Synthetix Bellatrix Update Will Make “Shorting” Simple For Users

The new Synthetix Bellatrix update will make “shorting” easier for all DeFi users as we saw the launch of the provision yesterday that ended up increasing the price of the SNX token by 11% so let’s take a closer look at today’s altcoin news.

The decentralized finance app Synthetix saw the launch of the Bellatrix update a day ago according to the release and the update even opened up a new on-chain capability for users. Synthetix is one of the blue Defi chips on the market and allows users to create, manage and trade synthetic assets which imitate another investment like options or futures atop the ETH blockchain. The Synthetix Bellatrix update will now allow users to bet against or go short on crypto assets and profit from the downward movement. The following assets were offered which occurred as a part of the update.

SIP-101 is the introduction of new crypto Synths that involved the addition of several new crypto Synths and the corresponding Inverse Synths for the following assets like Yearn, Uniswap, Aave, Polkadot, Ren, and Compound. SIP-108 will be shorting the rewards which incentivize users with SNX rewards from the synthetixDAO to open shorts against sETH and sBTC. The SIP-109 will add suspension support to the exchange and will restrict a specific Synth exchange during the market closure without preventing them from getting transferred. Finally, the SIP-95 will start delisting Bitcoin Cash products from Synthetix which was decided by November 2020 ahead of the potentially continuous BCH fork. Community governance decided to delist and community governance decided to reconsider it.

1) Yesterday Synthetix launched a new shorting mechanism, which also includes an SNX incentive — earn SNX for taking (currently) zero-interest shorts against sBTC and sETH! https://t.co/JuK5FvJ0Pu

— Synthetix ⚔️ (@synthetix) February 5, 2021

What the launch will bring is that Synthetix DAO will pay over 800 SNX per week to sBTC shorts and 8000 SNX per week to sETH shorts so all tokens will be distributed on a pro-rata basis:

 “The motivation for this is that the debt pool is still heavily skewed toward sBTC and sETH, and in the context of a bull market this skew represents a significant risk to SNX stakers.”

As reported recently, Back on Friday, the platform rolled out a new solution for its proposal in collaboration with Optimistic Ethereum and now users are able to migrate SNX to Optimistic ETH which is a second-layer scaling solution that uses a technology named Rollups in order to increase transactions speeds and to reduce transaction costs.