How it works

The platform allows users to create synthetic assets called Synths on the Ethereum blockchain. Synths, in the form of ERC-20 tokens, track the value of their underlying assets. The price data is fed acquired from Chainlink oracles (see the Chainlink entry in this guide).

To create new Synths, users provide collateral in the form of SNX — the platform’s native token. SNX holders are also incentivised to actively participate in maintaining the health of the system via staking.

Keep in mind

Synths can provide exposure to the underlying asset’s price, but investing in a Synth isn’t the same as owning the asset itself — for one, you don’t gain any of the voting rights that shareholders may receive.

Released: February 2018