In a major positive development coming out of the world of decentralized finance (DeFi), up-and-coming on-chain liquidity, and derivatives trading protocol, Synthetix has announced that it has deployed version 3 (v3) on the Ethereum mainnet following a series of security audits.

For some context, Synthetix is a protocol that enables the issuance of synthetic assets on the Ethereum blockchain network and it is powered by its native token, SNX. This feature of issuing synthetic assets allows users to mint, hold and trade a wide range of derivatives, including commodities, fiat currencies, and even stocks on the platform.

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Synthetix TVL up 75% this year

According to data sourced from DefiLlama, the Synthetix platform holds a little over $430 million in total-value-locked in DeFi. This TVL in Synthetix is divided between the Ethereum and Optimism blockchains, with a distribution of about $302 million and $132 million. Synthetix had a little less than $3 billion of TVL in DeFi back in February 2021, which was its all-time high.

Developers working on the Synthetix project had previously stated that version 3 (V3) of this platform can be expected to have a far more efficient architecture to allow developers to create faster, and more efficient decentralized financial applications (dApps).

Synthetix V3 will also allow the creation of products that offer a liquid market for any financial derivative that developers want to build, from traditional financial markets to more exotic markets such as no-loss lotteries or even wholly separate protocols.

V3 will also offer simplified staking and differentiated debt pools, allowing stakers on the Synthetix network to supply collateral to and also receive fees in return from specific asset pools without having to be exposed to every Spartan Council-supported asset. Spartan Council is essentially the name given to the governance body of the Synethetix platform that votes on overall improvement proposals and parameter changes for the network.

Synthetix has seen positive price movements in its native crypto token, SNX. Take a look below.

SNX token has had a decently strong upward move since the beginning of 2023, especially in the first few weeks of the year. As of writing, the SNX token price is up nearly 90% since the beginning of the year and while it has seen some consolidation in the past couple of weeks, things look reasonably positive for the token. The SNX token has seen the formation of a golden crossover of the 50 and 200-day moving averages, which would act as very strong bullish support for the token.

If we see a recovery in the broader market scenario going forward, then SNX can be expected to be a good recovery candidate in the near future. Additionally, SNX can be used as a means of passive income as well. If you have a few SNX tokens lying around in your holdings, you can stake them to earn additional passive income. For example, the SNX-BNB liquidity pool provided by the Okto app provides approximately 38.83% of APY on the coins staked, as of writing this article.

Values as on 6 February 2023.

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