Have you had a chance to study the SNX model of staking. They're basically the OGs of modern day passive yield farming?
-In a non-dilutive way.
You are viewing a single comment's thread from:
Have you had a chance to study the SNX model of staking. They're basically the OGs of modern day passive yield farming?
-In a non-dilutive way.
No I have not looked at their system too closely. I liked that project from the early days.
Want to give the cliff note version?
Posted Using LeoFinance Beta
Synthetix in 2019 decided to revamp their tokenomics model in a big way. As you may know they are a synthetic asset exchange using on-chain collateral to mint any synthetic including their own stable sUSD.
In a nutshell what they did was start inflating the SNX token get investors to stake SNX while offsetting the new inflation with protocol fees generated by the exchange.
Synthetix created a sleek app called mintr to manage it all. SNX stakers can claim weekly rewards that go into escrow for year until they can be transfer out. SNX rewards that don't claim go back into the general weekly pool & get redistributed new SNX claims.
They created a good product but the tokenomics were just as important. SNX staked skyrocketed from around 20% staked to in the high 80's. Needless to say it was great for their token appreciation.