How Synthetix Works

There are two kinds of tokens in the Synthetix Network: SNX, the Synthetix network token; and synthetic assets, known as Synths.

Intro

How nomins are minted

STEP ONE

Lock SNX as collateral

SNX holders lock their SNX as collateral to stake the system.

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 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.