Synthetix (SNX), launched in September 2017 as Havven and rebranded in 2018, Synthetix is a decentralized protocol on Ethereum and Optimism for issuing and trading synthetic assets (Synths) that track real-world assets like currencies, commodities, and cryptocurrencies. SNX token holders stake their tokens to provide liquidity and earn rewards.

Key Features

  • Synthetic Assets (Synths): Synths (e.g., sUSD, sBTC) mirror asset prices without direct ownership, using oracles for real-time data.
  • Decentralized Perps: Offers perpetual futures with off-chain oracles, powering platforms like Kwenta and Lyra.
  • Multi-Chain Support: Operates on Ethereum and Optimism, with plans to sunset Base support in 2025.
  • Ecosystem: Trades on 260+ exchanges (e.g., Binance, Kraken) and integrates with 177+ markets and wallets like MetaMask.

SNX Token

  • Purpose: Used for staking, governance, and collateralizing Synths, with stakers earning fees from protocol activity.
  • Supply: ~343M SNX in circulation, with a maximum supply of 343M (fully diluted as of February 2021).
  • Contract Address: On Ethereum, SNX’s contract is 0xc011a73ee8576fb46f5e1c5751ca3b9fe0af2a6f (addable to MetaMask) CoinGecko CMC.

Who Are the Founders of SNX?

Synthetix was founded by Kain Warwick, with key contributions from Justin Moses (CTO) and Jordan Momtazi. Launched via a $30M ICO in 2017, the project transitioned to a decentralized model on Optimism to reduce gas fees. Backed by investors like Paradigm and Coinbase Ventures, Synthetix is governed by a community DAO.

What Makes SNX Unique?

Synthetix stands out in Web3:

  • Deep Liquidity: Provides backend liquidity for DeFi protocols like Kwenta, Lyra, and Polynomial, with ~$54M annualized revenue.
  • Decentralized Derivatives: Enables permissionless futures and options trading, competing with centralized exchanges.
  • Deflationary Shift: Ended token inflation in December 2023, adopting a buy-and-burn model.
  • Cross-Chain Synths: Supports assets across Polygon, Avalanche, and Fantom, though scaling challenges persist.

SNX Network Upgrades (2025)

  • Perps V3 (Q1 2025): Enhanced perpetual futures with lower fees and improved oracle latency.
  • Infinex Launch (March 2025): Introduced a decentralized front-end mimicking CEX usability, boosting trading volume by 15%.
  • Ethereum L1 Focus (June 2025): Shifted from Base to Ethereum mainnet, closing Base LP vaults to prioritize scalability.

How Is SNX Secured?

Synthetix and SNX are secured through:

  • Ethereum/Optimism PoS: Leverages Proof-of-Stake for transaction and contract security.
  • Smart Contract Audits: Regular audits by Trail of Bits and OpenZeppelin ensure protocol integrity.
  • Staking Collateral: SNX, ETH, and LUSD collateralize Synths, with over-collateralization protecting against volatility.
  • DAO Governance: Community-driven decisions via SNX token holders prevent centralized control.

Conclusion

Synthetix (SNX) is a cornerstone of DeFi, enabling synthetic assets and decentralized derivatives. Its liquidity powers protocols like Kwenta and Lyra, while upgrades like Perps V3 and Infinex enhance usability. Despite challenges with multi-chain scaling, Synthetix’s deflationary model and focus on Ethereum position it as a leader in Web3 derivatives.