xSNXa is an ERC20 wrapper for the SNX token and the Synthetix staking process. xSNXa holders express a long term bullish view on the value of SNX staking rewards and sUSD trading fees. xSNXa is a set-and-forget token, requiring no active participation from holders. xSNXa holders hedge their sUSD debt exposure 75% in the ETHRSI6040 TokenSet and 25% in ETH. Fees are 0.2% to mint with SNX or ETH, 0.2% to burn to ETH and 1% of sUSD fees claimed.
xSNXa is a risky and highly experimental product. xSNXa relies on integrations with several external protocols, exposing holders to multiple layers of smart contract and complexity risk. xSNXa applies a novel and largely untested approach to pooled staking and fund accounting. While xSNX does not maintain custody of your funds, investors rely on xToken to manage the staking process. In order to maximize returns, roughly 95% of the capital in xSNXa is locked at a given time. Holders may not have full direct exit liquidity available when desired and may have to resort to liquidity on an external protocol like Balancer. Lastly, the success of xSNXa is highly dependent on the success of the Synthetix protocol. Please do your own research on the risks of the xToken platform and Synthetix protocol.