Unlimited Liquidity on the Synthetix (SNX) Network

Staking SNX is done to offer collateral that traders on the Synthetix Exchange can employ. After every deal, transaction fees are gathered and added to the collateral pool. A user must know all the dangers involved before staking any SNX tokens.

By staking on the network, the SNX tokens are locked in a collateral pool. The pool, in turn, provides the liquidity needed for asset issuance and trading on the Synthetix Exchange.

SNX token staking can be done directly on the Synthetix platform. A user will need a Web 3.0 digital wallet, such as MetaMask, to connect with Synthetix.

How to Stake SNX

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#1 Open the SNX site

Go to the official Synthetix staking platform by visiting the Synthetix website, then select “Connect Wallet” in the upper right corner of the page.

#2 Connect Wallet

Connect your Web 3.0 digital wallet to the Synthetix platform by choosing it from the pop-up menu.

#3 Stake SNX and mint sUSD

Click “Staking” in the left tab when your wallet has been connected, then “Mint & Burn.” Depending on your SNX holdings, you may either opt to mint the maximum amount of sUSD or a bespoke quantity. Enter the desired stake in SNX in the following box, then click “Mint sUSD.”

#4 Finalize

The transaction must be approved in your Web 3.0 digital wallet. Your SNX tokens will have been staked, and sUSD tokens will have been created after the transaction is verified. Now, you’ll start to accumulate sUSD and SNX coins. These are accessible through the Synthetix platform.

#5 Claim Reward

Click the “Home” option on the Synthetix platform to get your rewards. Click the “Claim SNX” button on the homepage to claim SNX staking rewards.  You can view the next reward period’s end date and whether a claim is active or closed on the following page.  Your awards must be claimed within 7 days after release to avoid forfeiture and rolling back into the collateral pool.

How much can you earn by SNX staking?

Users that stake SNX earn benefits from two sources: weekly inflation and trading fees from the Synethetix Exchange. These techniques encourage the Synthetix network’s desirable behavior and compensate users for their staking.  The bulk of SNX is therefore being staked, with about 80% of the amount at any given moment.