Synthetix is a software that enables users to create new crypto assets that are a combination of real-world assets (such as the US dollar) and crypto-assets (like Bitcoin).
Synthetix, one of the growing number of decentralised finance (DeFi) cryptocurrencies, provides this function entirely via code, eliminating the need for a financial middleman. Synthetix is only a collection of smart contracts that operate on the Ethereum network.
This implies that Synthetix users do not have to rely on a specific organisation or individual to handle the crypto assets they generate. They merely need to believe that the code will run as intended.
To collateralize an asset on Synthetix, customers must first acquire its SNX coin, which can then be used to construct these new assets once locked into a unique contract (called “synths”).
For example, sUSD is a synth designed to mimic the value of the US dollar. sBTC is another synth that simulates the Bitcoin price. However, synthesisers may be developed for any asset, whether it is a commodity such as gold or silver, or a currency such as a euro or Korean won.
){kind=link}