Synthetix staking is notably different from other DeFi protocols, as it enables users to earn rewards by underwriting Synthetic Assets within the Synthetix protocol. Staking provides numerous benefits for protocols built on Synthetix, such as deep liquidity, low slippage, and highly competitive trading fees.
Although it is known as one of the most complex staking systems in the DeFi space, there is no need to worry. By following this multi-part guide, you'll be well-prepared. Let's start by reviewing some of the essential tasks that staking accomplishes within the system.
Staked SNX performs several critical tasks:
Creates deep liquidity for Synthetic Assets: Spot Synths and Perps
Supports various protocols that rely on Synthetix liquidity
Entitles users to trading rewards generated by traders.
To learn more about staking, continue reading the multi-part staking guide.