Thanks to this integration, users will be able to swap their tokens into Synthetix sUSD and then conveniently trade any Synth assets in 1inch’s user-friendly interface.
In this post, we’ll explain how to trade Synthetix’ Synths tokens on 1inch without having to go to Synthetix exchange.
We have recently implemented deep integration with Synthetix.Exchange. As a result, users have an easy way to exchange any tokens for sUSD and then trade a wide variety of Synths.
How it works
Synthetix Exchange is a decentralized exchange based on the Synthetix asset issuance protocol built on Ethereum. sUSD is Synthetix’ stablecoin pegged to the US dollar.
Users can provide liquidity in the Curve.fi sUSD pool and stake the pool token to collect an extra reward in Synthetix Network Tokens (SNX) given away by that pool. Each week, Synthetix distributes 64,000 SNX .
As much as $12M tokens have been already supplied to the Curve sUSD liquidity pool, which makes it the largest liquidity pool on the DEX market.
Now, let’s go to 1inch’s token swap page and swap, for instance, USDC tokens for sUSD. Both tokens are stablecoins pegged to the US dollar, and we’ll use the Curve pool for the swap.
Let’s take a trading example of shorting BTC, assuming there will be a BTC dump in the short time, so we’ll be able to cash in on this transaction. To do it, we’ll need to swap sUSD for iBTC.
Now, we have a short position for BTC.
One thing we need to draw your attention to is the protection mechanism in the Synthetix protocol, which blocks your token balance for 180 seconds. During that period, you won’t be able to see your balance, just a countdown to the moment when your balance is again available to you. We natively implemented this Synthetix protection feature on 1inch.
If BTC is not your cup of tea, you can swap sUSD for a variety of other Synth assets — Synths. All Synths are divided into several categories — crypto, forex, equities and commodities. Forex Synths include, among others, sJPY, a stablecoin pegged to the Japanese Yen, and sEUR, which is pegged to the Euro.
Due to Synthetix’ protection layer We won’t be able to execute swaps on our smart contract and reduce gas. However, we’re discussing with Synthetix team the possibility of executing swaps on the 1inch smart contract while still keeping Synthetix’ protection layer. Hopefully, a solution for this will be found over the next few weeks, and you’ll be able to execute Synth swaps on the 1inch smart contract.
For now, let’s execute a swap on the Synthetix smart contract. For instance, let’s try something different from stablecoins and go to the commodities section.
sXAG is a Synth token whose value is pegged to that of a silver ounce. Swapping your tokens for Synths, you’ll only have to pay a transaction fee of 0.3%, with no risk of slippage. We wish you successful trading with Synth assets!