What is SUSD? Instructions on how to mint sUSD on Synthetix

• What is sUSD?
• What is Synthetix?
• How does Synthetix work?
• Instructions on how to mint sUSD with SNX
• Instructions for receiving rewards from Synthetix
• Instructions for burning sUSD
• The safest sUSD exchange today
• summary

What is sUSD?

sUSD is the native stablecoin of the Synthetix platform whose value is pegged to the US dollar at a ratio of 1:1. To mint sUSD, users must collateralize SNX into the smart contract of the Synthetix platform. sUSD is the main currency of Synthetix, used on the platform to trade and exchange with other synthetic assets.

Synthetix establishes a stable sUSD with a value of 1 USD. Therefore, users can take advantage of this feature to earn income from arbitrage of sUSD. 

Example: If the market price of sUSD drops to $0.98, a user can buy 100 sUSD for $98 and exchange that amount of sUSD for a corresponding amount of sBTC worth $100 or any synthetic asset any other on Synthetix.

What is Synthetix?

Synthetix is ​​a decentralized derivatives platform built on Ethereum . Synthetix's synthetic asset (called Synth) is created by collateralizing SNX tokens. Users can trade Synths, including cryptocurrencies, indices, real-world assets like gold, etc. on Kwenta , Synthetix's decentralized exchange (DEX).

How does Synthetix work?

Synths use decentralized oracles, protocols that provide real-time price data based on smart contracts, to track the prices of the assets they represent. Synths are issued on Ethereum so you can use them on other DeFi platforms like Curve, Uniswap… to trade, provide liquidity and make profits. 

To ensure Synths have enough assets to absorb major price adjustments from the market, Synthetix encourages users to maintain their collateral ratio (C-Ratio) at an optimal level (currently at 750%). If the C-Ratio falls below 750%, the user will not be able to receive interest until it is restored to 750%. To adjust this ratio, the user can mint more Synth if the ratio is above 750% or burn Synth if the ratio is below 750%.

Users minting Synth will also receive a debt, which is the amount of Synth they need to burn to unlock their collateralized SNX. When users mint sUSD, they will also receive the same debt. The debt of sUSD will also be included in all debt on Synthetix for Synth miners. This total debt is expressed in sUSD and increases or decreases depending on the supply of Synths and their exchange rates. If the total debt on the system increases, your debt will also increase proportionally and vice versa.

Example: If you mint 1000 sUSD and the total sUSD value of all the Synths in circulation is currently US$1 million, your debt ratio is 0.1%. However, if the total sUSD value of all Synths suddenly doubles to US$2 million due to an increase in the price in Synths such as sBTC or sETH, you will need to return 2000 sUSD to unlock them all. My staked SNX. This amount that users minting sUSD must pay will be interest for users who own Synth when they withdraw from the system.

Instructions on how to mint sUSD with SNX

Investors must own SNX tokens to use features on Synthetix's platform. SNX can be purchased directly on many major crypto exchanges like Binance, HitBTC, OKX, Coinbase, Uniswap… Users will mint sUSD by staking their SNX.

Step 1 : You access and connect your wallet at https://staking.synthetix.io/ .

Synthetix supports many different wallets such as MetaMask, Ledger, Trezor, etc.

Step 2 : You access the "STAKING" section and select "MINT & BURN".

Step 3 : In the "MINT" section, enter the amount of sUSD you want to mint and press "MINT sUSD". Synthetix supports 2 main sUSD minting modes including:

• MINT MAX: Stake the entire amount of SNX to mint sUSD
• MINT CUSTOM: Mining the amount of sUSD at the discretion of the user

Step 4 : You confirm the transaction on the wallet to complete the sUSD minting process.

Instructions for receiving rewards from Synthetix

When staking SNX, users will receive weekly rewards if C-Ratio is greater than 600% including stake interest calculated in SNX and fees from all Synth transactions denominated in sUSD.

Step 1 : You access and connect your wallet at https://staking.synthetix.io/ .

Step 2 : You access the "STAKING" section and select "EARN".

Step 3 : You continue to select “Syntheix” and click “CLAIM REWARDS” to receive the reward.

Step 4 : You confirm the transaction on the wallet to complete the reward process.

Instructions for burning sUSD

To get back the staked SNX, the user will have to burn the minted sUSD plus a small amount of sUSD to pay the interest (debt). The unstake period will be 7 days.

Step 1 : You access and connect your wallet at https://staking.synthetix.io/ .

Step 2 : You access the "STAKING" section and select "MINT & BURN".

Step 3 : In the “BURN” section, enter the amount of sUSD you want to burn and press “MINT sUSD”. Synthetix supports 2 main sUSD minting modes including:

• BURN MAX: Burn all the sUSD in your wallet including the debt to unstake SNX
• BURN TO 400.00%: Burn as much sUSD as you want to achieve your ideal C-Ratio
• BURN CUSTOM: Burning user-entered sUSD
• CLEAR DEBT: Buy and burn sUSD needed to pay interest (debt) and unstake SNX

Step 4 : You confirm the transaction on the wallet to complete the sUSD minting process.

The safest sUSD exchange today

Currently, investors can trade sUSD on a number of exchanges such as Kwenta, Uniswap, Binance...

sUSD was created with the aim of being the currency for the DeFi ecosystem. Therefore, investors trade sUSD on Kwenta and Uniswap to optimize profits. 

summary

Above is the basic information about sUSD and Synthetix platform. Hopefully with these useful information and instructions for minting sUSD from SNX, you will have a new investment option with this stablecoin.

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