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APY

APR vs. APY | Explained. Simply.In the realm of decentralized finance (DeFi) and crypto investments, two terms frequently encountered are APY (Annual Percentage Yield) and APR (Annual Percentage Rate). While they sound similar, their distinctions are vital, often determining the returns on your digital assets. APR vs. APY: Unraveling the Complexity Annual Percentage Rate (APR) represents the straightforward interest rate that a lender earns or a borrower pays over one year. For instance, if you invest $10,000 with a 20% APR, your total after a year becomes $12,000. This simplistic calculation doesn’t consider compounding. In contrast, Annual Percentage Yield (APY) involves the magic of compound interest. Compound interest means earning interest on the interest accrued. If the interest compounds monthly on your $10,000 investment at a 20% APR, after a year, you’d have approximately $12,194 . Daily compounding would yield even more at $12,213. Compounding frequency significantly impacts your earnings, with daily compounding being the most lucrative. Crucial Comparisons and Calculations When comparing financial products, whether in traditional finance or DeFi, understanding compounding frequency is paramount. Converting APR to APY is the key. A 20% APR with monthly compounding equals 21.94% in APY. Daily compounding raises it to 22.13% APY. APY factors in the compound interest, offering a more accurate depiction of your annualized returns. However, in the crypto space, things get even more intricate. APY might reflect rewards in cryptocurrency, not actual or predicted fiat returns. This distinction is vital due to crypto's volatility. Even if you earn APY in crypto assets, your investment’s fiat value might fluctuate, emphasizing the necessity of understanding the risks involved fully. Closing Thoughts: Navigating the Crypto Investment Landscape APR and APY serve as vital tools in understanding the potential returns on your investments. Remember, APY, incorporating compound interest, is the metric that truly reflects your earnings, especially in the dynamic world of cryptocurrencies. When comparing crypto products, ensure you're evaluating them on the same compounding basis and always consider the implications of crypto market volatility on your investments. Knowledge empowers wise decisions. By grasping the nuances of APY and APR, you're better equipped to navigate the crypto investment landscape, making informed choices that align with your financial goals.
Education
by Vestinda
Simple Investing Strategy, Affordable for all!Hey! Everybody wants to get rich. But not many from us know what it takes. In this article let's discuss Investing income from annual percentage yield (APY) . Key point is the percentage of income can be different from your location, but lets make our calculations from 8.0% APY. Why this strategy is Affordable for ALL? Well, for calculation I've used only $161 of monthly investing. I understand for some person this is nothing, and for another it is a lot. But you can calculate your own affordable investing amount per month and use it. Consistency is the key! Another point why its affordable, its because you don't need to have a lot of money at the beginning. You can start from minimal deposit allowed by service/fund/bank (APY provider) where you allocating your funds. Please, note, this is simple and affordable investing strategy. But still THIS IS NOT 100% SAFE STRATEGY... There are several risks of losing your money after all. Mostly this risks depends on APY provider, so I recommend to change your APY provider over a time, and to secure your funds use multiple providers. Let's see how we get this numbers and first of all it is important to keep consistency during all your investment journey. Remember, this way can make you millionaire and can create a fortune for your kids. To understand how this works, let's see what is Compound Interest: Compound interest is the concept of adding accumulated interest back to the principal sum, so that interest is earned on top of interest from that moment on. The act of declaring interest to be principal is called compounding. Financials institutions vary in terms of their compounding rate frequency - daily, monthly, yearly, etc. Your savings account may vary on this, so you may wish to check with your bank or financial institution to find out which frequency they compound your interest at. I used monthly compounding to calculate final value. With savings accounts, interest can be compounded at either the start or the end of the compounding period (month or year). Compound interest formula Compound interest, or 'interest on interest', is calculated with the compound interest formula. Multiply the principal amount by one plus the annual interest rate