Synthetix protocol
Overview
Synthetix is a decentralized derivatives liquidity protocol on Ethereum and Optimism. It allows users to mint synthetic assets (Synths) by staking SNX as collateral. The protocol enables trading of synthetic fiat currencies, commodities, cryptocurrencies, and indexes without order book slippage.
Within the DeFi Intel graph, Synthetix connects to 20 tracked entities, most strongly to Optimism, sUSD, SNX.
Relations
Top connections in the DeFi Intel knowledge graph (confidence-weighted, 9 of 20 total).
| Relation | Connected entity | Confidence |
|---|---|---|
deployed_on | Optimism | 95% |
issues | sUSD | 95% |
issues | SNX | 95% |
governed_by | Synthetix DAO | 95% |
founded_by | Kain Warwick | 95% |
deployed_on | Arbitrum | 90% |
deployed_on | Base | 90% |
integrates | Pyth Network | 90% |
integrates | Chainlink | 90% |
Frequently asked questions
What is Synthetix?
Synthetix is a decentralized finance (DeFi) protocol for creating and trading synthetic assets. Users stake SNX tokens to mint Synths, which track the value of real-world assets via a collateralized debt pool.
How does Synthetix maintain the peg of synthetic assets?
Synthetix maintains peg through a collateralized debt pool where SNX stakers back all Synths. The system uses trading fees and network incentives to balance debt, with arbitrage opportunities ensuring Synths trade near their target values.
What are the main synthetic assets on Synthetix?
Common Synths include sUSD (US dollar), sBTC (Bitcoin), sETH (Ethereum), and synthetic commodities like silver and gold, as well as equity indexes such as sTSLA and sAAPL.
What is Synthetix connected to?
In the DeFi Intel knowledge graph, Synthetix is linked to 20 other tracked entities, most strongly to Optimism, sUSD, SNX.
Sources
Live news feed, full graph, and search.