What is Synthetix ?
Synthetix is a synthetic asset issuance and trading protocol. Synthetix has introduced the concept of synthetic assets and helps users track the value of various on-chain and off-chain assets like cryptocurrency, fiat currency, stocks, etc. Synthetix has two types of tokens: SNX and Synth. SNX is the primary native token issued by Synthetix and is available for trading. You can mint various types of synthetic Synth by collateralizing the SNX token. Each kind of Synth tracks the price of its corresponding asset (cryptocurrency, bulk commodity, stocks, fiat currency, etc). E.g., sETH for ETH, and iETH for a bearish version of ETH. iETH's price goes against with ETH. You can hold the minted Synths or trade them on Synthetix's exchange. It's worth noting that there is no counterparty required for the trade. The Synth you sold will be converted directly to the Synth you aim to buy, which provides almost infinite liquidity. You can close a profit position by selling the Synths to sETH, sUSD, then exit via Uniswap, Curve. Uniswap currently has over 20,000 ETH in its sETH liquidity pool, and Curve has over $10 million in its sUSD liquidity pool. The ratio of the value of the collateralized SNX to the value of the synthetic Synth must exceed 750%. Pledgers receive the trading fee from the Synthetix exchange as the reward of the collateralized SNX. The price of Synth is obtained from oracle's feed. Synthetix mainly uses its partner Chainlink's oracle service currently.