to the power of the number of compound periods to get a combined figure for principal and compound interest. This formula is base of all interest calculations. To get easier process of calculation, I have used online Compound Interest Calculator. Best numbers we can get if we start investing early, but it happens we see right information too late, and we ask ourselves "Is it good time to start?" — I can say for sure, YES! Always good idea to start investing in your savings account. Trading is trading, but investing is a little different. You can invest in markets, or in savings accounts. Now let's see "worst case" — you starting your investing journey at 40 years old. How much you can earn on savings account until 60? I have calculated it with calculator, and used only $161 investments/savings per month with APY of 8%. You can see after 20 years of savings this amount of money (pretty much affordable for many people out there) you will get about $95,464 Final Value. Very impressive. Imagine if you can save more from your income each month... For example if you can save $1000 monthly, you will get $592,947 Final value after 20 years on your Savings Account. Middle scenario — investing for 30 years on your savings account. Until 60 you can earn solid $241,547 Final value, investing only $161 per month! Now if you can invest about $500 per month from your income you will get amazing $750,147 Final value. And of course best scenario — start investing on savings account early from 20y.o. This way you can get $565,799 Final value by 60 y.o. And if its possible to save more, let's say $250 monthly, you can get $878,570.30 Final value by 60 y.o. So in order to get rich, you don't need to invest a lot of money. Just make you investments consistent, and improve your financial education. Hope this article can inspire you to create your savings account and plan your future. Best regards, Artem Crypto
Editors' picks
BITFINEX:BTCUSDEducation
by ArShevelev
126
SNX update: Using Chaikin Money Flow and the Keltner ChannelsFull disclosure: I am long SNX with a current holding of 3,042 tokens held on the Celsius Network. I am currently grandfathered in and still earning 14.05% APY despite the recent SEC ruling inhibiting non-accredited US investors (like me) from earning interest. Libertarian here, so I hate big government. Anyway, recent SNX price action continues to plod in the direction we like. Looking at the CMF (Chaikin money flow- green line below), it appears we are seeing a renewed interest flowing into SNX. Always a good sign. And the Keltner Channels show a robust upward trend. Currently, SNX is staying safely within the upper band of the KC, not overextending above nor dipping below into the lower band. This is VERY bullish action. May it continue. If you like this idea, please feel free to comment or read my other ideas to stay abreast on SNX. -- Garry
BINANCE:SNXUSDLong
by tg-l
SNX Looking quite bullishFull disclosure: I am long SNX with a current holding of 3,035 tokens held on the Celsius Network. I am grandfathered in and still earning 14.05% APY despite the recent SEC ruling inhibiting non-accredited investors (like me) from earning interest. Always screwing the little gals & guys in the name of "protecting us." Thank you, big government bureaucracies... for nothing. Anyway, on to today's look at SNX using the Keltner Channels... SNX is mounting it's second day in the upper band of the KCs. This is a very good sign. If SNX can stay within this bullish channel and not overextend (outside of the Keltner Channels), we could ride this trend back toward its ATH (All Time Highs). Outlook: Even though there should be little correlation between BTC, ETH, Technology Stocks, and Alt-Coins (including our SNX project/platform), it does currently exist. Even though these things will eventually become disjointed/disconnected in price-action as they should be, until then, if BTC takes a severe tumble, we can expect SNX to do so to the extreme. Conversely, if BTC continues to plod upward, we can expect extremely bullish price-action in SNX. Fingers crossed for the extremely bullish action. ;) --Garry
BINANCE:SNXUSDLong
by tg-l
AVAX USD RALLY RETRACE PART 22 Bullish targets at resistant levels 100 and 120 possibly all time high 1.47 plus. Big retrace after ATH or resistance levels with further continuation of wave 2 to 1.618 Fibonacci Support. This is where investors will or should after the sell off get in for the Proof of Stake project to really build up the stock for APY HODLing. This will be a very long consilidation of support, there are only 270 mill in supply, aprox. double ETHs Ciculating Supply This project has potential but there will be big losses for the early buyers if they dont sell off, competition for these AVAX will be huge and low cost purchase is smart money.
