# Synthetix By [mastercrypto](https://paragraph.com/@masterbrum.robots.farm) ยท 2023-01-28 --- Synthetix is a decentralized finance (DeFi) platform built on the Ethereum blockchain that allows users to trade synthetic assets, or assets that are backed by a collateral but do not have a direct relationship with the underlying asset. The platform is designed to create a wide range of synthetic assets that can be traded on a decentralized exchange (DEX). These synthetic assets can be used to represent a variety of underlying assets, such as stocks, commodities, and even other cryptocurrencies. One of the main advantages of Synthetix is that it allows users to trade assets that they would not normally be able to access. For example, a user in a country that has strict capital controls may not be able to invest in a foreign stock, but they can invest in a synthetic version of that stock using Synthetix. Additionally, users can trade synthetic assets 24/7, without the need for intermediaries or market closures. The platform is also designed to be highly customizable, allowing users to create their own synthetic assets, or "synths", based on their specific needs. The platform uses a unique issuance mechanism called "minting" which allows users to create new synthetic assets by depositing collateral into the system. The collateral is then used to back the value of the new synthetic asset, allowing it to be traded on the DEX. Synthetix also utilizes a governance model where holders of the platform's native token, SNX, can vote on changes to the protocol, including the addition of new synthetic assets. This allows for a decentralized and community-driven approach to decision making. However, as with any new technology, there are also risks associated with using Synthetix. The platform is still relatively new and untested, and the value of synthetic assets is highly dependent on the value of the underlying collateral. Additionally, the platform is built on Ethereum, so any issues with the Ethereum blockchain could also affect Synthetix. Overall, Synthetix is an innovative platform that has the potential to revolutionize the way we trade and access different assets. However, it is important for users to thoroughly research and understand the risks before investing. --- *Originally published on [mastercrypto](https://paragraph.com/@masterbrum.robots.farm/synthetix)*