Synthetix: Re-evaluating an OG DeFi Protocol

Key Insights

• Synthetix daily volumes have gone up 700% since adding multiple improvements to the protocol enabling the integration of Synthetix atomic swaps with 1inch in June 2022.
• Further improvements are coming to Synthetix in the next few months that will lower fees, increase the number of markets offered, add further DEX integrations, improve user experience, and potentially drive increased volumes.
• Despite a recent price run-up, our analysis and price model find SNX to be undervalued for the current level of revenue and future growth trajectory of the protocol.

Synthetix is a derivatives protocol that allows users to mint tradable synthetic representations of any crypto or traditional asset with a reliable price feed. This protocol is one of the first in the DeFi space, coming on the scene way back in 2018. Despite being one of the first on the scene, Synthetix has been surpassed by many other DeFi projects in terms of user adoption, volumes, and revenues.

Synthetix has recently undergone several key upgrades, including integration of atomic swaps with 1inch, which have increased revenues ~700%. With many more upgrades on the way that can help further increase volume, it's time we re-evaluate this OG.

How does Synthetix work?