Synthetify’s new solution for managing your assets

3 min readMay 29, 2021

Here at Synthetify we’re creating a new platform that will help to manage your synthetic assets. Synthetify protocol enables creation, exchange and burn of synthetic assets based on prices provided by a decentralized system of oracles. On Synthetify exchange trading is executed against the public debt pool that allows for almost infinite liquidity and zero slippage even during big trades.

Minting synthetic assets

Synthetify protocol is a Solana blockchain based platform that enables creation and burn of synthetic assets by participating in a debt pool. All that can be done by becoming a Staker and locking one’s collateral SNY tokens inside a smart contract and using it to create synthetic USD (xUSD) that can be later exchanged for other types of synthetic assets listed on the Synthetify exchange. To unlock SNY tokens Stakers need to burn their synthetic tokens equal to the value of their debt. Collateral is dependent on the price of SNY token and debt is calculated based on Staker’s share of debt of the entire platform. Prices of all synthetic assets are provided by decentralized oracles build on top of Solana blockchain. Only synthetic USD (xUSD) has a static predefined value that is 1 USD.

Synthetic assets exchange

Synthetify exchange allows users to engage in trading activity without the need of a direct counterparty. The platform allows users to exchange synthetic assets listed on the platform even for users who do not hold collateral token. The Exchange has a static and low fee — currently 0.3% which stays the same no matter the size of the trade. In the trades it’s the SNY Stakers that act as counterparty and in exchange for that they receive a share of fees generated by the platform.

How does it work?

The stability of the platform is ensured by introducing a collateral token — SNY. It holds three basic utilities:

· Collateral for creation of synthetic assets on Synthetify.

· Discount for performing swaps on Synthetify, by entitling SNY holders to a share of Exchange fees.

· In the future SNY will represent vote in governance decisions such as to adjust protocol parameters or list new assets.

What’s next?

We’re just getting started! Our alpha version won 2nd place on the Solana x Serum DeFi Hackathon in March, 2021. Right now it can be seen and tested on synthetify.io. Soon we will launch beta version of our platform on testnet.