out, V3 not yet launched, and yet Synthetix is the protocol that puts the largest daily fees to holders in all of DeFi
Image
9:44 PM βˆ™ Jan 16, 2023
96Likes9Retweets

Make sure to read through the replies on the last tweet for some important context on how Synthetix works ^^

Unsurprisingly, spiking volumes has also led to skyrocketing user numbers.

Twitter avatar for @dunleavy89
Tom Dunleavy @dunleavy89
Synthetix daily active users up 4,500% YoY on the back of perps expansion
Image
7:05 PM βˆ™ Jan 14, 2023
199Likes28Retweets

Although, from a starting point of 10 to 23 users, it’s easy to juke the numbers…

Twitter avatar for @RudyKadoch
Rudy | Nested (🧩,πŸ¦‡πŸ”Š) @RudyKadoch
10 users they say @synthetix_io πŸ₯Ή
Image
10:56 AM βˆ™ Jan 16, 2023
24Likes3Retweets
Twitter avatar for @MattLosquadro
MattLosquadro.eth βš”οΈ @MattLosquadro
Do you guys ever think wow @synthetix_io has a pretty large ecosystem for 23 users? Pretty amazing to me tbh, devs are dedicated.
6:52 PM βˆ™ Jan 16, 2023
53Likes3Retweets

What’s really wild is Synthetix is just getting going. The Synthetix roadmap is extremely ambitious, and they have a tendency of executing. Here are some of the items in store for the year:

Twitter avatar for @William24931283
Wegathetix βš”οΈ @William24931283
2023 is the year. Few understand this. We are in the early stages. Things will get wild and steep quick for @Kwenta_io $KWENTA on @optimismFND $OP Incoming Cross-margin v2 @synthetix_io $SNX v3 @lyrafinance $LYRA partnership @torosfinance partnership! @SocketDotTech integration
Image
12:14 AM βˆ™ Jan 16, 2023
28Likes7Retweets

As well as several new markets on the horizon

Twitter avatar for @MattLosquadro
MattLosquadro.eth βš”οΈ @MattLosquadro
I've just posted my SIP to add new markets to Synthetix Perps. If approved, this SIP would add $BTC, $SOL, $AVAX, $MATIC, $LTC, $DOGE, $APE, $BNB, $ADA, and $NEAR to the supported perps markets Governance will debate, then oracles will be tested to ensure reliability. Soon!
Image
6:41 PM βˆ™ Jan 12, 2023
105Likes13Retweets

How might you capitalize on Synthetix? One way would be to look for Curve pools where you might consider serving as LP. Transactions routed through Synthetix are routed automatically through Synthetix’s various Curve pools:

Twitter avatar for @0x_____________
themerge.eth πŸ¦‡πŸ”Š @0x_____________
I love watching the cross-asset swaps come in, amazing collaboration between @synthetix_io & @CurveFinance
Image
8:49 PM βˆ™ Jan 16, 2023
22Likes1Retweet
Twitter avatar for @0x_____________
themerge.eth πŸ¦‡πŸ”Š @0x_____________
Synthetix cross asset swaps are lowkey exploding @CurveFinance @synthetix_io
Image
6:31 PM βˆ™ Jan 15, 2023
82Likes12Retweets
Twitter avatar for @DefiMoon
DefiMoon πŸ¦‡πŸ”Š @DefiMoon
Anyone watching Curve atomic swaps mooning?😍 $sETH - $ETH pool is @ 107.98% utilization today with $22.3m in volume! $SNX #DeFi $CRV
Image
Image
11:26 PM βˆ™ Jan 12, 2023
123Likes23Retweets

One way to profit off this uptick is to heed Curve’s call and be a liquidity provider.

Twitter avatar for @CurveFinance
Curve Finance @CurveFinance
Looks like cross-asset swaps with @synthetix_io get quite good volumes. Now need more liquidity!
Image
12:05 PM βˆ™ Dec 28, 2022
164Likes29Retweets

However, these fees tend to be rather low, so it may not be compelling outside of rewards emissions, which Synthetix is heavily incentivizing.

Therefore, you may instead prefer to stake $SNX directly on Synthetix, where 100% of Synthetix fees go directly to stakers.

Twitter avatar for @MattLosquadro
MattLosquadro.eth βš”οΈ @MattLosquadro
100% of the fees from @synthetix_io are distributed straight to $SNX stakers. No weird carveout where the protocol treasury council receives additional rewards No carveouts for anyone, just straight staker distribution. Defi baby.
Twitter avatar for @adamscochran
Adam Cochran (adamscochran.eth) @adamscochran
Perps V2 barely rolled out, V3 not yet launched, and yet Synthetix is the protocol that puts the largest daily fees to holders in all of DeFi https://t.co/kfav1M5Lid
9:56 PM βˆ™ Jan 16, 2023
24Likes5Retweets

Should you speculate on the $SNX token? We don’t offer financial advice and we’re not active traders, so use your own judgements.

But, perhaps it’s the last to move on exposure to flywheel assets? Over the past few weeks, we’ve seen a number of distressed DeFi assets pumping hard relative to $ETH, including big moves by $FXS, $CVX, $CRV, $CLEV, $CTR.

The latter for instance, jumped hard:

Given the surge in flywheel assets, we’re a bit surprised the move by $SNX has been relatively tepid by comparison.

Is $SNX due for a pump as well? We couldn’t possibly say. Perhaps people aren’t aware of Synthetix’s role in the Curve ecosystem? Or maybe something different is behind all this? Not sure!

Some more background, our June article on Synthetix:

crv.mktcap.eth
June 20, 2022: If You Wanna Synthesize, I Empathize πŸŽΉπŸŽ›οΈ
Read more
a year ago Β· 3 likes Β· crv.mktcap.eth

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