Synthetix is a protocol that allows trading and issuing synthetic assets(synths) based on Ethereum. Synthetic assets created are used to track external assets such as sUSD token is used to track the price of the US Dollar. With clear price of an asset, this system can support any asset and provide an on-chain exposure to unlimited range of real-world assets. To maintain the synth prices, Synthetix is composed of smart contract architectures and a set of incentives. The Synthetix Network Token(SNX) is used as a collateral when minting new synths. To mint new synths, SNX will be staked with a proportional value to the synthetic assets. If a staker wants to exit staking, the staker will need to burn the minted synths.