What is Synthetix - Simply Explained

Synthetix is a decentralized token exchange platform built on ethereum block chain.

Synthetix allows users to place bet on crypto asset, stocks, currencies,precious metal and other asset in form of ERC -20 tokens.

It started as a stable crypto asset but later turned into Defi platform allowing users to trade crypto in decentralized way.

What is Synthetix?

Synthetix is a decentralized exchange platform that allows users to trade digital assets along with commodity, stocks, currencies and precious metals.

Synthetic asset or Synths copy the price of real world asset and bring them into the Ethereum block chain giving the Synth all the features of an ERC-20 token.

Holding Synth doesn't mean your holding an real world asset it's not same as holding an real asset.

Synth only represents value of an asset. For example a Synthetix MKR token is the same price as a real MKR token but without the voting rights of an actual MKR token holder would have.

This allows users to bet on the price of an asset without holding the actual asset in real time.

Who invented Synthetix?

Synthetix started as a stable coin project called havven coin.

It was founded by Kain Warwick the current CEO of Synthetix.

Synthetix is one the biggest project in Defi with over $180 million worth of asset locked up in the protocol.

It's a similar project like MakerDao.

Why it's so special?

Synthetix uses a multi - token infrastructure system built on Ethereum with a system of collateral, inflation, fees and staking.

The system uses two types of token inside the platform main token is Synthetix (SNX) and Synths asset that represents value of an asset.

In Synthetix, SNX is locked up to create SUSD (Synthetix USD) which is an Stable crypto.

The SUSD (Synthetix USD) acts as debt while Synthetix acts as the collateral.

The main difference between MakerDao and Synthetix is SNX is staked as collateral to create any potential asset along with SUSD.

One of the core requirements for the Synthetix system is the ability to get accurate information from the outside world such as price of us dollar, japanese yen, gold or stocks.

Synthetix partnered with chain link to bring real time price and information to block chain using their decentralized oracle system.

How Synthetix tokens are produced?

In Synthetix's early days as havven coin it Launched an ICO ( Initial coin offering) and raised over $30 million dollar in funding with a supply of 100 million coins.

In February 2019, Synthetix changed it's monetary policy and changed it's supply to 164 million by changing its name to synthetix.

How to buy Synthetix?

Synthetix is an Ethereum based ERC -20 token that can be purchased on any decentralized platform such as uniswap, kyber and paraswap.

What can you do with Synthetix?

Synthetix platform was primary built for users to trade synths in a decentralized way.

Holders can use synths token to place bet on any asset, commodities, precious metal and even stocks.

If they believe the price of their asset will go up they long it and if they believe the price of their asset will go down they short it.

By staking Synthetix (SNX) users can create new synths token, collect rewards and watch their holdings to grow.

Future of Synthetix

Synthetix raised over $30 million dollar in their ICO most of which they used to develop Defi dapp charts with a commitment to a decentralized governance system.

Decentralized dapp with ability of using multiple asset on the same platform is truly remarkable.

Most of the traders were waiting to trade their stocks and precious metal in a decentralized way which Synthetix is already working on

Stocks like Tesla, Google and Apple on the top of Ethereum block chain is truly a game changer.