What Synthetix basically does is that it enables the creation of synthetics assets like sUSD or stocks like TESLA and allows people to trade using those synthetic assets on Ethereum, so in the near future people will be able to trade a synthetic Tesla stock that goes up and down the same exact way that a Tesla stock does without ever leaving the DeFi space and crypto. Basically all assets are backed by SNX, the token, which we have to stake to earn fees in the platform.
The system is very complex, and if a certain stock goes up, more SNX needs to be added to the platform so all synths assets are collateralized by more than 700%.
I like it and the synthetics market is a really big one, even bigger than the gold market, so if synthetix is able to capture a portion of that market and all synthetic assets are backed by SNX, we might see the price go exponential.
OFC, the whole system is experimental, might not work out, and governments might not like the system and try to shut it down, so it's a little gamble, they are still decentralizing some parts, like the oracles and other such things, but while many start out decentralized and become more centralized (Maker allowing USDC and USDT), some like Synthetix have the main goal of becoming as decentralized as they can, and they are doing this by creating DAOs and using ChainLink as oracle services.
Really like Aave and Rune, both solid pics, Rune still needs to launch though, but from what I've seen they keep building it and improving it and it's near launch.
Nice explanation on Synthetic from @teutonium here. It's an Aussie project that I've always watched, but never actually got involved in.
Definitely one to pay a bit more attention to.
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Thanks! I saw the creators speaking about a few days ago in the bankless podcast and the guy seems really honest and forward thinking
You might want to add a Glossar for real DAUs or as some say 'EIFOK' or as you might know it 'EIFOK'