Synthetix is a DeFi, synthetic asset protocol on the Ethereum blockchain. Synthetic assets are similar to derivative products by giving investors exposure to an asset without having to own it. Examples of synthetic assets include cryptocurrencies like Bitcoin and Ethereum, fiat currencies like USD, and even gold and silver. Synthetix allows for traders to gain exposure to assets that are not on-chain and use decentralized price oracles to track the price of underlying assets. Synths are created by staking SNX token, which acts as collateral for Synthetix (ETH tokens are also part of Synthetix’s collateral).