Synthetix Founder Suggests To Simplify Staking SNX In New V3

Synthetix Founder Kain Warwick addressed concerns raised by the community regarding the intricacies of SNX staking. To address these concerns, Warwick proposed the integration of a new staking module specifically designed for SNX in Synthetix V3.

Synthetix Founder Suggests To Simplify Staking SNX In New V3

Kain Warwick, the founder of Synthetix, a protocol for synthetic asset issuance, has addressed concerns surrounding the complexity of SNX staking and proposed a solution to attract new users.

Warwick highlighted the safety improvements brought by the arrival of Perps and its skew balancing mechanism but acknowledged that the complexity of the process remains a significant barrier for newcomers.

To simplify the staking process and encourage wider participation, a new staking module will be implemented in Synthetix V3.

This module will allow users to easily deposit SNX without being exposed to market risks or requiring hedging. The aim is to provide a user-friendly staking experience and entice new users to join the Synthetix V3 ecosystem.

Initially, the Treasury Board will provide funding for this staking pool, but there are plans to allocate a portion of protocol fees to support it in the future. This new form of SNX staking will serve as the primary gateway to the Synthetix ecosystem.

In addition to the new staking module, Synthetix V3 introduces the SNX Liquidity Supply (SNXLP) system. Liquidity Providers (LPs) will contribute collateral to the marketplaces in Synthetix V3 and receive protocol fees generated, with deductions for integration offers and other initiatives.

The SNX LP system offers several advantages over the previous staking system, including the ability for LPs to choose specific markets for collateral and the introduction of new unlicensed markets.

It is anticipated that the V3 spot markets will have more neutral deltas, reducing costs for users and potentially leading to a shift towards LP participation over time.

To ensure a smooth transition to V3, the SNX staking pool will be launched initially as a test, aiming to iron out any potential issues before wider implementation.

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