COINBASE:AVAXUSD
by K11vin
2
SNX May be breaking to the bullish side of the Keltner ChannelFull disclosure: I am long SNX with a current holding of 3,035 tokens held on the Celsius Network. I am grandfathered in and still earning 14.05% APY despite the recent SEC ruling inhibiting non-accredited investors (like me) from earning interest. Always screwing the little gals & guys in the name of "protecting us." Thank you, big government bureaucracies... for nothing. Anyway... It looks like SNX is trying to break into the "bullish" side of the Keltner Channel (See yellow circle). If SNX can maintain in the upper band, this will be a very strong signal of future bullish price-action. --Garry
BINANCE:SNXUSDLong
by tg-l
3
SNX Still Strong But Outside Upper Keltner Utilizing the Keltner Channels, we can see SNX got a little too far out over its skis. I put an orange circle around where the SNX price action stepped outside of the upper Keltner Channel. I knew it couldn't last forever, but I was hoping for a little softer re-entry. Meanwhile, all is still well. The median-line projected shows that SNX will still be in the upper strong side of the channel so long as it bounces before we get to that $6.36 mark. If we slide to the lower side of the channel, that could be a negative trend. We (long-term holders of SNX) don't want that. Bottom line: I am looking for SNX to bounce before we hit the median line. I expect continued positive price action going forward. If you like this idea, please read my other ideas or comment below. Thanks! -Garry
COINBASE:SNXUSDLong
by tg-l
SNX: Breakout above $7.50 could see doubling to next resistanceDisclosure: I am a long-view SNX HODLer. This is not financial advice. This is simply my opinion and how I apply it to my own assets. 1 April 2022- My views on the current bullish SNX action: As SNX has blasted more than 100% up from its recent lows, it has now established $7 as its potential support level and it is nearing the next SUPER IMPORTANT resistance level at $7.50. Volume has been good, ever increasing. The project and platform finally has firm footing, momentum and is firing on all cylinders. And if SNX rises above this $7.50 level, I see the next major resistance as double from here! DOUBLE! 100% from here! Take a look at the chart. If you like this idea, please check out my other ideas on SNX for more information on the token, the project and how to earn high APY on SNX the easy way.
BINANCE:SNXUSDLong
by tg-l
SNX BREAKOUT; $6 surpassed! Will it act as support? I think so!Full disclosure: I am a HODLer of the Synthetix Network Token (SNX). I transferred over 2700 tokens to Celsius Network on 31 July 2021 where I was receiving 13.99% APY at the time. They have since increased the yield to 14.05% APY, paying out every Monday like clockwork. Trade View will not allow me to advertise my referral code for Celsius here, but I do have one if you message me. Now, for what has me so excited about today's chart. We just broke through $6. If SNX can hold above that level perhaps even retesting it as support, I think we may see SNX take off. I added the "auto pitchfork" visual to give you an idea of what I hope to see happen. This derivatives project is sound, the token is necassary to conduct business on its platform and the token has scarcity on its side that lends to an upside of somewhere in the $50 to $100 per token range... if the inflated dollar doesn't continue to crash from here. If the USD does continue to collapse, it will further enhance crypto price action in our favor as people seek other sectors (crypto) to store value. Sidenote: I now have over 3012 SNX tokens thanks to the power of compounding at Celsius Network. I don't have to hassle with swap defi platforms, high ETH gas-fees, or delegating, validating or staking in general. I just watch it grow every Monday. If you wish to do the same with your SNX (or 40-plus other cryptos), we can both earn $50 worth of BTC when you open an account using my referral code and move $400 worth of crytpo to Celsius and hold for 30 days. And you will have your own referral code you can share with your friends once you have an account.
BINANCE:SNXUSDLong
by tg-l
SNX Trade synthetic assets with 10x leverage- Perpetual FuturesToday, 21 March 2022 Synthetix Network emailed out the following notification to followers of the project: "Perpetual Futures Launch" "It's been almost two years in the making, but our synthetic perpetual futures have finally launched. Now anyone with access to the internet can trade synthetic assets with 10x leverage. Want to trade? Head over to Kwenta's dedicated trading UI to access the beta version." "Benefits of Perpetual Futures: - Leverage - Short Exposure - Hedging - No expiration (unlike traditional futures)" "Kwenta Perpetual Futures, powered by Synthetix, is the perfect trading protocol that offers low fees, deep liquidity, and complete decentralization (no sign-up required!)