Synthetix is a derivatives liquidity protocol launched on Ethereum in 2018 to enable the issuance and trading of synthetic assets. Each synthetic asset (or Synth) is an ERC20 token which tracks the price of an external asset — for example, each sUSD token tracks the price of the US dollar. A wide variety of Synths exists within Synthetix, including fiat currencies, cryptocurrencies, commodities, and inverse indexes. In principle the system can provide on-chain exposure to an unlimited range of real-world assets. Synths are collateralized by the Synthetix Network Token (SNX) which gets staked in a smart contract and entitles stakers to receive fees generated by Synth trading volume.