Synthetix Network DeFi Unravels New Protocol Plans For 2020

The team that created Synthetix Network, has just unraveled the new protocol improvements for this year since the current infrastructure is ready for an upgrade and a range of new products are scheduled so let’s find out more in today’s cryptocurrency news.

The Synthetix Network is one of the very few discussed projects in the DeFi industry and it had already situated itself as a top-performing investment in 2019. With the rise of the platform, the crypto community is reassured that the authentic token utility is still viable despite the initial coin offering crash. As an emergent protocol, this platform is trying to create a new process through a smart contract upgrade since the last upgrade Procyon, made a few changes by re-enabling iXTZ which is the opposite of the Tezos synthetic asset. The upgrade also integrated Chainlink’s oracles for the forex part of the platform and for the commodity pairs.

His Achernar release which was scheduled for January 30, 2020, will bring three new upgrades to improve the economic incentives and users’ growth metrics. The Achernar release will introduce the ‘’skinny ETH Collateral’’ and this upgrade will happen in a three month trial period where the participants can use ETH as collateral on the Synthetix network. This upgrade is a very critical experiment that will show us how the SNX reacts to ETH being added to the platform. With the mining tool of the platform, the participants can take SNX and mint sUSD while with ETH users can only mint sETH. The trial version of this upgrade will include a 5 percent interest rate for the SNX minters and a 0.5 percent minting fee.

When the three trial months will end, the entire ETH market on Synthetix will be settled so the new version will be integrated into the protocol. The Achernar release focuses on improving the liquidity pools on SNX/ETH on Uniswap. The co-founder Kain Warwick commented:

 “This SIP (liquidations; SIP-15) evolved since before Haven (previous name for Synthetix) launched. The intent is for this to be a partial liquidation mechanism, unlike CDPs. That’s why the idea is to start liquidation at a higher rate and wait for a week or two (before it can be done). It becomes more expensive to game by crashing the price (of SNX) and liquidating users. You can only do it to bring a stake back to their c-ratio.’’