Synthetix Joins Two Other DeFi Platform To Develop Pool Of Bitcoin-Backed Tokens

Jyoti  |  Jun 26, 2020

World’s third-largest decentralized finance (DeFi) application, Synthetix, has joined Ren Project and  BitGo, on June 19, for developing a pool of tokens that are backed by Bitcoin that supports smooth liquidity between products of three companies.

In order to attract more participants in the pool, all three platforms have promised to provide reward tokens.

The pool of sBTC, renBTC and WBTC would be run on an automated market maker called Curve.

Synthetix Attracts Growing Horde Of Yield Farmers

It has been notified that all three versions of BTC pooled by DeFi platforms are totally different from each other. BitGo minted WBTC so that it serves as a centralized custodian, while the trustless smart contracts minted renBTC. On the other hand, sBTC has been supported by 800 percent collateralization of Synthetix Network Token (SNX).

The promotion of the pool started on June 19, but its hockey stick growth started a few days later .i.e., on June 22. This promotion would end on September 28.

It is being believed that Synthetix has attracted the nomadic and growing horde of yield farmers and they have been performing in the best way to beat the coming DeFi dust bowl.

Participants To Get Curve’s Governance Token

According to a notification, the platforms have announced different incentives for joining the pool on the Curve. The participants joining the pool would get a weekly reward of 10,000 SNX and 25,000 REN, which they would have to split. The two teams would also get BAL which they will generate from a liquidity pool of REN and SNX.

The companies have also guaranteed to distribute the soon to be launch governance token of Curve, CRV, among the participants.

With its new interest, Synthetix has started building up a strong position against Compound and MakerDAO. Earlier, the DeFi application has assets worth around $200 million, but currently, it has reached an all-time high of $263 million.

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