How Synthetix Works

There are two kinds of tokens in the Synthetix Network: SNX, the Synthetix network token; and synthetic assets, known as Synths.
STEP ONE
Lock SNX as collateral
SNX holders lock their SNX as collateral to stake the system.
Step One
STEP TWO
Mint Synths
Synths are minted into the market against the value of the locked SNX, where they can be used for a variety of purposes including trading and remittance.
Step Two
STEP THREE
Receive rewards as SNX holder
All Synth trades on Synthetix.Exchange generate fees that are distributed to SNX holders, rewarding them for staking the system.
Step Three