SNX is now supported by the Base Bridge, allowing SNX tokens to be bridged from Ethereum to Base. This will help to support the upcoming Andromeda Release and its Buyback and burn mechanism.
Bridging SNX to Base
The SNX Base Bridge facilitates the transfer of SNX tokens to Base. Users interested in providing liquidity for the SNX/USDC pair on Base will contribute to the buyback and burn mechanism.
However, it's important to note that SNX staking will not be available on Base, so users looking to stake their SNX tokens should not use this bridge for that purpose.
To bridge your SNX tokens, visit the Official Base Bridge or Bungee, a bridge aggregator with SNX tokens on Ethereum. If you're an SNX staker, please ensure your SNX is transferrable by visiting the staking dapp before attempting to bridge.
Buyback and Burn Mechanism
The buyback and burn mechanism is a crucial element of the Andromeda Release. Approved via SIP-345, 40% of the fees generated from Perps V3 on Base are designated for the buyback and subsequent burning of SNX tokens. This process, which aims to reduce the SNX token supply, is detailed in the Andromeda buyback and burn blog post.
Liquidity on Base
Aerodrome, a fork of the Velodrome DEX on Optimism, will play a crucial role in enhancing SNX liquidity on Base. This liquidity effort will support both the buyback and burn process and those interested in acquiring and holding SNX tokens.
The Synthetix Treasury Council is utilizing its veAERO holdings to direct emissions toward the Aerodrome SNX/USDC pool. Refer to the Treasury Council channel on the SNX Discord for up-to-date efforts as to Synthetix liquidity on Base.
Staking on Base with USDC
The Synthetix protocol is introducing a new collateral option on Base, utilizing USDC as the collateral type for staking and perps margin. This experimental approach, approved by SIP-348, is designed to test the impact of a new collateral type and perp margin on this new chain. Note that SNX remains the staking token on Optimism and Ethereum.
It's important to remember not to bridge SNX to Base with the expectation of staking on Base, as this has not yet been approved.
If you've got any comments or questions, join the conversation on Discord.