List of Synthetix Derivative Tokens Published by ITSA

What is Synthetix?

Synthetix is a DeFi application on top of the Ethereum blockchain for the issuance of synthetic assets with a total value locked of around 1B$. Analogous to derivatives in traditional finance, synthetic assets are financial instruments in the form of ERC-20 smart contracts that provide the returns of another asset without requiring you to actually hold it. Synthetix’s native token, the Synthetix Network Token (SNX), is used to provide collateral against the derivative tokens that are issued.

Figure 1: Total value locked in DeFi derivative networks (Source: https://defipulse.com/)

Synthetix tokens list added to Tokenbase

Currently, layer 2 platforms are the most significant growth factor in DeFi. Layer 2 platforms use various technologies such as plasma, sidechains or rollups to process transactions off the Ethereum main chain. They periodically update data about the state of smart contracts and accounts, handling far greater throughput than Ethereum. Layer 2 platforms alleviate traffic on the Ethereum network, with the added bonus of significantly lower fees. With the surge of layer 2 solutions, the number of token addresses is likely to see exponential growth. Our last week’s article about USDC showcased why it is important to identify tokens on a token layer instead of an asset layer, as each of those USDC tokens runs on a different blockchain. The same will be the case for Synthetix on Optimism, which plans to initially support synthetic ether (sETH), synthetic bitcoin (sBTC), and synthetic link (sLINK). Again, each of those tokens will be indistinguishable in value compared to their counterparts running on the Ethereum mainnet, but each of them will feature an individual token address creating the need for additional identifiers. The Synthetix Tokenbase list, as seen in figure 2, will be updated once Synthetix has started offering its services on Optimism. Synthetix, just like USDC, proves that identifiers such as the ITIN will be a necessity for future digital assets, especially as interchain operability and the integration of layer 2 solutions progresses.

Figure 2: Tokenbase list with all Synthetix derivative tokens (Source: https://bit.ly/3rnfzE5)

The classification of Synthetix (SNX) according to the ITC:

Figure 3: The Synthetix Tokenbase entry (Source: https://itin.itsa.global/X1CQCP3J7)

The International Token Standardization Association (ITSA) e.V.

The International Token Standardization Association (ITSA) e.V. is a not-for-profit association of German law that aims at promoting the development and implementation of comprehensive market standards for the identification, classification, and analysis of DLT- and blockchain-based cryptographic tokens. As an independent industry membership body, ITSA unites over 100 international associated founding members from various interest groups. In order to increase transparency and safety on global token markets, ITSA currently develops and implements the International Token Identification Number (ITIN) as a market standard for the identification of cryptographic tokens, the International Token Classification (ITC) as a standard framework for the classification of cryptographic tokens according to their inherent characteristics. ITSA then adds the identified and classified token to the world’s largest register for tokens in our Tokenbase.

  • The International Token Identification Number (ITIN) is a 9-digit alphanumeric technical identifier for both fungible and non-fungible DLT-based tokens. Thanks to its underlying Uniform Token Locator (UTL), ITIN presents a unique and fork-resilient identification of tokens. The ITIN also allows for the connecting and matching of other media and data to the token, such as legal contracts or price data, and increases safety and operational transparency when handling these tokens.
  • The International Token Classification (ITC) is a multi-dimensional, expandable framework for the classification of tokens. Current dimensions include technological, economic, legal, and regulatory dimensions with multiple sub-dimensions. By mid-2021, there will be at least two new dimensions added, including a tax dimension. So far, our classification framework has been applied to 99% of the token market according to market capitalization of classified tokens.
  • ITSA’s Tokenbase currently holds data on over 4000 tokens. Tokenbase is a holistic database for the analysis of tokens and combines our identification and classification data with market and blockchain data from external providers. Third-party data of several partners is already integrated, and API access is also in development.

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International Token Standardization Association

International Token Standardization Association

The International Token Standardization Association (ITSA) is a not for profit organization working on holistic market standards for the global token economy.