Synthetix Network: – All you need to know about Synthetix (SNX)

Synthetix (SNX) is one of the topmost Decentralised Finance (DeFi) platforms. Synthetix’s native token SNX is at no. 7 in terms of market capitalization. Synthetix is essentially a decentralized exchange but also works as a synthetic asset issuance platform. This […]

Prasanna Peshkar

Prasanna Peshkar

February 18, 2021 2:16 PM

Synthetix Network: – All you need to know about Synthetix (SNX)

Synthetix (SNX) is one of the topmost Decentralised Finance (DeFi) platforms. Synthetix’s native token SNX is at no. 7 in terms of market capitalization. Synthetix is essentially a decentralized exchange but also works as a synthetic asset issuance platform. This post is a basic guide about the Synthetix network.

What is Synthetix?

Synthetix was formerly identified as Havven and conducted its ICO in February 2018 for its ERC-20 token, HAV. At that time, the purpose was to be a decentralized payment network that utilizes a twin token policy to circulate stable coins (nUSD) financed by HAV as security.

Moving ahead, the team recognized that they can achieve so much more than just building a stable coin. The significant update or rebranding to Synthetix was declared on 30th Nov 2018 and HAV was converted to SNX.

What does Synthetix do?

Synthetix enables users to circulate and trade synthetic assets, which are representatives of real assets such as cryptocurrencies, fiat currencies, stocks, products, and practically anything that has a price. In this, traders trade on collateral and not any particular opposite party in a contract or business transaction. Traders can also purchase and sell synthetic assets, expected to run by off-chain oracles and they have primary access to derivatives and investable baskets.

In other words, it permits users to gamble on cryptocurrencies and just about any real-world assets like commodities, fiat currencies, high-priced metals, etc. Like most Defi projects, Synthetix is developed on Ethereum.

Synthetix – Transforming the world of Investment!

Before we dive deeper into the Token behind Synthetix, it is necessary to know what does this blockchain holds for and understand its principal object to get if it really has a useful application in our fast-changing world.
In laymen’s words, Synthetix is a software that enables users to get shown to trading derivatives. If you don’t understand what derivatives are, they are just mixed financial products that enable users to trade assets with the application of contracts, without holding the actual asset, pretty much like CFD trading, but with many added opportunities and adaptability.

In conventional finance, derivatives are normally utilized to hedge investment opportunities or made to profit immensely from price discrepancies. But they are normally traded on centralized exchanges or over-the-counter intermediaries. What Synthetix is seeking to accomplish is renewing those centralized entities with smart contracts, as it runs on Ethereum’s ERC20, hence eliminating the middlemen parties and aggregating smart contracts. How neat is that!

A wide class of financial means exists within Synthetix, such as fiat currencies, cryptocurrencies, commodities, and inverse indexes. In principle, the arrangement can hold any asset at a fair price and gives on-chain exposure to an extensive array of real-world assets. The protocol will allow a class of trading characteristics including binary options, futures, and more.

What is the SNX token?

The SNX token serves as a base. Synthetix utilizes a multi-token foundation. It is painted on a method of collateral, staking, expansion, and expenses. The method utilizes two kinds of tokens–the principal Synthetix Network Token (SNX) and synthetic assets or Synths. The method is comparable to MakerDAO’s where ETH is secured to build DAI. In Synthetix, SNX is secured or locked up to build sUSD (synthetic USD). The sUSD serves as money while SNX serves as the collateral. The primary contrast between Synthetix and MakerDAO is SNX is staked as security to possibly build any synthetic asset–not just sUSD. 

As mentioned earlier, Synth tokens are synthetic assets that follow the cost of real assets. They are issued by securing up SNX tokens. Synths can be of any kind and they are indicated by ‘s’. For example, fiat synths are sEUR, sUSD, SRMB. Other varieties of Synths are sTSLA (synthetic Tesla), sAAPL (synthetic Apple), sBNB (synthetic Binance Coin), sAu (synthetic gold), , sDEFI (synthetic DeFi Index). Now, when new Synths are issued, stakers extend a debt. Hence, they require to return the same value in Synths before they can get their SNX tokens.

In short, Synthetix is a decentralized asset protocol developed on Ethereum. These Synths are produced by staking the Synthetix Network Token (SNX), and these Synths can be traded for each other with the smart contracts on

How does Synthetix Exchange work?

The Synthetix Exchange is a decentralized exchange (DEX) created on the Synthetix protocol. It currently has 19 assets and 31 trading pairs. It is one permissionless exchange. It means that it has no boundary limitations and permits anyone in the world to use its market. Users can visit the and enter using any wallet such as MetaMask. 

Where to buy SNX?

The most obvious place to obtain SNX is on Uniswap. It’s decentralized, and there’s no necessity to create an account or enter private information. Here is the list of places from where users can buy SNX.

How do I stake Synthetix Network Tokens?

  • Visit
  • Select the Mint option
  • Click Max to open the maximum amount of sUSD you’ll be provided to mint based on your SNX holdings
  • Set the amount to as per the strategy, and then click Mint, and validate the transaction.

SNX stakers get two types of rewards. First, they get SNX staking rewards, that are generated within the inflationary financial plan. Next is Synth exchange rewards, which are generated by Synth trades on

What can you do with sUSD?

There are various methods to obtain the assets required to trade on the Kwenta UI of Synthetix Exchange.

First, connect with Metamask or the hardware wallet. There is no need for registration, Sign-ins, or KYC. Next, it will display ETH and Synths. To trade, users must first have Synths and some ETH to settle for transactions. After this, select the amount of ETH you want to exchange for sUSD, or the amount of sUSD you want to purchase utilizing ETH. Next, After you have obtained some Synths, you can utilize them to purchase other synths. Finally, you will see the prompt A prompt will appear and after your transaction is confirmed on the blockchain, your trade is done!

Prasanna Peshkar
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Prasanna Peshkar

Prasanna Peshkar is a seasoned writer and analyst specializing in cryptocurrency and blockchain technology. With a focus on delivering insightful commentary and analysis, Prasanna serves as a writer and analyst at CryptoTicker, assisting readers in navigating the complexities of the cryptocurrency market.

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