What is a synthetic asset?A synthetic asset is an asset or mixture of assets that has/have the same value or effect as another asset. Within the Synthetix network, synthetic assets (Synths) track the value of underlying assets and allow exposure to an asset (e.g. gold) without the requirement of actually holding it.
Does it cost anything to make a trade?Apart from ETH as gas, there is a fee for all Synth exchanges. It is currently 0.30%. These exchange fees are distributed to SNX holders, who are providing collateral as backing for all Synths.
Do I need to hold SNX to use Synthetix.Exchange?No, you only require ETH and Synths.
What happens if the price changes just as I make a transaction?The prices you see at Synthetix.Exchange are the prices at that time. when you make a transaction the new price feed is provided by our Oracle and the amount you get might be slightly different.
Is there a price or transaction limit?No. Since there is no counter party at Synthetix.Exchange, you are only limited by your wallet balance.
What do I need to use Synthetix.Exchange?You’ll need a compatible ERC20 wallet (currently MetaMask, Ledger and Trezor wallets). Secondly, this wallet must contain ETH for gas. Thirdly, for you to make a trade your wallet must be holding at least 0.01 of a Synth. If it doesn’t hold Synths, you can purchase sUSD through Synthetix.Exchange with ETH.
When I trade from one Synth into another, where are these tokens coming from?There is no counterparty in Synthetix.Exchange, which means that you essentially convert one Synth into another, with the values of each Synth in a trade being taken from exchange rates at the time of the transaction.
Where does Synthetix Exchange get the prices from?Synthetix.Exchange uses a private oracle that pulls feeds from multiple credible financial market resources. We are currently looking into options for decentralised oracles.
How often are prices updated?The oracle updates prices every 3 minutes.