Synthetix
AuditedVerifiedRisk AlertSynthetix is a derivatives liquidity protocol on Ethereum that powers on-chain perpetual futures. It pioneered the shared-debt-pool synthetic asset model in 2018, but governance retired its SNX-collateralized sUSD synthetic dollar via SIP-423 in June 2026 after a 16-month depeg, and the protocol is now consolidating on Ethereum Mainnet as a perps venue.
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The Problem
Traditional derivatives and synthetic asset exposure require centralized intermediaries (CEXes, brokers) and custodial counterparties; previous on-chain attempts either rely on collateralized debt positions (capital-inefficient) or fragmented order books (illiquid).
The Solution
Synthetix's shared-debt-pool model lets SNX stakers collectively collateralize all synthetic positions, providing infinite liquidity for traders against pooled capital, with Perps V3 adding sub-100ms execution via off-chain orderbook matching.
Why it Matters
Original category definer for on-chain synthetic assets (2018), with 7+ year track record, robust governance (Spartan Council + Treasury Council + Risk Council), and the only Ethereum Mainnet-native perps venue with multi-collateral margin support.
Protocol Metrics
Related Research
View allFrequently asked questions about Synthetix
What is Synthetix?+
Synthetix is a Stablecoin protocol operating on Ethereum, Optimism, Base, Arbitrum. Synthetix is a derivatives liquidity protocol on Ethereum that powers on-chain perpetual futures. It pioneered the shared-debt-pool synthetic asset model in 2018, but governance retired its SNX-collateralized sUSD synthetic dollar via SIP-423 in June 2026 after a 16-month depeg, and the protocol is now consolidating on Ethereum Mainnet as a perps venue.
How does Synthetix work?+
Synthetix's shared-debt-pool model lets SNX stakers collectively collateralize all synthetic positions, providing infinite liquidity for traders against pooled capital, with Perps V3 adding sub-100ms execution via off-chain orderbook matching.
Is Synthetix safe?+
DeFi Sentinel rates Synthetix BB with a safety score of 61/100, indicating elevated risk. The score reflects five risk dimensions: smart contract & technical risk, economic design & market risk, governance & centralization, sustainability & competitive position, and reputation & social trust. Synthetix has 7 audits on record. DeFi Sentinel's analysis flagged 5 high, 6 medium, 2 low risk alerts across Smart Contract & Technical Risk, Economic Design & Market Risk, Governance & Centralization, Sustainability & Competitive Position and Reputation & Social Trust. As with all DeFi protocols, residual risk remains and users should review the full risk breakdown before depositing.
What is the safety score of Synthetix?+
Synthetix has a DeFi Sentinel safety score of 61/100 (rating BB), last updated July 19, 2026. The score is computed across smart contract & technical risk (30%), economic design & market risk (25%), governance & centralization (20%), sustainability & competitive position (15%), and reputation & social trust (10%).
Which chains does Synthetix support?+
Synthetix is deployed on Ethereum, Optimism, Base, Arbitrum.
Has Synthetix been audited?+
Yes. Synthetix has 7 audit reports on record from firms including Sigma Prime, Iosiro, OpenZeppelin. Audit reports and dates are linked under the Resources tab on this page.