Synthetix is an established set of platforms that allows people to trade synthetic versions of real-world assets on the blockchain. Tradecurve is an up-and-coming hybrid decentralized exchange allowing people to trade derivative assets on-chain. Let’s see how they measure up.
More about Synthetix
Synthetic Protocol allows users to trade synthetic assets mirroring real-world asset prices. It eliminates KYC restrictions and solves liquidity issues faced by decentralized exchanges. Users can stake SNX tokens as collateral, enabling the creation of synthetic assets, which can be traded on various platforms.
The protocol’s ability to grant global access to asset trading without regulatory barriers makes it appealing to traders worldwide.
Synthetic is a very complex platform for many reasons, not least because there are various protocols built on top of Synthetix, including Lyra for options and Thales for sports betting.
By staking SNX tokens, users become counterparties to the system’s (e.g., other traders’) debts. They earn rewards in the form of trading fees and SNX emissions. However, active management of rewards is necessary, with users required to claim them weekly. Rewards are distributed based on network, debt amount, and maintaining a certain collateralization ratio. (c-ratio).
Despite its promising growth, Synthetic Protocol carries certain risks. Users must navigate its complexity, actively managing rewards and maintaining an optimal c-ratio. Stakers must actively claim their rewards and adjust their debt levels accordingly.
Failure to do so can result in lower rewards. Secondly, there are risks associated with being part of the Synthetic Protocol ecosystem. Traders within the protocol can generate losses that decrease stakers’ debts but also generate profits that increase stakers’ debts.
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— Tradecurve (@Tradecurveapp) June 29, 2023
What about Tradecurve?
While Synthetix is an established protocol, Tradecurve is a new one, still in presale. Much of the basics are the same, as they also allow derivatives trading of all kinds of crypto and financial instruments. As a DEX, they can provide institutional-level liquidity.
And they also require the use of collateral to trade. Unlike Synthetix, their whitepaper says they will help protect capital by negative balance protection, though we don’t yet know the details.
Just like Synthetix, Tradecurve does not require KYC, which means anonymity and regulatory-free trading.
The main differences that I found between the two platforms are that while Synthetix plans to offer another layer called Kwenta, which will allow 10x leverage, Tradecurve plans to allow 500:1 leverage.
Also, it seems that Tradecurve will be easier to use as everything will be in one place, and they do not have this complicated minting and risk strategy for their token TCRV.
SNX is currently trading at $2.08, which is a 6000% gain from the first price listed on Coingecko in 2019, though the coin was launched for an even lower price before being listed there.
TCRV is on offer at $0.018 with a minimum launch price of $0.088, which is a 400% gain from here, and then experts forecast that it may go up by as much as 10000% from there, which, if so, would mean a token price of around $8-9 dollars.
So who wins? In terms of having a finished product that you can use today, it’s Synthetix. Regarding future potential price action, leverage amount, and ease of use, it’s Tradecurve.