." "Synthetix's perpetual futures enable a much expanded and capital-efficient trading experience by allowing leveraged longs and shorts on a large selection of assets. SNX Stakers get an additional revenue stream in a market that is untapped – no one in the perpetual futures industry has ever shared this revenue with their community." If you are interested in the Synthetix project whether for trading in derivatives, futures, for staking or any other reason, you can gain a more detailed perspective by reading about these updates at blog dot synthetix dot io. Full disclosure: I am long SNX since purchasing at the end of July 2021. I hold my tokens on the Celsius Network and earn 14.05% APR without the hazards of staking or trading. I am a long-term HODLer. I see SNX eclipsing its ATH (all time high set in May 2021) by the end of 2022 or early 2023. If you like this idea, read my other ideas. If you have questions about earning from HODLing, I have a referral code that will earn us both fifty dollars' worth of BTC if your transfer at least $400 worth of assets to Celsius. Just ask me.--Garry
BINANCE:SNXUSDLong
by tg-l
SNX Liking the CMF chartQuick snapshot today. I am liking the Chaikin Money Flow (CMF, the green line below) on the Binance SNX chart. It isn't as strong on the Coinbase SNX chart but it is getting there. We haven't seen this kind of positive money flow since a few months back when SNX popped to $15 or so. Let's hope that a replay is in the cards, but we will have to see if this holds up. Time will tell. I continue to HODL knowing the project is sound. If you like this idea on SNX, be sure to read my other ideas.--Garry
BINANCE:SNXUSDLong
by tg-l
SNX update: Money flow, Solana now; MATIC, AVAX, AAVE, UNI soonDisclaimer: These are my observations and personal views on SNX. Full disclosure requires I tell you I am long SNX and see a high profit potential in this "derivatives" trading platform. Synthetix refers to these derivatives as "Synths." To actually trade, you need to go to Kwenta (kwenta dot io ). Now for the updates. As witnessed by the CMF (Chaikin Money Flow / green line below), the flow did not dip as far this last volatility cycle as the preceding dip. To me, this indicates a likely fast rebound once the markets calm. In other news, on 15 February 2022, Synthetix explained "Dynamic Exchange Fees" in their blog (blog dot synthetix dot io) and how it eliminates "frontrunning" during volatility and will keep overall fees low when trading on Kwenta. Additionally, on 15 February 2022, Synthetix released two updates. Well, one is actually an OCR protocol upgrade (SCCP-163) via Chainlink. The other is SIP-199 (they say 199 at the beginning of that blog article and 209 further in the reading) and is more exciting in my mind. SIP-199 added Solana (SOL) synth on Optimism with shorting functionality. And if that isn't exciting enough, Synthetix (dot io) retweeted the following: "New #Synthetix intelligence from lead developer of @synthetix_io, @MattLosquadro: 5 new synths coming to @kwenta_io: #MATIC, #AVAX, #AAVE, #UNI and #EUR So cool! The progress continues even as volatility makes for great SNX price entry... and I continue to earn my SNX tokens at 14 percent APY every Monday on Celsius Network. --Garry For more info or ideas comment or read my other ideas.
COINBASE:SNXUSDLong
by tg-l
SNX volatility optimism updates Chaikin Money Flow and high APYYes, I wish I had bought more on the recent sub-$4 dip. I am still holding long term but volatility is still the price we pay for being early in an enormous opportunity. I remain optimistic. Why? 1. I still see the desire to put money into Synthetix every time the market calms down as witnessed by the recent uptrend in the CMF (Chaikin Money Flow) green line. That will return when volatility subsides. 2. SNX is still smoking through the upgrades. This month isn’t even to the half-way mark and the Synthetix Blog (blog dot synthetix dot io) indicates SNX is on its fourth update for the month of February. Here are the latest take-aways. 8 February 2022, “Synthetix has partnered with dHEDGE to deploy a one-click debt mirror index for SNX stakers on mainnet Ethereum. With this tool, each staker can hedge their exposure to the debt pool…While this solution has been initially launched to layer one, we're working hard alongside the dHEDGE team and protocols on OE to make this a reality for OE stakers as well.” (OE = Optimistic Ethereum) 9 February 2022, “SIP 185…The Alphard release…This change enables many highly anticipated features, such as debt pool synthesis, putting an end to snapshotting staking rewards, and overall simplification of the debt tracking system.” So, as we get closer to mainnet launch, I continue to earn almost 7.5 tokens every Monday without the risk or worry of staking at 14.05% on the Celsius Network (regulated and licensed by SEC & US Treasury). I have a Celsius referral code that will earn you and I both $50 in BTC if you want it (just ask me).
