What is Synthetix (SNX)? Crypto Meets Traditional Finance 2025

What is Synthetix? Synthetix is a decentralized finance protocol (DeFi) created for issuing and providing “synthetic assets” on the Ethereum network. These assets, known as Synths, typically represent content traded in TradFi; ranging from stocks, funds, commodities, to fiat currencies, and more. By 2025, Synthetix has evolved into the cornerstone of decentralized derivatives trading with its V3 architecture, integrating Kwenta, Lyra, and Derive to become a unified DeFi derivatives hub, locking in a value of $1.2 billion, with a daily trading volume of $420 million, and enhancing oracle infrastructure to become the primary bridge between TradFi and DeFi.

Latest developments in 2025

By 2025, Synthetix has undergone significant transformation, evolving from its initial vision into the cornerstone of decentralized derivatives trading. The platform’s V3 architecture will be fully deployed in 2024, achieving the goal of becoming a permissionless derivatives protocol with unprecedented scalability.

The protocol has successfully integrated several ecosystem projects:

• Kwenta (spot/futures trading)
• Lyra (options)
• Derive (acquisition at the end of 2024)

These strategic acquisitions have made Synthetix a unified DeFi derivatives hub, rather than a decentralized protocol sharing liquidity.

After experiencing a decoupling issue in early 2024, the stability of sUSD has significantly improved. Gate now offers enhanced Synthetix services, including leveraged SNX staking products with competitive annual yield rates and cross-chain synthetic asset trading.

The oracle infrastructure of Synthetix has been upgraded, incorporating redundant data sources, significantly improving price accuracy and reducing the manipulation risks present in earlier implementations.

As traditional finance continues to merge with DeFi, Synthetix serves as the primary bridge between these two worlds, providing tokenized exposure to global markets without traditional barriers.

Crypto Assets and TradFi Hub - An Insight into Synthetix (SNX)

What is Synthetix?

Synthetix is a decentralized financial protocol (DeFi) used to launch and provide “synthetic assets” on the Ethereum network. These assets, known as Synths, typically represent assets that are commonly traded in TradFi, such as stocks, funds, commodities, fiat currencies, and more.

How does Synthetix work?

Synthetix requires the platform to create different tokens, each representing a specific synth, supported by a collateral, inflation control, governance, and fee system. For example, sSilver may be a token representing the global silver market. To ensure that the token price matches the real-world price, blockchain oracles are used to connect the two realms and provide real-time, consistently accurate information.

SNX token:

Due to its limited supply - a total of 255 million coins, SNX has two core functions: it is the mandatory token required for creating Synths, used as collateral through staking, and serves as a governance mechanism, allowing SNX holders to vote on improvement proposals.

How to buy SNX:

You only need to create an account on the Gate exchange. Gate account then go to the trading area and select spot trading You can make a purchase. After entering the spot trading page, search for Synthetix or SNX in the search box at the top left corner to see which trading pairs are available for trading.

How to store SNX:

Once you purchase assets on Gate, you can immediately enjoy top-quality asset management services, which can be accessed through the wallet menu in the upper right corner of the official website homepage. Just enter Fund Overview On the page, select the account for the assets you want to view.

How to stake SNX:

Gate provides staking solutions for thousands of crypto assets, including staking SNX. If you want to stake Synthetix, please go to the Gate finance menu on the top menu bar of the official website and then click Wealth Management Treasure After entering the Wealth Management page, click on the Current Account category to view what Synthetix options are currently available.

The financial world is dominated by stocks, currencies, net assets, commodities, and other exchanges from securities markets and exchanges around the world. Although the crypto market has been growing significantly over the past 13 years, it is still far from the trillion-dollar scale of TradFi.

However, it does provide an opportunity to connect these two worlds. What if TradFi could also dabble in Crypto Assets, gaining access through a more easily obtainable and investable decentralized resource? This is exactly the goal that Synthetix aims to achieve. To obtain these functionalities, the project has created several decentralized tools that allow the Crypto Assets market to interact and become a hub for TradFi.

In this article, we will reveal what Synthetix is and how it brings the crypto market and TradFi closer together.

What is Synthetix?

Synthetix is a decentralized finance protocol (DeFi), fully named Synthetix Network Token (SNX), used to launch and provide “synthetic assets” on the Ethereum network. The SNX token guarantees the availability and funding of these assets, and it is responsible for allowing synthetic assets to exist on-chain and interact with the platform. These assets can represent almost anything, but TradFi is the focus; from stocks to funds, commodities, and fiat currencies, they all belong to the main asset categories of traditional finance.

