DeFi on TokenPocket | How to issue and trade Synthetic Assets with Synthetix

Synthetix is a synthetic asset (Synths) issuance protocol based on Synthetix. To understand what Synthetix is, we need to know what Synths are first.

What are Synths?

Synths are digital or tokenized representations of a certain asset (e.g. Tesla stock). They can be used to keep track of the price of virtual tokens that are basically traditional assets that investors are already familiar with. You can create a Synth based on the stock module of Tesla. Apart from stock, it could be fiat money, gold, BTC, etc.

Where do needs for Synths come from?

The needs for Synths mainly come from trading. The aim is to gain the risk exposure of a certain asset by simulating it on-chain, and to access the opportunities of making returns.

How to issue a Synth?

You need to collateralize SNX to generate sUSD first, and then buy Synths with sUSD.

1. Collateralizing SNX to generate sUSD

Note: TP Mobile has not supported this page yet, so the tutorial is about how to use the website on PC with the assistance of mobile.

2. Login with WalletConnect

Open TP wallet on you mobile and tap on [scan] to scan the QR code. you can choose another wallet on the next page and then grant authority.

3. Minting process (Collateralizing SNX to generate sUSD)

  • After connection, the bottom of the page will show the balance of the tokens in the wallet, including SNX and ETH, as well as the amount of the Synths and debt in the wallet.
  • Enter the amount of sUSD you want to mint and click on MINT NOW. After the transaction confirmation, the minting of sUSD and SNX collateralization will be complete.

4. Buy Synths with sUSD

To issue a Synth on Synthetix is actually to purchase the Synth with sUSD.

5. Synths trading

The essence of trading Synths on Synthetix is the process of burning the original Synths and generating new Synths.

Crypto&DeFi Wallet on BTC, ETH, BSC, HECO, TRON, Polkadot, Kusama, Klaytn, HSC, EOS, etc. APP download link: https://www.tokenpocket.pro/