Synthetix exchange: convenience at the cost of security
Sythetix Exchange is a sophisticated Ethereum smart contract that allows investors to gain exposure to financial instruments without having to own the underlying asset. The main currencies it supports are it’s own native stable coin (sUSD) and Ether. Instruments that are bought in Synthetix are called ‘synthetic assets.’
If you come from a financial background you may have heard the term synthetic asset before and be tempted to think of these assets as equivalent. However, it’s best to proceed with a clear slate due to the complex and often misleading way Synthetix Exchange operates.
Indeed, almost nothing in Synthetix Exchange is what it seems (and the white paper doesn’t do a very good job to clear this up.)
The stable coin
Throughout the Synthetix ‘Litepaper’ many references are made to a currency called ‘SNX’ [litepaper]. SNX is the main ERC-20 token used in Sythetix Exchange to...
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