BINANCE:SNXUSDLong
by tg-l
SNX update: Alsephina Release, $6 resistance & 14% interestDespite the Chaikin Money Flow (CMF green line below) demonstrating the monetary volume has been weak, SNX has been attempting to break-out upward through the $6 level. Meanwhile, I continue to earn almost 7.5 tokens every week without the risk or worry of staking at 14.05% on the Celsius Network. I have a Celsius referral code that will earn you and I both $50 in BTC if you want it (just ask me). Now, back to the latest Synthetix Network update. The following is taken from the Synthetix blog (blog dot synthetix dot io) and is only a portion of what was written: “2 February 2022- Alsephina Release…what’s included in this release: SIP-184: Dynamic Exchange Fees: Add a dynamic fee in addition to base exchange fees that responds to and neutralizes oracle ‘frontrunning’ opportunities. With such a mechanism in place, base exchange fees can be safely lowered significantly and the overall cost of trade execution on Synthetix can be drastically reduced. SIP-193: Refactor SystemSettings into Library to reduce contract size: Refactor and deploy a new library for SystemSettings to reduce contract size. SIP-196: Remove Centralized Oracle: Removes all centralized oracle code from Synthetix contracts and testing. SIP-196 removes all centralized oracle code from Synthetix contracts, which no longer rely on centralized oracles and instead utilize fully decentralized and trustless feeds from Chainlink.” So, from what I can understand, it is now safer, cheaper to trade and more reliable (decentralized/trustless) via Chainlink. There was no downtime on L1 or L2 during implementation. As for me, I continue to HODL and amass at 14.05% APY. Monday will be another interest payment for me just as every Monday has been since my first reward on 6 August 2021. Celsius is regulated and licensed by SEC & the US Treasury.--Garry
BINANCE:SNXUSDLong
by tg-l
SNX update: Adding partners and featuresEven as the Synthetix token (SNX) attempts to break above its 20-day MA stacking what could be a fifth green-candle day in a row, the project has been busy this year already. Here are the highlights from this month's Synthetix Blog and the announcement dates: 12 January 2022- (after partnering with the Graph to make major subgraph improvements) Synthetix partners with Gauntlet team "to provide automated financial risk management simulations for the Synthetix protocol. The unique mechanics of the Synthetix protocol require deep analysis to optimize, and Gauntlet has the resources, systems, and experience to ensure that Synthetix has both proper risk management and optimized capital efficiency." 19 January 2022- SIP 200 The Peacock release fixed a "FeePool Rewards Distribution" glitch. 22 January 2022- "Integrated the Synthetix loans feature directly into the Staking dapp on Layer Two (Optimistic Ethereum). Loans have been live on mainnet for almost a year now, and we’re excited to allow more of our users access to sUSD loans." 24 January 2022- "Announced a new round of incentives for WETH/SNX on Optimistic Ethereum. Synthetix will partner with Gelato to leverage G-UNI pools that enable rewards for liquidity providers." Note that the blog announcements included "How-to's" as appropriate... like for loans or staking. These were only excerpts to help keep you abreast of the project's rapid advancement. For a deeper understanding, I suggest you read directly from the project's blog. This is still a long position for me as I continue to hodl hassle-free on the Celsius Network earning 14.05% APY or almost 7.5 tokens every Monday. Yes, I realize higher rates can be achieved for those who wish to do their own staking, but I'm lazy and 14.05% is huge for living in Texas and my not having to stake, delegate, or validate ever! If you want to know exactly how I am doing it and earn $50 in BTC using a referral code, message me. TradingView does not want me advertising that information here.
COINBASE:SNXUSDLong
by tg-l
SNX bottom: Are we there yet?With SNX mainnet still likely a month or so out, have we finally found the bottom in price action? I don't honestly know the answer and charts can only provide clues. Anyone who says they can predict with certainty is a liar. Again, this is NOT financial advice. This is simply what I am doing. I bought approximately 2765 Synthetix Network Tokens (SNX) on Coinbase in late July & early August (@$9.88 per SNX) of this year with the intention of earning no-hassle interest on Celsius Network at a yearly 13.99% APY. They pay me a portion (1/52nd of the yearly interest) in SNX tokens every Monday. The reasons I chose Celsius to HODL my tokens were many but knowing compounding interest at 13.99% will double my token count every 5 years was a big one. I understand there are ways to earn even more on Layer2 or on defi swap exchanges, but just as I am opposed to paying Coinbase their somewhat high fees for every transaction (buying, selling, swapping or transferring), I truly hate the volatile exorbitant gas fees of defi. I also hate all the steps necessary and the unpredictability of defi. Additionally, I have no desire to sit on my computer or stare at my cellphone all day making trades and computing transaction/gas fees or deciding where to delegate/stake my tokens. Is there a higher payoff with that higher risk? Sure. Don't care. That's just me. I wanted the "set it and forget it" high interest of Celsius that would cost me zero coins/tokens in fees once I migrated my SNX to their platform. I understood the potential of the Synthetix project (derivatives) well enough to be content sitting on a growing pile of tokens until their real value is discovered sometime early next year with the mainnet launch. So, how have I been doing so far? The price per token has taken a beating lately. But my view is truly longterm, especially by crypto-world standards. My token count now stands at 2914.828985. Celsius just added 7.35814 tokens to my personal account this morning. I don't take the risk of staking. I don't pay any gas fees. I don't pay any fees at all while I sit on my growing pile of SNX. Added bonus. Celsius just upped the interest rate to 14.05% APY on my SNX. They are adding a better on-ramp/off-ramp feature in the next few weeks, so that I won't have to pay fees to Coinbase (or other Cefi or Defi exchanges) ever again. No more having to buy elsewhere and pay fees. No more transferring and paying fees. I HATE fees! If you like what I am doing and want to use my referral code to earn $50 in BTC for setting up and transferring your coins or tokens to Celsius, just ask in the comments (Tradingview does not want me advertising my referral code). Celsius has over 40 coins/tokens that they service (the referral code applies to any of them). Most offer higher interest than you will find on other Cefi and they don't charge fees. Did I mention, I HATE fees?
