Synthetix is a decentralized finance protocol built on the Ethereum blockchain that enables the creation of synthetic assets, also known as "synths." Synths on Synthetix represent various real-world assets, such as commodities, cryptocurrencies, and traditional currencies, allowing users to gain exposure to these assets without actually owning them.
Synthetix employs a unique collateral model using its native cryptocurrency SNX. Users lock SNX tokens as collateral to mint and trade synths on the platform. SNX holders are incentivized for providing collateral and maintaining the stability of the system through the issuance of rewards.
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