Financial Derivatives Platform Like Synthetix

Build a decentralized financial derivative liquidity-based platform like Synthetix to assist the Web3 world in existing amidst the tides and ebbs of the crypto market.

Talk With Our Expert

What is Synthetix?

Synthetix is a decentralized finance protocol based on issuing synthetic assets similar to derivatives in the traditional finance world. The platform runs on Ethereum and Optimistic Ethereum, a Layer-2 solution of the Ethereum network. Synthetic assets or Synths are virtual smart contract tokens that track and provide returns for other types of financial assets. Synth tokens are based on the ERC-20 standard, and $SNX is the native cryptocurrency of the platform. $SNX can be used for collateralizing and staking to mint Synths. Conversions between Synths can be made directly using smart contracts of the platform, hence, eliminating the need for intermediaries.

Essential Features of a DeFi Platform Like Synthetix

SynthsTokens based on price-tracking smart contracts that represent various assets. These can be held and exchanged by crypto investors who cannot normally access such assets.

P2P TradingSince a DeFi platform like Synthetix runs based on price-tracking oracles, trades are truly peer-to-peer, without needing to worry about matching or processing through intermediaries.

MintingUsers can mint Synths by collateralizing native tokens on the smart contract. Tokens might be unlocked if their prices increase, which can be staked for minting.

ExchangingUsers can exchange between different Synths effortlessly as no order books or matching engines are involved, ensuring infinite liquidity without needing to record debt changes.

Claiming FeesWhile exchanging Synths, a fee is taken by the smart contract to an exclusive pool that can be claimed by native token stakers as incentives.

Staking RewardsNative token stakers can also earn staking rewards in the form of native tokens while claiming a share of Synth exchange fees, as seen earlier.

Debt BurningIf a user wants to exit the staking system, they should burn debts that will unlock their collateral. The amount might vary depending on circumstances.

Debt PoolDebt pools in a Synthetix-like platform monitor debts by providing debt share tokens to stakers. A staker’s debt percentage can be calculated based on these shares.

Lead the DeFi Movement Forward with a Novel DeFi Platform Like Synthetix!

Schedule A Meeting Talk with our Experts

More on Synthetix Assets

Forex

Forex Synths track prices of fiat currencies through feeds provided by decentralized oracle smart contracts.

Commodity

Commodity Synths discover prices of expensive items such as precious metals through feeds from oracles.

Crypto

Crypto Synths track rates of cryptocurrencies and stablecoins through price data supplied by decentralized oracles.

Index

Index Synths discover costs of indices that track the price movement of an asset group.

Inverse (iSynths)

iSynths inversely trace the prices for any asset that helps traders take a short position.

Various DAOs in a Platform Like Synthetix

Governance DAOResponsible for conducting interviews for approving proposals, discussing impacts of proposed changes, coordinating protocol changes, and hosting community governance meetings.

Protocol DAOResponsible for maintaining the platform’s core smart contracts, including updates and releasing new contracts on behalf of the governance DAO.

Treasury DAOResponsible for managing the platform’s treasury to ensure that incentives are properly distributed to members to keep the platform running.

Ambassador DAOResponsible for attracting support from members who provide governance tokens to the protocol’s wallet to participate in external governance systems.

Grants DAOResponsible for vetting, issuing, accepting, and funding proposals, along with hosting public outreach events and external developments with their funds.

Core ContributorsResponsible for supporting operations based on developmental and non-development aspects of the platform like Synthetix, including development, design, and marketing.

“The Decentralization of Finance is really good for humanity and it’s ultimately a win for each and every one of us.” – Henry Smith

Benefits of a Synthetix-like Platform

Price ExecutionA DeFi platform like Synthetix will have little to zero slippage due to its huge debt pools and liquidity provisions.

Low Downtime Such a DeFi platform will have low downtimes even during high volatility as smart contracts eliminate the risk of liquidation.

Permissionless A Synthetix-like DeFi platform can operate without permissions, and Web3 projects can easily integrate perpetual futures powered by the platform.

StakingStaking native tokens in such platforms serve as collateral for minting Synth assets and earning rewards based on fees and supply.

Trading Synths can be traded seamlessly through spot and futures markets with almost no slippage and high liquidity in all assets.

Building Other DeFi projects can build upon such a platform due to its composable nature that ensures operations occur smoothly anytime.

Blockchain App Factory – A Pioneer Excelling in Novel Web3 Applications!

Blockchain App Factory has been at the forefront of innovation for a long time. Our skilled professionals have been part of realizing many astounding Web3 projects. With time, we add new capabilities to our arsenal, and developing a DeFi platform like Synthetix is one of our latest abilities. Our DeFi products have been the result of deep research and development procedures, combined with our access to state-of-the-art Web3 technologies. The DeFi movement has been progressing steadily to begin a revolution, and this is the perfect time for an enthusiastic venture to get into the DeFi space. A novel DeFi application like Synthetix can be the ideal choice if you have such plans. Talk to us to begin realizing a novel business dream of yours.