Synthetify is a synthetic assets platform in development that is built entirely on the Solana blockchain.

Its goal is to connect cryptocurrencies, stocks, fiat currencies, and other financial instruments through a single decentralized exchange.

Synthetify addresses key issues that have appeared in other synthetic assets platforms, including high fees, slow settlement times, and losses caused by arbitrage during sudden market swings.

Synthetify will bring its own token, intended to serve as collateral for synthetic assets, lower fees on Synthetify, and provide voting power for governance decisions.

The Synthetify protocol supports the creation, trading, and burning of synthetic assets using pricing data supplied by a decentralized oracle network.

Trading on Synthetify is conducted against the public debt pool, designed to deliver nearly limitless liquidity and zero slippage for large orders. Debt pool participants earn exchange fees on a pro-rata basis by acting as counterparties. These debt pool participants must continually hold enough collateral in Synthetify tokens (SNY) to keep the system stable.

Synthetic Assets

Synthetic assets issued on the Synthetify exchange will track the underlying asset price as determined by decentralized oracles. All synthetic assets are SPL-token based and function like other Solana tokens. This supports broader use on platforms such as AMMs with minimal integration friction. Debt pool participants must burn synthetic assets to enhance their collateralization ratio or to unlock collateral.

Staking

Users who lock their SNY tokens and mint synthetic assets while taking on exchange debt are referred to as Stakers. Stakers can benefit from trading activity on Synthetify Exchange by receiving pro-rata exchange fees from every transaction. Stakers must maintain an adequate collateral ratio, or a portion of their collateral may be liquidated to preserve network safety. Their collateral value depends on the SNY token price, and their debt is determined by their share of the platform’s total debt.

Trading

Traders use Synthetify to move between different synthetic assets. They do not need to hold SNY tokens to execute trades, but keeping SNY can reduce swap fees. Synthetify supports only swaps between synthetic assets, priced according to current oracle data. Certain assets may have a capped supply that can be minted.

Liquidation

Undercollateralized Stakers may be liquidated to maintain platform stability, with part of their collateral sent to Liquidators after Liquidators repay part of the Staker’s debt. Liquidations carry an 80% penalty paid to Liquidators and 20% routed to an Exchange-owned account to strengthen platform stability.