Synbit Synthetic Assets Protocol — Next Stop of Block Chain

Synbit Protocol
3 min readNov 5, 2020


It is undeniable that the block chain industry has been in the exploratory stage. Although numerous thoughts contend on the aspect of protocol, the “TCP / IP” of block chain has not been formed yet. The boom of DeFi seems to have injected a shot in the arm for the industry. The Synbit team has been deeply involved in the exploration of the block chain industry for a long time. Although some ideas are only a flash in the pan, they are of great exploration significance for the industry. After being verified for a long time, some ideas have become an important part of the current value Internet. We focus on the field of DeFi this time, and believe that it may become the technical cornerstone of the future block chain world.

At present, in the field of DeFi, crypto lending and decentralized exchange (DEX) block chain finance have been applied. What’s more, there are also innovative projects in application layer such as flexible stable coins and synthetic assets protocol. Synbit is just one of them.

Synbit is a decentralized synthetic asset issuance protocol running on Ethereum, which provides traders with a wide range of digital assets and traditional financial derivative transactions, and is committed to creating a safer, more convenient and efficient synthetic asset trading platform for users. Synthetic assets can meet the need for people to transact specific assets without holding them. With the help of the reliable and censorship-free smart contracts, synthetic assets expand the primary scope of traditional financial assets and provide an opportunity for anyone to trade any kind of financial assets easily.

To facilitate understanding, Compared with Synthetix (SNX), another kind of synthetic assets protocol, Synbit is more complete in project planning and is conducive to attracting users.

Firstly, as to mortgage assets, Synthetix only supports SNX, while Synbit supports ETH/DAI/USDT/USDC/SYN and other assets. At present, there are four kinds of Synths available: Legal tender, bulk commodities, cryptocurrency and reverse cryptocurrency, which can provide users with more transactions about extensive digital assets and traditional financial derivatives.

Secondly, in terms of product experience, Synbit’s interactivity and usability are more in line with users’ habits than Synthetix. For instance, the most important part of Synbit is that it has a liquidation mechanism, which can effectively reduce the investment risk of users and create a more secure/convenient/ efficient synthetic asset trading platform for users.

Advantages of Synbit synthetic asset trading platform

Natural features as DeFi products:

Characteristics as synthetic asset product:
① Increase trading categories
② Decrease trade frictions
③ Eliminate trading slippage
④ Deepen trading depth

Characteristics as innovative products:
① More flexible mortgage pattern (ETH/DAI/platform coins)
② Safer and more stable platform (liquidation system/security fund/insurance)
③ More equal token issuance (no pre-mining/trading mining/coin holding mining)
④ Better user experience (low rate/low Gas fee/short trading path/real-time price)

On Synbit, users can issue synthetic assets or directly exchange them with other types of synthetic assets by purchasing synthetic assets. In order to attract users to participate in the Synbit ecosystem and ensure the smooth online and sustainable development of the Synbit platform, the platform has formulated targeted incentive plans for ecological participants such as mortgagors, traders and coin holders. Users will (1) gain revenue from transactions and (2) provide liquidity to the platform to maximize revenue.

For the future of crypto finance, Synbit believes it lies in in terms of derivatives. The outbreak and prosperity of DeFi seems to make the discourse power of decentralized platform more and more powerful. How to make good use of “The Composability of DeFi” will be an important topic for the block chain industry in the future. Synbit has taken an important and thrilling step, and the next step is to further release the energy of new finance and withstand the test brought by the market. At the same time, we also expect to bring more changes and surprises to the future crypto financial market.