Garth Travers

Synthetix is a DeFi protocol specializing on minting and trading crypto synthetic assets on the Ethereum blockchain.

Synthetix is a software that allows users to mint new crypto assets that mimic both real-world assets (like the U.S. dollar) and crypto assets (like Bitcoin). 

One of an emerging number of decentralized finance (DeFi) cryptocurrencies, Synthetix enables this service through code alone, without the need for a financial intermediary. Rather, Synthetix is simply a collection of smart contracts running on the Ethereum blockchain. 

This means Synthetix users do not need to trust a particular institution or person to manage the crypto assets they create. They need only trust that its code will execute as written.

Synthetix is able to generate these new assets using a process called collateralization. 

To collateralize an asset on Synthetix, users must purchase its SNX cryptocurrency, which once locked in a special contract can be used to generate these new assets (called synths). 

For example, one synth designed to mimic the value of the U.S. dollar is called sUSD. Another synth, which mimics the Bitcoin price, is called sBTC. Still, synths can be created for any asset, be it a commodity like gold or silver, or cash like the euro or Korean won. 

Synths are then able to track the value of other assets using special data feeds, called oracles, which enable users to gain exposure to gains or losses in those markets.

As of August 2020, Synthetix is among the DeFi projects with the most value locked in its contracts, with over $800 million locked in its contracts according to available data. 

Garth Travers

Synthetix. Communications Manager

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Synthetix (Communications Manager)