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.

--

--

--

Cryptology is one of the best professional digital asset exchange platforms that provide trading services among major digital currencies like Bitcoin, Litecoin

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

DuckDAO x Dora Factory: Empowering Open-Source Projects

The Secrets Behind Blockchain Technology

Phaeton ESG Infrastructure Explained

Sport + Blockchain = a Better World

NFTs Account For Over 10% Of Global Contemporary Art Sales — Here’s What You Did Not Know About…

QuarkChain Bi-weekly Project Progress Report: Aug. 20 — Sept. 4

OIG AMA with MetaBrands

SlowMist assists Huobi Eco-Chain and OKExChain to jointly maintain ecological security

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Cryptology Exchange

Cryptology Exchange

Cryptology is one of the best professional digital asset exchange platforms that provide trading services among major digital currencies like Bitcoin, Litecoin

More from Medium

UNDERSTANDING BLOCKCHAIN FOR BEGINNERS.

[Introduction to HERO #002] Pythagoras

Why should I care about web3? From someone who started about five minutes ago.

Chapter 2: How Framed NFT works