Gain exposure to a vast range of assets with Synthetix
In this article, we will consider an Ethereum-based project that allows you to create synthetic assets. We will talk about the Synthetix project.
Synthetix or Synthetix Network Token (SNX) is a DeFi platform that allows you to issue synthetic assets in the Ethereum blockchain.
The essence of a synthetic token is that it copies the price of an asset from the real world, transferring it to the Ethereum blockchain and providing Synthetix with all the properties of the ERC-20 token.
History of the platform’s creation
Initially, the Synthetix project was created as Havven by the current CEO Cain Warwick and launched in 2017. But in 2019, after DeFi appeared on the market, there was a rebranding and the project already received its current name and functionality.
Synthetix main features
The platform uses a multi-token infrastructure based on a system of collateral, staking, inflation and commissions. The project uses two types of tokens: SNX and synthetic assets — Synth.
One of the main terms of the system is the ability to get accurate information from the real world. For example, the price of any fiat currency or shares. Previously, Synthetix used centralized price channels or oracles to obtain such information, but then they became vulnerable to exploitation. At the moment, the project interacts with ChainLink, which provides them with complete security.
Forecasts of the project’s development
Many crypto experts believe that the Synthetix platform is an almost perfect embodiment of Satoshi Nakamoto’s ideas about cryptocurrency, since the project token has a wide functionality within the ecosystem.
But taking into consideration the fast-growing DeFi market, Synthetix should improve and expand its capabilities not to lose their advantages over newcomers.