What is Synthetix?

Synthetix is a decentralized liquidity protocol that enables the creation and trading of synthetic assets (Synths) on Ethereum and Optimism. Launched in 2018, Synthetix allows users to gain exposure to real-world assets such as fiat currencies, commodities, and stocks without holding the underlying asset.

Synthetix's native token, SNX, is used for collateralization, governance, and staking rewards within the ecosystem.

How is Synthetix useful?

Synthetix provides decentralized access to traditional financial markets, allowing users to trade and hold synthetic versions of real-world assets on the blockchain. This enables permissionless exposure to global markets, reducing reliance on intermediaries.

Synthetix also supplies deep liquidity for DeFi platforms, benefiting traders, market makers, and derivative protocols. The SNX token is staked as collateral to mint Synths, securing the network and enabling users to earn fees from trading activity.

How does Synthetix work?

Synthetix operates using a collateralized debt model, where SNX holders stake their tokens to mint Synths, which track real-world asset prices via oracles. These Synths can be traded on decentralized exchanges (DEXs) like Kwenta and 1inch, providing seamless exposure to traditional markets.

Synthetix uses a pooled debt system, ensuring liquidity across Synths without needing direct counterparty matching. The SNX token facilitates staking rewards, fee distribution, and governance participation for protocol upgrades.

Synthetix milestones

• Launch of Synthetic Asset Trading: Enabled permissionless exposure to real-world assets.

• Expansion to Optimism Layer 2: Improved scalability and reduced transaction costs.

• Integration with DeFi Platforms: Strengthened liquidity for decentralized trading.

• Governance and Staking Enhancements: Increased incentives for SNX holders and protocol development.

• Growth of the Synth Ecosystem: Expanded asset offerings, including forex, commodities, and indices.

Synthetix continues to redefine decentralized finance, offering synthetic asset trading, deep liquidity, and global market accessibility for DeFi users.

Buy Synthetix (SNX) on BITmarkets.