List of Synthetix Derivative Tokens Published by ITSA

Berlin, July 20, 2021 — The International Token Standardization Association released a list with all existing Synthetix (SNX) derivative tokens in the Tokenbase. Most of these tokens offer investment opportunities in popular commodities and stocks such as Petroleum or Tesla without the need of a central clearing unit. All transactions are recorded on the Ethereum blockchain. For now, the list contains 67 different tokens which range from cryptocurrencies to indexes, inverses, and real-world assets like gold. Sythetix was created on the Ethereum network under the ERC-20 standard and soon became one of the most popular DeFi applications. As of today, Synthetix’s total value locked (TVL) has reached almost 1B$, making it the most popular DeFi derivative platform according to Defi Pulse.

Authors: Christian Viehof, Maximilan Bruckner

What is Synthetix?

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

For the pricing of their derivative tokens, Synthetix uses decentralized oracles which serve as bridges between the Synthetix network and the outside world for pricing information. Oracles like Chainlink (LINK) track the prices of the assets represented, allowing users to buy and sell Synthetix derivative tokens as if they actually own the underlying assets. In this manner, Synthetix derivative tokens provide exposure to assets normally inaccessible to the average crypto investor. Examples are crude oil or the NIKKEI Index. Since Synthetix derivative tokens are issued on Ethereum, you can deposit them on decentralized exchanges (DEXs) such as Curve and Uniswap and use them to provide liquidity and earn interest. Synthetix has recently announced that it will be implementing the layer 2 solution Optimism on its platform in order to reduce transaction costs and to make the platform more accessible to retail investors.

Synthetix tokens list added to Tokenbase

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)

Economic Purpose (EEP): Synthetix is listed as a Settlement and Governance Token (EEP22TU03) due to its design as a means of collateral combined with governance functionality.

Industry Type (EIN): The issuer of Synthetix is active in the field of Decentralized Derivatives, Synthetic Assets and Insurance (EIN06DF03).

Technological Setup (TTS): Synthetix runs under the Ethereum ERC-20 Standard (TTS42ET01) as an application layer token on top of the Ethereum blockchain.

Legal Clam (LLC): Synthetix does not entitle its holder to any legal claim or rights against the issuing organization, therefore it is listed as a No-Claim Token (LLC31).

Issuer Type (LIT): The dimension “Issuer Type” provides information on the nature of the issuer of the token. Synthetix’s platform is built by a team of programmers and engineers that make up the core contributor community. It’s Issuer Type is a Private Sector Legal Entity (LIT61PV).

Regulatory Framework (EU) (REU): The dimension “Regulatory Status EU” provides information of the potential classification of a token according to the European Commission’s proposal for a Regulation on Markets in Crypto Assets (MiCA, Regulation Proposal COM/2020/593 final). Synthetix qualifies as an Utility Token (REU52) according to the definition provided in Article 3 (5) of Regulation Proposal COM/2020/593 final.

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

  • 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.

Remarks

Christian Viehof is an Executive Director at the International Token Standardization Association (ITSA) e.V., working to create the world’s largest token database including a classification framework and unique token identifiers and locators. He completed his Bachelor in Economics at the University of Bonn, the Hong Kong University and the London School of Economics and Political Science with a focus on Behavioral Economics and Finance. Currently pursuing his Master of Finance at the Frankfurt School of Finance and Management, you can contact him via christian.viehof@itsa.global and connect with him on Linkedin, if you would like to further discuss ITSA e.V. or have any open questions.

Maximilian Bruckner is Executive Director at the International Token Standardization Association (ITSA) e.V., working to create the world’s largest token database including a classification framework and unique token identifiers and locators. He has a strong international background with significant time spent in Spain, South Africa, and Canada. Currently pursuing studies at the Frankfurt School of Finance and Management, you can contact him via maximilian.bruckner@itsa.global and connect on LinkedIn if you would like to further discuss ITSA e.V. or have any other open questions.

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