Synthetix is a decentralized liquidity provisioning protocol built on Ethereum in 2018, aiming to enable the issuance and trading of synthetic assets. The protocol currently supports the issuance of synthetic assets including fiat currencies, cryptocurrencies, and commodities. The system may theoretically support any asset with a known price and allow on-chain exposure to an infinite number of real-world assets. Synthetic assets (called Synths) are generated by staking Synthetix Network Tokens (SNX), and these assets can be traded directly on the Synthetix exchange. Users staking SNX receive rewards from two sources: trading fees on the Synthetix Exchange and weekly distribution of SNX through inflation.