The purpose of Synthetix is to provide users with easy access to traditional markets. Most people might think the opposite; that Crypto Assets are harder to obtain than TradFi. In fact, traditional finance requires a lot of compliance procedures, and if new users do not have a reliable investment record or do not have a sufficiently large central savings account to prove their investment experience, most exchanges will not accept new user accounts. Not to mention the fees, which in TradFi have exceeded substantial levels. With the Synthetix platform, synthetic assets of any kind that the platform desires can be created.

What is Synth?

But what exactly are synthetic assets? On Synthetix, they are referred to as “Synths.” Synths are essentially digital synthetic versions of assets from other markets, completely separate from Crypto Assets. The purpose of creating these assets is to parallel with these markets – to interact and enjoy the properties of these assets without having to own them outright. With Synths, users can access different assets from all types of markets around the world without dealing with the traditional hassle of processes such as custody, asset-centered taxation, and other demands that may arise from TradFi transactions. At the same time, they will also leverage beneficial factors, such as value appreciation brought by market volatility and the ability to trade and sell when needed.

How does Synthetix work?

A fast decomposable reward system allows users to create new Synths in order to earn SNX token rewards.

Synthetix requires the platform to create different tokens, each representing a specific synth within the platform. Each synth is supported by a funding collateral, inflation control, governance, and fee system.

For example, if someone wants to create a synth that represents the silver market, Synthetix will create a new token for this synth—possibly under the title of sSilver (the first “s” stands for synthetic). This new token within the Synthetix network will be unified by a smart contract-based governance framework, along with all DeFi projects and applications. This framework serves as the warranty infrastructure of the system, designed to avoid impermanent loss, control inflation, and ensure that each synth operates as expected. After all, each synth represents not a static asset, but rather an unpredictable, volatile asset that requires a fail-safe network to synthesize.

Therefore, the oracle is a key part of the Synthetix puzzle. In short, blockchain oracles are the bridging connection between smart contracts and the real world—they are the bridges between TradFi and the platform, as well as between the real world and the synthetic assets created in the digital ecosystem. For example, if the price of silver rises or falls in the traditional market, the DeFi oracle will transmit this information to the Synthetix network—consequently, the price of sSilver will also fall to adapt to market fluctuations.

SNX coin

During the initial coin offering (ICO) of SNX, a total of $30 million was raised, and 100 million tokens were issued. At that time, SNX was known as Havven, but through a renaming, it was changed to Synthetix, and now its supply is limited—totaling 255 million coins.

Around March every year, the supply increases. In March last year, the total supply of SNX rose from 1.75 million to 2.12 billion, an increase of 21%. In March last year, that is, 2022, the SNX token reached 2.31 billion—an increase of 9% year-on-year. March 2024 will be the last increase in the network’s supply, ultimately reaching 2.55 billion.

In addition to its token economics, the SNX token has two very distinct functions: firstly, it is a mandatory token required to create Synths. To do this, SNX tokens must be collateralized at a ratio of 750%, or staked as a participatory asset on the platform to stabilize the value of Synths. Secondly, it is used as the governance mechanism for Synthetix DAO (Decentralized Autonomous Organization). As a governance token, SNX holders can vote on proposals for improvements to the project and participate in update proposals when necessary.

How to buy SNX

The token SNX of Synthetix can be purchased on Gate. Gate’s trading services include cash deposits, encryption deposits, credit card transactions, and P2P trading, among others.

You only need to create one on the Gate exchange. Gate Account Then go to the trading area and select Spot Trading You can make a purchase. After entering the spot trading page, search for Synthetix or SNX in the search box at the top left corner to view which trading pairs are available for trading—currently, the most popular trading pair is SNX/USDT.

If your account already has the appropriate funds for trading pairs, you can place an order immediately!

How to store SNX

Once you purchase assets on Gate, you can immediately enjoy premium asset management services, which you can access through the wallet menu in the upper right corner of the official homepage. Simply go to Funds Overview On the page, select the account for the assets you want to view.

How to stake SNX

Gate provides staking solutions for thousands of Crypto Assets, including staking SNX. If you want to stake Synthetix, please go to the top menu bar on the official website and click on the Gate Finance menu, then click on Wealth Management. Wealth Management Treasure After the page, click on the savings category to see which Synthetix solutions are currently available - the Gate platform may add new options for you to choose from at any time. At the same time, you can also browse and view any other investable assets on the platform at any time. Feel free to browse and see what investment options interest you!