Synthetix is excited to launch three markets to join its growing list of supported assets available for leverage trading through Synthetix Perp Futures on Kwenta.
New Markets - BNB, DOGE, DEBT RATIO
BNB and DOGE Perpetual markets will join the growing list of supported cryptocurrencies available for leverage trading through Synthetix Perpetual Futures.
The DEBT-RATIO market is an entirely different market, one that tracks a simulated SNX stakers debt position, increasing and decreasing at the same rate a stakers debt would change relative to their initial debt. This is accomplished using the existing Chainlink oracle which tracks the SNX debt ratio, using this ratio as the sUSD value of a perps market asset.
The benefit of this asset being a futures market is that it is extremely capital efficient, stakers can access up to 10x leverage for this market and then would be able to deploy their debt elsewhere.
What is this market used for? - Debt Ratio
Although it is possible to trade this market like any other, the market is primarily a tool for SNX stakers to hedge their debt. As the debt pool fluctuates over time, stakers owe more or less depending on this movement. If you’re an SNX staker and want more information on the debt pool and hedging, please begin here or join the Synthetix discord for assistance.
Since this tool matches an SNX stakers debt position’s fluctuations, a staker opening an equal notional size $DEBT-RATIO position to their SNX debt position will incur no net profit or losses from delta. This ensures that stakers always have access to the necessary sUSD to manage, or close their debt position with Synthetix.
Want to learn more about the Debt Ratio market?
Kwenta has prepared a great guide on the Debt Ratio market, including use cases, risks, and other important information. We've used some of their material as a brief portion of this blog post, but please learn more on Kwenta's blog as they've drawn out a comprehensive review of the debt ratio market.
Are you interested in trading Synthetix Futures? Go to any Synthetix-powered trading frontend such as Kwenta.