HowToCrypto: Farming Synthetix(SNX) on Layer Two
Intended Audience: Anyone who has an existing Github account. You’ll need a Github account this time so that you can obtain Ether on the Kovan test network faucet in order to perform a transaction
Premise: I don’t understand how Blockchain and cryptocurrencies work and I’d like to find out more.
After a dinner conversation with Cedric, a university senior, I was pointed to a list of tasks which would help provide a better understanding of the Cryptocurrency Ecosystem as a whole. I figured that the community might want to do the same so I decided that I’d document each step in a series of How To Guides so that others can follow along. This is a third post in a series of posts which aims to guide you through performing some basic tasks in the crypto world.
Here’s the list of tasks:
- How to buy an ETH domain name
- How to do a transaction on Uniswap.
- How to get some Synthetix and farm them on layer two(This thread).
- How to do an ETH transaction on an optimistic rollup sidechain. I have no idea what an optimistic rollup sidechain is but we’ll figure that out.
- How to mint an NFT on OpenSea
Note that 5. links to an article on OpenSea. I was originally planning on writing an overview but I later realised that Open sea already has a comprehensive tutorial so I decided to just link to that.
Today we’ll be figuring out how to we will again be using Metamask
Layer 2 refers to a secondary framework or protocol that is built on top of an existing blockchain system
Synthetix is a way of minting virtual currencies. Here’s what I’ve done so far
Head over to the Kovan Testnet and grab some Ether. At present, it seems like you can only do a swap between Ether and SNX on the Kovan network.
Following which, let’s go to https://contracts.synthetix.io/kovan/Depot#writeContract and visit contracts. Hit Exchange testnet Ether for SNX. While doing so, make sure your Metamask wallet is set to the Kovan Test Network else you won’t be able to connect to Web3. For more information about Synthetix testnets you can visit: https://docs.synthetix.io/integrations/testnets/.
Now, let’s proceed to staking.synthetix.io Again, make sure that your wallet has appropriate settings and that you are actually on the Kovan network
Transfer the SNX to layer 2
Switch to Layer Two
Attempt to Mint SNX
Actually Mint SNX
Do note that step seven will fail. After making a post on the Synthetix discord it seems like you can’t mint sUSD on the test network at the moment.
We’re done! You are now one step closer to minting mainnet SNX on Layer Two.
Thanks for reading. See you next post :)