Master It Monday: How to mint synths & earn weekly rewards using Synthetix Mintr
The ins and outs of Synthetix weekly reward farming initiative
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What’s up y’all? Monday morning fresh feelin’ alive lets get after it today.
What we have for you today is another way to earn some yield in DeFi thru Synthetix weekly rewards system!
Synthetix is a synthetic derivatives platform which you trade ‘synths’ AKA synthetic assets like sLTC, sXAU, sUSD and more.
Honestly, a revolutionary concept.
In today’s Master it Monday were showing y’all how to mint sUSD using SNX tokens, go long SNX (if you want) & keeping your c-ratio high to earn weekly rewards.
Lets earn some yield degens.
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How to mint synths & earn weekly rewards using Synthetix Mintr
The DeFi Summer was a yield farming craze, led by the bluechips as we know them to be used as LP tokens. This obviously led to an increased demand for tokens like SNX, ETH, LEND (now AAVE), COMP, YFI, and others…you needed them to farm the tokens.
Man I remember the first round of Sushi farming that was nuts. Looking at the interface trying to figure out how bad this was about to end.
“This has got to be a pure exit scam, what is going on here?”
Well, turns out it wasn’t, and since then the prospect of earning yield on your assets has been a necessity for DeFi power users….
One of the OG tokens & the ‘father of yield farming’ Synthetix Network Token (SNX), has a very simple yet wildly profitable farming mechanism.
Mintr is a really cool (yet, kinda complicated) dApp. Synthetix is a decentralized derivatives platform with its own stablecoin sUSD. Similar to Maker & DAI, you can use your SNX tokens to mint sUSD at an appropriate collateralization ratio & collect weekly rewards.
cyber_hokie @cyber_hokieI think MKR holders participating in governance would be strongly incentivized to remove any systemic risk to DAI from any stablecoin with a purported but unverifiable 1:1 backing with USD.
However, there is a caveat here:
If your collateralization ratio slips too low (basically meaning your collateral $SNX tokens lose $$$ value), then you can be punished by the weekly rewards or liquidation system.
So if there’s one thing to take away from this brief intro, its to keep your C-Ratio HIGH at all times. We tend to think maintaining 700%+ is safe.
You have 72h to add to your position or face getting liquidated.
Lets get started & earn some rewards!
Head over to Synthetix Mintr & connect MetaMask. Make sure you have the SNX token in your wallet, can be found on Uniswap & most exchanges. You’ll be walked through a small intro on Mintr and Synthetix, then you will see this page. Click ‘Mint’ and move to step 2.
Enter the amount of sUSD you want to mint. If you click ‘Max’ you will be automatically prompted to mint the equal amount of sUSD at 600% C-Ratio. Again, we recommend staying well above 600% at the 750%+ range. Go ahead and make the decision for yourself & mint your sUSD! Continue to step 3…
If you check your MetaMask wallet you will see you have sUSD in it, free to use to buy synths on Kwenta.io or transact on Uniswap. Also, you will see the Mintr dashboard has now updated with your C-Ratio, SNX locked, and debt updates. As you can see, we keep 750% as best as we can!
Depending on what you want to do, you can use the sUSD to go ‘long’ on $SNX by going to Uniswap and trading your sUSD for SNX. This then gives you more SNX tokens via the debt you minted, therefore a decentralized ‘long’ position.
“A long trade is initiated by purchasing with the expectation to sell at a higher price in the future and realize a profit.”
You can also deposit your sUSD into Curve pools and earn yield in $CRV tokens, or purchase any of the synths on Kwenta! As long as the value of $SNX remains stable or increasing, you can use the minted sUSD to earn more profits in the market.
As always, this is risky and not to be taken lightly.
Derivatives are a beast.
Many people have gotten rekt.
Go claim your rewards! At this point on the Mintr dashboard you can press the ‘Claim’ option and you’ll be brought to a screen like below.
The rewards are available weekly and is reset on Wednesdays. You have 6 days to collect the rewards each week. Paid out in sUSD and SNX tokens, you earn yield on your minted debt proportional to the amount of sUSD.
Estimated ROI Example:
Say you stake 500 SNX tokens (~$2500 currently), you can expect weekly rewards of about 2.5 SNX & 2 sUSD or approximately $15. This will obviously change with the price of SNX and the liquidity in the pools.
NOTE: You only get the rewards if your c-ratio is above 600%.
You will get paid out in mostly SNX tokens & some sUSD. This is your yield. Your profits. Its that simple. Keep your c-ratio high and mint sUSD.
There are many usecases for decentralized derivatives & stablecoins which Synthetix provides. The capabilities of a permissionless, global system are endless and while we did touch on what we believe to be the most important one, continue to dive deep into research on how you can earn more yield.
Minting debt in any system is a gamified ponzi as Stan put in that amazing article, and unfortunately this will be abused and again cause a massive rise in price due to the ability to mint and long. Rinse & repeat.
Keeping your c-ratio at a reasonable rate will be the key factor in managing your personal risk.
While we have no clue whats going to happen in the next few years, we are certainly bullish on synthetic assets & right now Synthetix is leading the charge with nearly $1B TVL on their platform.
Imagine the world of tokenizing assets on-chain, tokenizing stocks, metals, FX pairs and everything in between.
Welcome to the future of finance.
You know what they say…not your keys, not your coins ;)
⚠️ DISCLAIMER: Investing into cryptocurrency and DeFi platforms comes with inherent risk including technical risk, human error, platform failure and more. At certain points throughout this post, we might get commission for promoting certain projects, if this is the case we will always make sure it is clear. We are strictly an educational content platform, nothing we offer is financial advice. We are not professionals or licensed advisors.
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Cope_Infinitum @CryptoMessiahYou guys have no idea what's coming... In 2017, every "good" project under 10m valuation went to 200m+ market caps. Some hit a billion. Defi pump 2 will make pump 1 look like child's play.