Synthetix

    Looks at synthetix useage on Optimism

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    Synthetix is one of the original blue chip DEFI applications built on Ethereum and was the first project to deploy on Optimism.

    Synthetix offers trading of synthetic stocks and cryptocurrencies with leverage. The platform has it’s own stablecoin SUSD, which you get by staking synthetics. The stablecoin is needed to trade on the synthetix trading platform. One of the biggest issues with synthetix on Ethereum is the huge gas fees in recent years, so deploying on optimism could help bring in significant new users.

    Since June 15, 64.7 million SNX has been staked on Optimism, with 27.2 million being burned, with a cumulative increase of 37.49 million SNX tokens staked.

    There were 8975 unique wallets that staked SNX.

    The biggest staker was wallet 0xa5f7a39e55d7878bc5bd754ee5d6bd7a7662355b with 21.7 million, accounting for one third of all tokens staked.

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    Synthetix Rewards

    Synthetix pays two weekly rewards to stakers. The SUSD rewards are generated from platform fees, over the 11 week period stakers have received 6.3 million SUSD of rewards.

    The second rewards are the SNX token which are an inflationary reward, these rewards are vested for 12 months. 7.92 million SNX tokens were given as rewards in the 11 week period.

    The overall fees generated by Synthetix is down but the percentage being generated on Optimism has increased a lot, with Optimism regularly doing 50% or more of weekly fees.

    There was a very big increase in SNX being bridged over to Optimism from mid June to Early August, I think due to their Atomic Swaps which got integrated into1inch exchange around this time which started generating a large amount of fees.

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    SUSD use

    What contracts does SUSD interact with the most? The main volume of SUSD appears to be swaps routed through the 1inch exchange with 79.9 million interacting with this contract, the Velodrome exchange contract is next with 61 million, in third it’s Aave lending platform with 54 million. The other interesting contract for me was the Lyra Options (0x5db73886c4730dbf3c562ebf8044e19e8c93843e) doing 45 million volume which requires all trades in SUSD and a hedging contract (

    0x60a5159bafb2198b967021ac77e26c1417081477) which hedges against the risk of staking SNX in it’s debt pool. SNX eth Futures

    0x22866c5c7f2b5475cff41465c53aa813b4c22b13 did 14.3 million volume

    SUSD

    40 Million SUSD has been minted from June 18 to August 24. That is a significant amount, it represents a 57% increase in SUSD marketcap on Optimism in just over 2 months.

    Synthetix has introduced lending on Optimism where you can lend SUSD against ETH at 0.5% interest rate.

    2.1 million in loans have been issued with 1.4 million repaid, meaning 675k minted SUSD is in circulation. The graph definitely appears to be trending upwards for Eth lending.

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    Conclusion

    There has been a significant move over from Ethereum Main Net to L2 Optimism for Synthetix. Fees generated has seen a massive shift where in June there were 5x more fees on L1 ( 2.3 million versus 271k) to August 8 where Optimism fees were 3x more the Eth L1.

    Since June 18, 39.8 million SUSD has been minted on Optimism, that is a massive amount when you consider L1 SUSD marketcap is currently 88 million.

    The Lyra Options partnership appears to be one of the biggest boosts to SUSD use, eth lending which is incredibly cheap at 0.5% hasn’t attracted a lot of interest.

    The biggest concern with Synthetix for many people is the inflationary emission rewards, with 7.9 million distributed on Optimism alone since June 13, this is currently being voted on the be removed.

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