Synthetix is a decentralized protocol for minting and creating synthetic assets (tokens on the Ethereum blockchain) – derivatives that provide on-chain exposure to assets such as gold, other cryptocurrencies, stocks of major companies, indexed and Forex, among others. The synthetic assets are created via Synthetix Network (SNX) tokens and can be exchanged directly via smart contract on Synthetix.Exchange.
Synthetix was founded in December 2016 by Kain Warwick. As of May 2020, the total value locked in Synthetix exceeded $120 million.
Synthetix ecosystem includes several decentralized applications (dApps):
- Synthetix.Exchange that provides infinite liquidity, p2p contract trading and distributed collateral pool.
- Minter staking tool that allows users to lock their SNX tokens to mint synths and collect fees
- Synthetix dashboard with an overview of the network
While the vast majority of asset tokenization initiatives on blockchain lies through the centralized bodies, Synthetix represents an alternative path to tokenized securities, remaining a fully decentralized organization that “does away with many of the legal and practical issues that so far prevented tokenized assets from rising to more than niche applications”, according to the opinion of Framework Ventures’ co-founder Michael Anderson.