Synthetix Docs
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  • User Docs
  • Synthetix Exchange
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V2 User Docs
  • Synthetix Protocol
    • Welcome to Synthetix
    • The Synthetix Protocol
      • Synthetix Token (SNX)
      • The Role of Stakers
      • Oracles
      • Synthetix Litepaper
    • Synthetic Assets
      • Perpetual Futures
      • Spot Synths
  • Staking
    • Depositing to the 420 Pool
    • Current Protocol Parameters
    • Staking Guide (Nearing Deprecation)
      • Steps for Staking SNX (via Minting)
      • Steps for Unstaking SNX (via Burning)
      • Steps for Claiming Rewards
      • Automating Staking, Claiming, Burning, and Minting
        • Legacy Automated Minting & Claiming
      • Understanding the Collateralization Ratio
      • Understanding Debt, Minting, and Burning
      • Simplified Debt Hedging
      • Escrow and Vesting
      • Liquidations
    • Staking FAQ
    • Bridging sUSD
  • DAO
    • Governance Framework
      • Synthetix Improvement Proposals (SIPs)
      • Synthetix Configuration Change Proposal (SCCPs)
      • Spartan Council
      • Core Contributors
      • Staker
    • Elections and Voting
      • Voting with a Gnosis Safe
    • How to write SIP/SCCPs
  • V3
    • Synthetix v3
    • Build on v3
  • Synthetix Ecosystem
    • Built on Synthetix
      • Kwenta - Spot and Perps
      • Decentrex - Perps
      • Lyra - Options
      • Polynomial - Perps and Option Vaults
      • 1inch/Curve - Atomic Swaps
    • Community Infrastructure
    • Ecosystem Operations
  • integrations
    • Perps Integration Guide
      • Introduction
      • Optimistic Sepolia Testnet Tokens
      • Technical Integration
      • Perps Subgraph
      • General FAQ
      • Tracking Codes
      • Perps Keeper
      • Liquidations
      • Useful Links
      • Migration Guides
        • PerpsV2 Mintaka -> Almach
        • FuturesV1 -> PerpsV2 (Mintaka)
    • Contract Addresses
    • Releases
  • Terms of Use
  • Brand Assets
    • Design Resources
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  1. Synthetix Protocol

The Synthetix Protocol

PreviousWelcome to SynthetixNextSynthetix Token (SNX)

Last updated 5 months ago

Synthetix is a decentralized liquidity layer on Ethereum and Optimism that serves as a liquidity backend for some of the most exciting protocols in DeFi.

Stakers provide liquidity, which collateralizes a suite of synthetic assets, and in return, earn rewards and market yields. This liquidity underwrites the trading of synthetic assets and perpetual futures at oracle prices, eliminating the need for traditional order books and counterparties. As a result, liquidity is composable and fungible across markets, and conventional slippage is removed.

Synthetix liquidity currently supports two primary synthetic assets: spot synths and perpetual futures:

  • Spot Synths track the value of real-world assets, such as cryptocurrencies, fiat currencies, and commodities, allowing users to gain exposure to various assets without holding the underlying assets

  • Perps is a decentralized perpetual futures exchange utilizing Synthetix liquidity to be the counterparty to traders, with deep liquidity and low fees. Stakers (Perp LP's) are exposed to the combined performance of all traders, as well as earning trading fees.

    • Off-chain oracles reduce fees to 5-10bps, and risk management tools ensure market neutrality over the long term.

    • Funding rate and premium/discount mechanisms incentivize traders to balance markets to become delta neutral.

Synthetix supports robust liquidity and derivatives, which has led to the development of some of the most innovative and interesting DeFi protocols built on top of Synthetix, comprising the Synthetix Ecosystem.

Synthetix Litepaper