Synthetix Network Token Tutorial | Video#4: The Most Effective Way to Fix Collateralization


and the question is how can I fix my
collateralization ratio well there’s two ways basically to fix your collateral
level but cryptocurrency news and investing CryptoSlo with more crypto gains
what’s going on guys welcome to another synthetic Network tutorial
tonight I’m gonna talk about managing your clatters a shin level by reduction
of debt and the question is how can I fix my collateralization ratio well
there’s two ways basically to fix your collateral a shin level but the second
way may not be as obvious and may not be used by a lot of people so looking at
this we can see I’m sitting at 761 percent and my target is 750 and you’re
asking let’s just pretend that it was at 740 and the weekly you know rewards were
available and I wanted to make sure that I was eligible for the rewards so that
is a first and foremost is in order to be eligible for the weekly stinking
rewards you have to be at 750 percent or 1 percent okay so we’ve covered that and
then you can claim your rewards and you have a two week window in order to get
to that 750 percent so the question is what is the most effective way to get
back to 750 percent well basically there’s two ways that you can do it you
can either a add more snx to your wallet one two you can reduce your debt okay so
two ways to get your clatters a shin level fixed and what is the most
effective way well I made a very simplistic chart to show you what I’m
talking about okay so there’s two scenarios buy more s and X or pay off
your debt well first and foremost one thing to realize is that if s and X has
a pullback in price my debt level will actually decrease so like I was at
a thousand fifty and now it’s at 986 so the most effective times to pay off your
debt number one are when s and X is in a pullback okay so that’s one thing to
keep in mind so let’s go back to our chart but here is what I’m talking about
so we I just have a hypothetical situation here the current snx price is
a dollar thirty seven I have a thousand dollars and market value of SN X and I
have two hundred dollars in debt so my current clatters Asian level is five
hundred percent so basically if I inject a little more a little new capital into
my wallet let’s see what happens okay so number one I add more s and X okay and
in this scenario I added fifty new dollars of s and X and you can see based
on the math my clutter ization level goes to five hundred twenty five percent
by buying $50 worth of s and X okay that’s scenario number one scenario
number two I pay off some of my debt so my debt goes from 200 to 150 boom
what happens my clatter ization level skyrockets to
six hundred sixty seven percent so what is the lesson here okay
buying more snx puts stuff in the numerator okay the divisor the
denominator is your debt okay by changing your debt level it has a more
direct impact on your clutter sation level than adding more s and X okay so
if your goal is how do I most effectively and cheaply fix my claw
ization level the answer to that pay off your debt especially if snx is
in a pullback you can see there’s a drastic almost a hundred fifty percent
differential in the top scenario I added fifty dollars worth of snx and in the
bottom I took my new capital got s USD okay on Eunice womp and paid off my debt
paid $50 worth of debt and you can see it’s a much much more effective way to
get my Clara’s Asian level in line by paying off the debt that’s it that’s all
there is to it but a lot of people when they get into this they don’t realize
that paying off the debt is the most effective efficient use of capital to
get your collateral level fixed so with that being said that’s tonight’s video I
hope you enjoyed it be sure to subscribe to crypto slow and turn on bail
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One thought on “Synthetix Network Token Tutorial | Video#4: The Most Effective Way to Fix Collateralization”

  1. Another great video of SNX. I've been playing around with this for a few days. Getting ready for the next price jump and minting.

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