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Synthetix Model
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Last updated: 29 Jan 2022. DM me at Twitter @88crypt for feedback/suggestions.
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xInstructions
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This model can be used to measure the expected profit/loss of an SNX staker when the value of the Synths (other than sUSD) changes. It can also be used to illustrate the impact of how closely a staker mirrors the global portfolio of Synths: he suffers no losses/gains when the price of underlying Synths move, if he mirrors the global portfolio exactly. Otherwise, he may suffer substantial losses. This illustratates that a staker is effectively "short the global portfolio."
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Potential enhancements: impact of changes in SNX price on collateralization ratio. Collateralization ratio can change if the numerator changes (sUSD debt changes as the value of Synths changes), or if the denominator changes (value of SNX changes). The model could be used to calculate the amount of SNX a Staker would need to add to the reserve. When Synths increase in value, the Staker's outstanding debt rises, which hurts our collateralization ratio (even if the value of the sBTC counters the negative effect completely). The Staker has to liquidate the sBTC to pay off some sUSD to meet the 600% collateralization ratio gain.. The analysis would illustrate how actively one has to manage their Synthetix portfolio.
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xAssumptions
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Asset
External Price
Legend
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SNX$5.00
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BTC$35,000
chosen variable
Change these to see impact of certain actions/scenarios
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external input
for things like price of BTC
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Debt pool beginning positionin tokensin $%
link to another cell
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sUSD 100,000 $100,000 42%key result
Key metrics
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sBTC 4 $140,000 58%
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Staker's initial positionin tokensin $
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SNX staked 60,000 $300,000
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sUSD minted 50,000 $50,000
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Exchange for sBTC
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% of sUSD exchanged for sBTC
58%>> changing this to a any number other than pro-rata to the existing pool will result in profits/losses when the price of BTC changes, through no action on the part of the Staker. Changing it to 0% reflects a Staker that doesn’t exchange his sUSD for other Synths; he is by default short the global portfolio
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sBTC purchased 0.83 $29,167
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sUSD left 20,833 $20,833
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Collateralization ratio requirement for minting sUSD from SNX stake
600%
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Important: Before entering variables for any action, scenario, or state change, make sure to zero out all the other blue chosen variable cells! Otherwise it will be hard to compare the Beginning and Ending values.
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xComponents
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Collateral PoolDebt Pool
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NumberValue
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TokenSNXSynthsPrice
Beginning amount
Change
Ending amount
BeginningChangeEnding
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Number of tokenssUSD$1.00 100,000 0 100,000 $100,000$0$100,000
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Beginning amount 288,000 sBTC$35,000 4.00 0.00 4 $140,000$42,000$182,000
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Change 0
Debt pool value
$240,000$42,000$282,000
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Ending amount 288,000
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Collateral Pool Value$1,440,000
State change
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Exchange synths: burn sUSD, mint sBTC
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Burn sUSD 0
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State changesMint sBTC 0.00
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Deposit SNX and mint sUSD
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Deposit SNX 0
State change
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Number of sUSD minted 0
Exchange synths: burn sBTC, mint sUSD
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Burn sBTC 0.00
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Mint sUSD 0
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AMM DEX (external)
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Note: this section is irrelevant for the calcs here, so the rows are hidden
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xSNX Staker
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NumberValue
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Assets
External Price
Beginning amount
Change
Ending amount
BeginningChangeEnding
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SNX$5.00 60,000 0 60,000 $300,000 $0 $300,000
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sUSD$1.0000 20,833 0 20,833 $20,833 $0 $20,833
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sBTC$35,000 0.83 0.00 0.83 $29,167 $8,750 $37,917
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Staker assets
$350,000 $8,750 $358,750
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Liability
Net assets
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in sUSD
Debt ratio (1)
Value
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Beginning debt outstanding aka owned sUSD
 50,000 20.8%BeginningChangeEnding
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sUSD minted / (sUSD burned) 0
Net assets
$300,000 $0 $300,000
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Ch. in value of debt pool from change in value of Synths
 8,750
% change in net assets
0.0%
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Ending debt outstanding aka owned sUSD
 58,750 20.8%
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Debt increase/(decrease)17.5%Profits
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This section only applies where an additional investment was made e.g. stake more SNX.
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If an investment was NOT made, refer to the Net Assets section instead.
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Portfolio value
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(1) Debt ratio = debt o/s / debt pool. Represents the proportion of the debt pool that the stake is responsible for
Ending value
$300,000
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Less: Initial value
($300,000)
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Less: Additional investment
$0
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Action: stake more SNX and buy the global portoflio of synths
Net profit
$0
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#$
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Add more SNX to collateral pool
 0 $0
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New sUSD debt 0 $0
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Buy some sBTC (default: global debt pool proportion)
0.00$0
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Retained sUSD exposure0$0
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Scenario: BTC price changes
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BTC moves by x%30%
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Change in value of debt pool$42,000
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Debt ratio of Staker20.8%
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Value of debt owed by Staker$58,750