Synthetify · About

Synthetify is an upcoming platform for synthetic assets, built entirely on the Solana blockchain. Its goal is to create a bridge connecting cryptocurrencies, stocks, fiat currencies, and other financial instruments directly through a decentralized exchange. Synthetify addresses major issues faced by other synthetic asset platforms, such as high fees, lengthy confirmation times, and losses from arbitrage during rapid market movements. The platform will introduce its own token, serving as collateral for synthetic assets, reducing fees on Synthetify, and providing voting power for governance decisions. The Synthetify protocol allows for the creation, exchange, and burning of synthetic assets based on prices sourced from a decentralized oracle system. On Synthetify, trading is conducted against a public debt pool that offers nearly unlimited liquidity and zero slippage, even during large trades. Participants in the debt pool earn proportional exchange fees for acting as counterparties. To maintain stability, debt pool members must continuously hold sufficient collateral in Synthetify tokens (SNY). Synthetic assets created on Synthetify will precisely track the prices of underlying assets provided by decentralized oracles. All synthetic assets are SPL tokens, functioning like other Solana-based tokens, which enables easy integration with platforms like AMMs. Participants can burn synthetic assets to improve collateralization ratios or free up collateral. Users who lock SNY tokens and mint synthetic assets, thereby incurring exchange debt, are called Stakers. Stakers benefit from trading fees generated on Synthetify and must maintain a collateral ratio to avoid liquidation. The collateral's value depends on the SNY token price, and debt is calculated proportionally. Traders can swap between different synthetic assets without needing SNY tokens; however, holding SNY reduces swap fees. Only synthetic asset swaps are permitted, based on current oracle prices, with some assets having limited mintable supplies. To ensure platform stability, undercollateralized Stakers may be liquidated, with part of their collateral transferred to Liquidators in exchange for repayment of their debt. Liquidation involves a penalty of 80%, transferred to Liquidators, and 20% allocated to an exchange-owned account to improve system stability.