sETH, sBNB, and Inverse Synths are now live!
We are excited to announce that we have deployed five additional Synths to our range of synthetic assets!
We are excited to announce that we have deployed five additional Synths to our range of synthetic assets! These include Synths that track the prices of regular cryptocurrencies—sETH and sBNB—and ‘Inverse Synths’ that allow you to essentially short the price of certain cryptocurrencies and profit inversely to any price depreciation—iBTC, iETH, and iBNB. This is a major new piece of functionality for our synthetic asset trading platform, Synthetix.Exchange.
How Inverse Synths work
We’ll use iBTC as an example. The value of iBTC will be inverse to the value of BTC with relation to the entry price of $5300. This means that if the value of BTC is $5100, the value of iBTC will be $5500.
At the time of writing, BTC was at ~$5600. This means that the value of iBTC is ~$5000, and will increase in value if BTC drops in value, and vice versa.
There is a cap to how much profit or loss you can make with an Inverse Synth. For iBTC, there is an upper limit when its value reaches $7950 (i.e. when BTC reaches $2650), and a lower limit when iBTC’s value reaches $2650 (i.e. when BTC reaches $7950). If either of these limits are reached, a liquidation occurs and the tokens’ exchange rates are frozen, and they can only be exchanged at Synthetix.Exchange at those fixed values.
The new Synths and Inverse Synths are now available to be traded on Synthetix.Exchange. Give it a go if you wish to gain exposure to ETH or BNB, or if you wish to short ETH, BNB, or BTC, and let the Synthetix team know in Discord about your experiences!