What Do You Do With sUSD After You MINT It? Synthetix Network Tutorial 2


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investing number to take the s USD outside of the synthetic system and buy
a real-world asset ie e Thor BTC as I said s USD is available outside of the
system you can send it to ku point or use it on a Kyber or you know swap
crypto slow with more crypto gains what’s going on guys
so the topic of tonight’s video this is part two in my synthetics network token
tutorial and that is I have some s USD after I’ve minted now what what are my
options well first and foremost you could just
buy s NX and sit on it and huddle for the speculation of the coin itself but
as we said the whole concept is is that you’re hedging you’re hedging your bet
on s NX and using it as collateral so let’s get right to it
first and foremost dollar twenty nine on s and X nice little bump we head over to
our mentor and what do we see we see a collaboration level that is not it’s
above target so what are we gonna do we’re gonna go ahead and mint that s USD
max forty five and I actually want to reject that okay I’m gonna MITM is USD I
want to go ahead and turn up so fast the fees are kind of low right now so I’ll
go to ten to I the only reason I’m doing that is just to get my transaction and
go through a little faster for the sake of the video so I’m gonna go ahead and
hit the mint and a boom and there we go transactions in progress so let’s go
ahead and wait for that to finish and we will continue all right that was fast so
a theorem does work quickly with high gas when gas is cheap when gas is cheap
you know I really don’t mind bumping it up a little bit so basically I’ve mint
to $45 so let’s let’s learn a thing or two while we’re doing this
first and foremost understanding collateralization level so people are
like how do you come up with the seven hundred fifty percent well seven hundred
fifty percent actually translates into thirteen point three three percent of
your balance but we’ll go with the seven fifty so what you do is you get your
calculator you look at your USD value and you divide it by your debt value
that’s it that’s all that’s how it comes up with your seven hundred percent or
eight hundred percent or whatever it is so if I take fifty one forty eight 0.94
and divide it by my total debt 680 653 I get seven point four nine times a
hundred to convert it to a percentage I get seven hundred fifty percent so to
figure out your collateral level just take your total market value of SN X
divided by your debt that’s it pretty simple okay so now you’re like okay
what’s next well let’s do something with that s USD what are my options okay
option number one that is hyper compounding now I was in the discord and
they do not repeat do not recommend doing this because you can get caught
with your pants down so when I say that you’re gonna you’re gonna hyper compound
I’m gonna show you what that means but let’s take it back to step zero first
and foremost if you wanted to you could just sit on that s USD and know that you
can pay back your loan now keep in mind this def out you can change with the
market because it is a pool of debt but option zero is sit on your s USD and do
nothing okay fine but now you don’t have a hedge that can increase or decrease in
value so that is probably the safest thing to do is just to sit on your s USD
when your collateral level goes above 750 and you meant that is zero
the next option would be to hyper compound and people are like what does
that mean hyper compound well basically this su SD exists outside of this
platform and that’s what you have to understand is su SD is a coin so if we
go over to pit screener type in an s USD okay we can see it’s at ninety eight
cents and you can see that you can do stuff with it on cool coin so
theoretically if I wanted to I could send the the minted s USD that I bought
and send it outside of the system now why would you want to do that well the
only reason you would want to do that is to hedge a asset outside of the system
so basically op this option is hedging an asset outside of the system and that
asset could be eath it could be Bitcoin it could be tether it could be more s
and X and that’s what this option was of talking about hyper compounding so if I
went over to Yuna swap went this I have $45 right so I’m gonna type in s USD ok
since USD and I’m gonna say I want to buy some real eath with it
okay I got to connect my madam asked here in the corner not a problem so I
have $45 I could by 0.25 e so you’re like oh okay so this option is by a
real-world asset outside of the s NX synthetics exchange and if I wanted to rapped VTC so primarily eath I mean and
I’ve went down of the real-world assets or xilu manic maker there’s a little of
everything but eath would probably be you know what what you’d be getting but
keep in mind there is slippage when you do this so you’re paying a premium okay
you’re paying a premium so you can see I have $45 in su s of s USD it’s only
gonna get me thirty seven dollars of eath so what is that percentage loss so
45 minus what I say 37 yeah well we’ll call it 38 divided by 45 so that’s
that’s quite a bit of loss to flip to eath at this moment so I probably
wouldn’t do that now back to what we were talking about with us I don’t want
to I don’t want to lose your track here so we minted the s USD on the Minter
we’re taking Rs USD outside of the system remember how I said you could
hyper compound well hyper compounding would be me
buying more snx okay so basically the it went up in
market value I meant at the s USD and then I’m looping back through and buying
more snx so see that see that premium you’re paying dollar 33 so let’s check
the prices so you can see that that is most
definitely a premium on Yoona swap it’s a dollar twenty seven on ku coin okay so
I’d be better off ascending my s USD to ku coin if I want her to buy more s NX
I’m losing losing quite a bit of money so but anyways long story short let’s
just buy let’s buy – okay I’m just showing for demonstrative purposes –
okay swap it’s 40 cents super expensive so so anyways you see what I did I took my
ass USD outside of the system to you in a swap I bought more snx and then what
am i doing I’m going back to the Minter and then I’m gonna hit refresh right
because it’s added to my wallet and then my clatters a shin level should up
crease slightly and then I can mint more so you see what I did i looped back
around to work to snx okay there it is so I just got two more
snx so let’s refresh I’m gonna show you this is that hyper compounding concept
so it went up but my clattering level it wasn’t enough to move it but
theoretically let’s say I would have bought the $45 worth and then I could go
back and I could mint once again meant more sust it’d be small
but you get the picture basically I’m going in a complete loop so let’s cover
what we’ve covered already so number one zero option zero mint your s USD and do
nothing just keep your s USD option to take your
s USD outside of the system meaning you take it to ku coin you know swap or
whatever and you buy a real-world asset or you flip it for a real-world asset
and that real-world asset is your hedge against your debt that you could sell
and pay your debt off if you wanted to unlock your s and X now what’s the third
option the third option would it be and go and buy a synthetics asset on the
synthetics exchange okay so we’re gonna open the exchange up connect the wallet
okay pro mode I’m still trying to cost average my BTC position but in this case
I want some tron because I think it’s a good buy at this price so I’m gonna go
STR x5 dollars 81 cents 18 cents on the state average I’m going to go ahead and
hit trade max so what am i doing I’m buying
synthetic drawn okay and that is my hedge on my s USD okay so I hit confirm
trade okay boom okay so to recap let’s go over this I’m going to go ahead and
put something on the screen so this is easier to understand alright we’re at
the point in the video where I’m going to go ahead and recap your s USD options
after you stake your s NX and mint some s USD number one do nothing coddle
coddle your s USD that way you know you can pay back your loan or at least a
solid portion on your loan with your s USD number to take the s USD outside of
the synthetic system and buy a real-world asset ie
e Thor BTC as I said s USD is available outside of the system you can send it to
cool coin or use it on a Kyber or you know swap okay and then by buying
something real like ether BTC at least you know you could sell it back to s USD
or swap it you know in the future it’s a hedge you know it could go up and go
down etc option 3 take s USD outside of synthetics system and buy more s NX this
is the hyper compounding loop and this is risky and I was told it’s risky by
the people in the discord but do your own research and make your own decision
on that that is going to hyper compound your debt quickly but you’ll have
nothing to hedge against it to pay it back so number four buy a synth or
synthetic asset on a synthetic exchange long or short so that’s it that’s what
you do with s USD I hope you like tonight’s video like I said I’ll add
this the library on this play list and as always this is crypto slo
if you’re not talking gains then we’re not talking

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