How Synthetix Works

There are two kinds of tokens in the Synthetix Network: SNX, the Synthetix network token; and Synths such as sUSD, the synthetic assets.
STEP ONE
Lock SNX as collateral
SNX holders lock their SNX as collateral to back Synths.
Step One
STEP TWO
Mint Synths
Synths are minted into the market, where they can be used for a variety of purposes including trading and remittance.
Step Two
STEP THREE
Receive rewards as SNX holder
Circulating Synths generate transaction fees that are distributed to SNX holders, rewarding them for providing on-chain synthetic assets.
Step Three