What is Synthetix (SNX)? Which Advantages Does It Offer?

Synthetix is a Decentralized Finance (DeFi) platform that brings assets that exist in a centralized system such as stocks, national currencies, commodities, etc. into the cryptocurrency world. This makes it possible to trade even if one does not own such underlying assets. Synthetix’s platform’s native cryptocurrency is SNX. In this article, we will look for answers to questions such as what is Synthetix Network (SNX), what does Synthetix Network (SNX) do, what are the advantages of Synthetix Network (SNX).

What is Synthetix (SNX)? What Does It Do?

Find out what Synthetix is.

Assets found in the traditional financial world, such as stocks, national currencies and commodities, don’t just have to remain centralized thanks to blockchain technology. One example of this is the Synthetix platform. In this way, even if you do not physically own the underlying asset, you can trade with these assets and earn returns. Moreover, these transactions are executed online at the same prices as these assets traded in the real world. Considering that all these transactions are carried out with the Ethereum blockchain, centralized interventions are avoided and assets are secured.

Synthetix allows users to trade gold, stocks, etc. but offer synthetic assets that are indexed to the value of those assets. These non-physical entities are defined as synthetic entities. For example, holders of SNX, Synthetix’s native cryptocurrency, can lock their holdings in Euros for additional earnings, swaps and margin transactions. In addition, SNX holders can earn SNX again as a result of staking transactions. The income that SNX stakers will receive is determined according to the income from trading on the Synthetix platform and the amount staked.

A key feature of synthetic assets is that they provide returns to users without the need to lock in other custody instruments. For example, holders and stakers of SNX, Synthetix’s native cryptocurrency, can continue to trade in synthetic euros or other units. This is actually a guarantee to users and with it freedom. To give another example; a user may want to buy Bitcoin on the Ethereum network . Then he can buy sBTC with his Ethereum balance. The same example can be given for silver. A user can obtain sAG (silver) with their Ethereum balance.

When we look at the exact uses of SNX, Synthetix’s native cryptocurrency, it is seen that it is used to carry out staking transactions, participate in governance processes, pay transaction fees and create liquidity.

What Advantages Does Synthetix (SNX) Offer?

Learn about the benefits of Synthetix.

Synthetix Network’s advantages, which enable users to gain benefits such as access to a wider choice of assets, lower transaction costs and innovation, are exactly as follows.

Asset Diversification:

Synthetix gives users access to synthetic versions of cryptocurrencies, stocks, commodities, indices and other asset classes. This allows users to have the option to invest in different markets and assets, giving them the opportunity to diversify their investments.


Synthetix users have the flexibility to trade synthetic assets. Users can trade their synthetic tokens at any time, benefit from the price movements of synthetic assets and manage their portfolios.


Synthetix works without the need for a central authority or intermediary. This allows users to invest in traditional financial investment instruments in a decentralized environment. This eliminates the need for users to rely on central financial institutions.


Synthetix uses a liquidity pool model. This model is used to determine the prices of synthetic cryptocurrencies and to enable trading. At the same time, this model allows liquidity providers to trade in synthetic cryptocurrencies and users to access liquidity more easily.

Convenience and Accessibility:

Synthetix is designed as an open protocol so that anyone can easily participate. Users can earn rewards and trade by staking cryptocurrencies or providing liquidity.

Collateral System:

Synthetix is built on a system where SNX, the platform’s native cryptocurrency, is used as collateral. Users can create synthetic cryptocurrencies by locking the SNX they own and using them as collateral. This increases liquidity and security in the system.

Innovation and Scalability:

Synthetix continuously adds new synthetic asset types and encourages innovation by improving the protocol’s features. It also aims to integrate itself into innovations in scalability, given that Ethereum is also evolving. In this way, it focuses on providing users with a good user experience with more processing capacity and lower costs.

How does Synthetix Network (SNX) Work?

Synthetix’s role is to facilitate the issuance of various cryptocurrencies, known as synthetic assets. Synthetic assets are blockchain tokens that are introduced to represent and interact with real-world assets in a market and maximize the properties of the underlying assets without physically holding them. They seek to own a comprehensive basket of assets (such as commodities, fiat currencies, bonds, etc.), remove barriers to trading and increase the liquidity of real-world assets. Synthetic assets achieve all this without sacrificing the potential of core assets such as value, liquidity and global acceptance .

Learn how Synthetix works.
Working Principle of Synthetix

Each synthetic asset is backed by a system of guarantees, participation, inflation control, fees and governance. Therefore, if you want a synthetic that represents copper, the protocol will give you the sCOPPER token. Since the token is issued on Synthetix, it is supported by the entire Synthetix infrastructure and managed by smart contracts.

This infrastructure acts as an assurance system that reduces unintended losses, controls inflation, rates, oracles and governance on Synthetix. The native cryptocurrency of the Synthetix protocol (SNX) controls these parameters. Because creating synthetic assets on the platform requires locking some owned SNXes. Synthetix works in a similar way to MakerDAO. However, while various assets can be used to print DAIs on MakerDAO, Synthetix can only print synthetics using SNX, the platform’s native cryptocurrency.

Find out how Synthetix works.

Therefore, the use of oracles is essential for the proper functioning of the Synthetix protocol. This is because they act as a bridge between real-world entities and the properties of synthetics on the blockchain. For example, if copper loses value in the global market, this information is transmitted to the Synthetix protocol and the price of sCOPPER is realigned according to the global market.

Who are the Founders of Synthetix Network (SNX)?

Learn from the founder of Synthetix.
Kain Warwick

Synthetix Network was launched by Kain Warwick in 2017. It started as Havven and was renamed Synthetix about a year later.

Kain Warwick is the founder of Synthetix. Kain Warwick graduated from the University of New South Wales with a degree in Genetics and started his career as IT director at whatcard.com. After that, he worked as a camera director at Harvey Norman and then as an assistant tennis coach at The Bay Club Company. After working as a professional sound director at Guitar Center, in 2019 he launched Pouncer, a live auction site dedicated to Australia. Kain Warwick didn’t stop there, in 2013 he created Ai, an online music retailer that provides the best prices and service for music equipment. After all this, in 2014, he became a project manager at White Labelled, a digital media company. Adding to this experience as an advisory board member and investor at Burger Collective, Kain Warwick launched Synthetix after becoming an advisory board member of the Australian Digital Commerce Association.

What Other Things to Know About Synthetix Network (SNX)?

To find out a little more about Synthetix Network (SNX), it is useful to look at the answers to some of the following questions.

Is SNX a token? Or is it a coin?

Coin is a cryptocurrency created on its own blockchain. A token is a cryptocurrency that does not have its own blockchain and is created on an existing blockchain. Since SNX does not have its own blockchain, it is a token.

Which blockchain is the SNX token on?

The SNX token was created on the Ethereum blockchain.

Is SNX token mining available?

SNX is not mined. However, users who stake cryptocurrency assets are rewarded.

How to buy SNX tokens?

To buy SNX tokens, it is sufficient to create a membership on ICRYPEX. Once the membership process is complete, trading in other cryptocurrencies including SNX tokens is fast, easy and secure.

How to Become a Member of ICRYPEX?

After visiting www.icrypex.com from a browser, you can click on the “SUBSCRIBE” button at the top right of the page, fill in the required information and you can easily create your membership.

From mobile devices, primarily;

Android users can download our app by clicking here, Apple users by clicking here and HUAWEI users by clicking here. After logging in to the application, you can click on the menu icon at the top left, then click on “SUBSCRIBE” to fill in the required information and easily create your membership.