Synthetix

Synthetix (SNX) is a decentralized finance (DeFi) protocol that allows users to mint and trade synthetic assets, known as Synths, which track and provide returns for various assets without requiring direct ownership. These assets include real-world currencies, commodities, cryptocurrencies, and indices. The protocol operates on the Ethereum blockchain and uses the Synthetix Network Token (SNX) as collateral for minting Synths.

The platform features a set of composable and decentralized smart contracts. The Synthetix staking decentralized application (dApp) enables users to stake collateral to contribute liquidity to the ecosystem, earning weekly inflation incentives and trading fees. The Synthetix protocol is governed by decentralized representative councils, elected by stakers.

The Synthetix protocol provides an infrastructure for issuing (through minting) synths, such as synthetic versions of BTC (sBTC), USD (sUSD), through asset overcollateralization. That collateral is provided in the form of the Synthetix Network Token (SNX), which also serves as the utility token of the ecosystem. SNX is used for staking rewards and decentralized governance through community voting.

Synthetix aims to ensure traders can gain exposure to certain assets that do not exist on the Blockchain. Synthetix enables the creation of indices like the DeFi Index, which tracks the price of a basket of multiple DeFi assets.