BINANCE:SNXUSDLong
by tg-l
SNX Finding a floor; The sky is the limitAs always, this is not financial advice. This is simply what I am doing. It looks like the recent bear action has been especially unkind to Synthetix Network Tokens (SNX). But today is starting to look like it is establishing a floor last seen in June. I am still long on SNX as I believe in the team, the platform, the idea of free trading of derivatives across a spectrum of asset classes without a broker, and the scarcity of the token. Whether it feels like we are winning right now or not, it is a winning combination. On a separate note: How can I be so calm when I entered my SNX position at $9.88? We are sitting below $6. My SNX token count has climbed to over 2,892 SNX. I have added almost 127 SNX tokens since 31 July 2021 when I moved my tokens to the Celsius Network. Every Monday, I receive an ever-increasing reward of SNX tokens in my account when they pay me a portion of the 13.99% APY interest. Yesterday, it was 7.275 SNX added. Next week, those tokens will be included when they count my interest up...and it will be just a little more than that 7.275. At this rate, my total token count doubles every 5 years. That is the power of compounding, baby! So, if you bought in higher, let your token chill at Celsius Network and start earning you some serious interest. The price will rebound and more. Because of the updates and launch to Synthetix mainnet, I expect January thru February to be an absolute parabolic run for SNX! If you don't own it yet, BUY some now!!! After all, it is a quality item at a severe discount. That is how you make real money! Sidenote: If you want my reference code to earn us both $50 worth of BTC for opening an account at Celsius, just ask me. TradingView does not want me advertising my referral code. Good Luck! --Garry ;)
BINANCE:SNXUSDLong
by tg-l
5
Olympus DAO (OHM) Was $430 the Bottom?Clearly we've been in a bear market trend for Olympus DAO and many other DAO's. A big 70% retrace from it's swing high of $1360 Olympus DAO has been in a downtrend for the past 2 months and we're still trying to find a bottom. I personally believe we're coming close to finding a bottom for Olympus DAO and $430 may be it. However we're still on a continuation of this downtrend so waiting for clear signs of reversals and change of trends is important. But on our RSI readings we've formed some deep troughs and we may be nearing a bottom soon. Much peace, love, health, and wealth!
OLong
by peacefuljustin
Olympus DAO (OHM) Critical Support Area Must Be HeldOlympus DAO (OHM) has been in a downtrend since October 15th and now we're facing a major area of support at around $670 that needs to be held at the 0.382 Fibonacci level of $668. If we cannot hold this level then we will probably head back down to the 0.236 Fibonacci level of $475 which is not too pretty. As of right now we're trying to see where Olympus DAO finds its new swing low before another change of trend. Once we break this downtrend I do believe we will run back up to around $900 given that is where most of the price recognition and action has occurred at. Much peace, love, health, and wealth!
