Synthetix users will soon be able to trade proxies of the most popular US tech stocks.
Synthetix, the synthetic derivatives protocol, will launch its Alnilam update tomorrow which includes three Synthetix Improvement Proposals (SIPs) and adds support for eight new assets, including tokens tracking prices for FAANG stocks –– Facebook, Amazon, Apple, Netflix and Google
SIP-114 adds sFB, sAMZN, sAAPL, sNFLX, and sGOOG synthetic assets to Synthetix. The derivatives’ addition will give DeFi participants another avenue to gain exposure to big-name US equities regardless of where in the world they are based. Terra’s Mirror also issues crypto assets tied to traditional equities, and so does FTX, though on a centralized platform.
Synthetix will observe traditional finance market hours for their FAANG Synths, though secondary markets on AMMs for 24/7 trading may be created. The proposal notes that both stock splits and dividends present unsolved issues which need to be iterated on.
SIP-107 will add sCRV which will track the price of Curve Finance’s CRV ERC-20 token. The proposal cites Curve CEO Michael Egorov’s interest in deploying an CRV-sCRV pool on the protocol, allowing potentially more trades to happen in the Synthetix ecosystem.
Stakers of SNX, Synthetix’s native token, earn a pro rata portion of exchange fees when Synths, the protocol’s synthetic assets, trade.
SIP-126, authored by Synthetix founder Kain Warwick, adds both sRUNE and s1INCH synth options to the protocol. The founder says that many ERC-20 tokens will have low-liquidity on Optimistic Ethereum, the Layer 2 solution to which Synthetix is transitioning. Synths will help “bootstrap liquidity,” according to Warwick.