Find out about Synthetix (SNX), it’s easy!

What is Synthetix Network?

Abbreviated as SNX, Synthetix is a DeFi protocol that gives users access to derivative instruments via the blockchain. In DeFi, these kinds of derivatives tokenised on the blockchain are known as “synthetic assets”. While derivatives are financial instruments that derive their value from simple instruments such as commodities and stocks, synthetic assets add a step: the derivative is tokenised, and its value is reflected on the blockchain through decentralised oracles. The major advantage of a protocol like Synthetix is the ability to decentralise access to traditional assets and even those underpinned by physical resources. 

Why follow Synthetix Network?

As well as a platform for synthetic assets, Synthetix is also a decentralised exchange. This gives anyone the opportunity to create “synthetic” assets and freely exchange them among the community. The native token is called SNX (Synthetix Network Token) and is mainly used to generate synthetic assets. By depositing SNX collateral in a debt pool, an overcollateralised quantity of synthetic assets can be generated. The protocol is not an end in itself: the tokens generated on Synthetix are compatible with all Ethereum protocols and can therefore be used on DEXs and DeFi protocols throughout the ecosystem.

How was it created?

The founder of Synthetix is Kain Warwick, and development for the project started in autumn 2017. It took several years for the protocol to take off. Today, Synthetix boasts important partners (1inch, Curve, Drudge, ParaSwap) and offers DeFi services that make it stand out in the industry.