Synthetix is a decentralized exchange that operates on blockchain technology. It allows users to trade synthetic assets, known as Synths, which mirror the value of real-world assets like currencies, commodities, or other cryptocurrencies. The platform is decentralized, meaning it functions without a central authority overseeing transactions. Trades are conducted directly between users with the help of automated smart contracts, ensuring security and transparency. Synthetix uses SNX, ETH, and LUSD as collateral to issue these Synths, with SNX tokens playing a crucial role in the system's security and stability.

Synthetix operates by allowing users to stake their SNX tokens in a staking pool. These staked tokens serve as collateral for the issuance of synthetic assets (Synths). Synths track the value of real-world assets, providing users with exposure to these assets without the need to hold them directly. The platform tracks the underlying assets using smart contract price delivery protocols called oracles. The protocol has transitioned to the Optimistic Ethereum mainnet to help reduce the gas fees on the network and lower oracle latency.

Synthetix aims to provide a more robust financial market by introducing non-blockchain assets. It serves as a backend for many protocols, providing deep liquidity and low fees. This makes it a valuable tool for protocols that require deep liquidity, such as Kwenta (Spot and Futures), Lyra (Options), Polynomial (Automated Options), and 1inch & Curve (Atomic Swaps). The protocol also allows users to autonomously trade and exchange synths, providing a decentralized exchange (DEX) platform for synthetic assets. Additionally, Synthetix has a staking pool where holders can stake their SNX tokens and receive a share of the transaction fees on the Synthetix Exchange.

Synthetix was launched in September 2017 by Kain Warwick under the name Havven (HAV). About a year later, the company rebranded to Synthetix. Warwick, the founder of Synthetix, is a non-executive director at the blueshyft retail network and has worked on several other cryptocurrency projects. He also founded Pouncer, a live auction site exclusive to Australia. The project’s CEO, Peter McKean, has over two decades of experience in software development, and the COO, Jordan Momtazi, is a business strategist, market analyst, and sales leader with several years of experience in blockchain, cryptocurrency, digital payments, and e-commerce systems. The CTO, Justin J. Moses, was the former director of engineering at MongoDB and deputy practice head of engineering at Lab49. He also co-founded Pouncer.