Hello everyone this is the homework 10 that I am doing  steam Crypto Academy and today I will be talking about  ethereum blockchain and a really good project that you all should know about  and is this a that we have to say it in our own words so I won't be using any difficult or any e definitions for for technical world so I will try to to explain it as good as I can in my own words what this is and how it work the different features and everything I will try to explain so let's start I hope you will learn something from it

What is Synthetix

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 let's talk about synthetics  synthetics is basically a decentralized  payment network where users can transact  directly in a price stable  cryptocurrency  people will use stable coins to pay fees  to people who collateralize the network  compensating them  for the risk of providing collateral and  stability so the people who actually  control the money supply here are the  collateral providers the collateral  providers control the money supply  and fees are paid out based on how well  these collateral providers  stabilize the network so basically  synthetics rewards  providers who stabilize the network and  charges those who demand stability so it  rewards suppliers of stability and  charges those who demand for it so  synthetics actually has  two coins within the network one is the  synth and one is the  snx token which is the synthetics  network token  

synth

  now the synth is a stable  coin that has a floating supply the  price is measured in  fiat and is stable it has stability and  it is a superior medium of exchange  the synths track the prices of different  assets which could be exchanged for  example  there can be a susd or a synth us dollar  and a synth btc or sbtc  and they can be exchanged on the synth  exchange so this exchange  is automatic and it's always liquid and  since represents the assets so you  basically just trade on the price action  of the synth or the asset all this means  that you can always make the trade  because there is always liquidity now  how are these assets updated you know  how are we tracking the price of let's  say airbnb the stock if you have  since airbnb well the value of the  assets on this exchange on the synthetic  exchange is updated by oracles  that is they get the prices from feeds  from outside sources  and then they consolidate all these  outside sources data  and then it uses the aggregate price so  normally what we have is we  have the blockchain and assets in the  real world that don't really talk to  each other they don't talk to each other  they can't but synthetics has made it so  that we have these synths these assets  these synths  are representative of assets and these  outside sources outside data  but they didn't used to be able to talk  to each other but now with this  synthetics network they can so that is  the innovation here so in order to  power these oracles to get this data  synthetics actually have half of the  work being done by them and the other  half  being done by  chain link 

synthetics network token

all right now we're going to talk about  the synthetics network token so this  token provides the collateral for the  system and has a static supply so this  token gives the right for the holder to  issue sense whose value is proportional  to the token that is staked  so for an example if you have a dex  token worth  17 then you can issue since worth up to  17  now the snx is a decentralized asset and  the value of it really comes from the  fees  generated in the network it  collateralized god for the life of me i  cannot pronounce collateralized  collateralized so here's the thing there  will always be more  synths since stable coins than snx the  things that issue them now the system  really incentivizes snx holders  to issue and destroy synths based on  changing demand  so ultimately the value of snx affects  the synth supply so remember since snx  is not a physical asset  it doesn't need a trust or custodian you  don't need someone to guard it like  someone guards a block of gold or a safe  and a bank the value comes from supply  and demand which makes it really really  pretty much  transparent so the good thing is you  don't have a central figure like the  federal reserve  pumping supply when they want to  whenever they want to changing the value  of the asset  the value of the asset is changed by  supply and demand which is what it  should be so the snx must fulfill two  aims  one provide the system with collateral  two participate in stabilization of  synth price  and as long as there are more since than  snx the synths can be redeemed for their  price  for example one cents for one dollar  because snx is the collateral but for  that collateral for taking on that risk  snx holders are  paid to take on that risk buy the since  users whenever they transact via fees  so all the snx tokens are already  created there will only ever be  212 million 424 thousand  and 133 tokens now the since tokens  changes  and responds to issuance by snx tokens  for example with the us dollar the  system will  automatically always incentivize smx  holders to supply just enough synth to  keep that since price at one dollar  and vice versa when we have a snx holder  that sells out the respective amount of  synths are destroyed because the value  that came from that snx holder  must be destroyed to keep the system in  equilibrium so here is how the game is  played  the snx holder is awarded a fee and that  fee changes based on supply and demand  and the fee that is collected  is maximized when the since price is as  close as it can get to one dollar so  that's how it keeps it stable the snx  holders are incentivized  to keep that synth price as close to a  dollar as possible to collect the most  Fees  

what do i think about this project

  my thoughts on all this so the  since acts as a stable coin that tracks  an  asset like the us dollar or euro gold  etc but it does not suffer from  inflation because the supply and demand  of  synths is issued or destroyed by snx  holders which are really forced by the  system for example to keep the synths at  one dollar  in order to keep it stable enough for it  to be spent on real-world products and  services so it really takes out the  volatility but the value of sins will  always be because there is collateral i  think as the government prints more  money the value of snx will become more  expensive because it's both  a hedge of inflation like bitcoin and a  supplier of  synth to keep with the dollar how i  think of it is if we have an  snx which has issued synth us dollars  then  if we experience hyperinflation in the  u.s then that snx will be very very  expensive and when that happens i think  people can really leverage the network  to switch to other cryptocurrencies or  other stable coins to use  rather than synth us dollar   

THANK YOU SO MUCH

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