OLong
by peacefuljustin
2
Synthetix (SNX): A Safer 4X in Next Couple of Months!---Kwenta Testnet Takeaways, Next-Price Orders, SIP 80 and 184, and Synthetix Bottom Line--- The following is taken directly from the Synthetix io Blog update, dated 1 December 2021 and titled, "Futures Update." These are only excerpts and you would be well served to read the entire blog update. Kwenta Testnet Takeaways: "Much progress has been made and numerous lessons learned, culminating in a Kwenta testnet competition held in October. Overall, the testnet competition was a great success. The futures market functioned as intended, and also highlighted some opportunities to enhance the usability and efficiency of the platform without adding too much additional scope. One of the takeaways was that frontrunning still poses a legitimate risk on L2 if Synthetix is going to offer low fees for perpetual futures. This prompted the introduction of SIP-184, which dynamically adjusts exchange fees in response to price instability. With SIP-184 as a backstop against volatility, base exchange fees can be safely lowered. Research done as part of SIP-184 suggests that ~20bp exchange fees could be feasible, with the dynamic fee only kicking in ~1% of the time. Note that this is just an initial target, and further improvements are likely to support even lower exchange fees." Next-Price Orders: "First and foremost, the transition to L2 has greatly improved the frontrunning situation for Synthetix. The scalability offered by Optimistic Ethereum enables Chainlink oracles to push updates much more frequently in a cost-effective way, thus allowing for spot synth exchanges with no fee reclamation and negligible frontrunning risk (with 40bp fees). The other main differentiator of Synthetix perpetual futures compared to other platforms is the role of funding payments. Traditionally, funding payments are used to align the futures market price with the spot price. Because trades on Synthetix are executed at the current oracle price, there is no need for such a mechanism. Instead, the funding rate is used to encourage balanced open interest and minimize directional risk incurred by SNX stakers. This brings us to next-price orders which, as the name suggests, are trades that execute at whatever price is reported in the next oracle update after a trade is placed. Because orders fulfilled at the next price update are inherently difficult or impossible to frontrun, they can be filled with an extremely low exchange fee and minimal or no risk of frontrunning. Note that next-price orders will exist in parallel with traditional atomic exchanges, and that atomic exchanges with a slightly higher fee will always be offered. The target user for next-price orders is predominantly arbitrage traders who will neutralize market skew to earn the funding rate (there will not be a UI for next-price orders initially). With lower exchange fees, these traders will be able to more efficiently neutralize even relatively small imbalances between long and short open interest. This will greatly reduce market risk passed onto stakers while also broadly lowering funding payments made by other traders on the platform. It is also expected that usage of next-price orders will decline over time as fees for atomic exchanges approach parity with next-price orders." SIPs: "These two additions (SIP-184 and next-price orders) are relatively minor compared to the rest of the futures scope (outlined in SIP-80), but offer extremely significant benefits to users. Thus, the tradeoff of incorporating them in exchange for a slightly later launch date is well worth the effort. Currently, SIP-80 and SIP-184 are both code complete and under audit. The additional logic for next-price orders is in progress and close to being finalized. The next steps from there are testing SIP-184 on testnet (this week) to push fees as low as possible, then getting ready for mainnet with a target launch date in mid-January. The mainnet launch will be rolled out in several stages, gradually expanding maximum open interest caps as the effectiveness of the underlying mechanisms are validated." BOTTOM LINE: "It’s been a long journey, but the light at the end of the tunnel is now clearly visible. In a little over a month, Synthetix will deliver a fully on-chain composable perpetual futures market on the highly performant Optimistic Ethereum layer 2, with top tier UX and unparalleled liquidity. While it would have been ideal to launch futures before the end of the year, more sUSD liquidity is still needed on Optimistic Ethereum and by the time mainnet launches there should be a significantly higher amount of SNX staked on L2 reducing the risk for everyone staking on L2. With the upcoming Debt Pool Synthesis, we will also have much more sUSD liquidity to leverage for futures traders." Hopefully, this isn't too much to take in. There was actually a little more in their update, but it is good that they are keeping us SNX hodlers informed. My (Garry, not Synthetix Blog) only additional thought is, at today's cheap pricing, SNX is one helluva deal for the project/platform. In my mind, I am positive we will see SNX shoot past its previous highs seen earlier this year based solely on a quality product/project. This isn't your nephew's favorite meme speculation waiting on a tweet to make you rich. When SNX retakes and surpasses its old highs, it will not fall near as easily as that next Dog coin. This a much safer 4x in my mind in the next couple of months!!! On a side note, I am increasing my SNX token count every Monday, earning additional tokens at 13.99% APY without the hassle of having to stake, validate or delegate my tokens. I just earned over 7 SNX yesterday, just like the week before and just like I will next Monday! If you want to do the same, I can give you my referral code to earn us both $50 worth of BTC if you do. TradingView does not want me advertising the exchange or my referral code here, but you can contact me if you want that info.
BINANCE:SNXUSDLong
by tg-l
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