Synthetix (SNX), a decentralized liquidity protocol, is ushering in a new phase with the introduction of Andromeda. This upgrade introduces a deflationary feature to the Perps V3 engine.
As per the official update on its X account, Andromeda, released on Base Network, directs 40% of the Perps V3 Fees towards purchasing and burning SNX using contracts inspired by Yearn Finance.
Synthetix (SNX) Unveils Deflationary Upgrade with Andromeda Release
Synthetix, a decentralized liquidity protocol, has initiated a deflationary strategy with its recent Andromeda upgrade on Base Network. This move is fueled by the effective distribution of fees across its multi-chain deployments. The disclosed fee breakdown reveals that 40% will be dedicated to SNX buyback and burn, 20% to Perps Integrators, and the remaining 40% to USDC liquidity providers.
Synthetix's Andromeda Release: Embracing Buyback and Burn
With the Andromeda Release on @base, 40% of Perps V3 fees will be allocated to buying back and burning $SNX tokens using @yearnfi-inspired contracts.
This strategy is designed to effectively distribute fees in… pic.twitter.com/KAQCc4er60
— Synthetix ⚔️ (@synthetix_io) January 5, 2024
The Andromeda upgrade, encapsulated within SIP-345, signifies more than just a deflationary shift for Synthetix. The protocol has expanded its collateral base by incorporating USDC on Base. Beyond reducing the SNX supply and fostering deflation, these developments enhance the overall appeal of Synthetix, attracting developers, traders, and liquidity providers to engage with the platform.
Synthetix (SNX) Gears Up for Long-Term Gains with Deflationary Overhaul
Synthetix, a prominent DeFi protocol, is positioned for substantial long-term benefits following its recent deflationary upgrade. Leveraging the fundamental principles of supply and demand, the anticipated decrease in Synthetix’s supply coupled with a potential upswing in SNX accumulation could propel the token to new heights.
As of the latest update, Synthetix is trading at $3.47, reflecting a notable 2.47% increase in the past 24 hours—an impressive feat amid the broader downtrend in many altcoins. This strategic upgrade aligns with Synthetix’s ongoing efforts to enhance its appeal in anticipation of the upcoming bull market cycle.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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