DeFi project Synthetix raises $3.8 million

Posted 29 October, 2019

Synthetix, a decentralized finance (DeFi) project built on the Ethereum blockchain, has raised around $3.8 million in new funding. According to the announcement made on October 28, 2019, Synthetix revealed that Framework Ventures has backed its operations by purchasing 5 million Synth (SNX) tokens. Several other large companies that chose to remain anonymous also participated in the round of financing.

Synthetix, which provides access to synthetic forms of fiat currencies, cryptocurrencies, and commodities. One SNX token is currently priced at around $0.76.

According to Michael Anderson, the co-founder of Framework Ventures, Synthetix has an infinite liquidity model that gives it a huge advantage over its competitors.

“Synthetic assets are a financial primitive that enables inclusion and innovation beyond traditional financial markets, and will likely present the next leg up in DeFi.” -  Anderson said.

Also, analyst Matteo Leibowitz, published a detailed report on Synthetix, saying that despite the project’s increasing popularity, the mechanisms used to guarantee the value of minted synthetic products are largely deficient, exposing SNX token holders to significant risk.

“If Synthetix is to succeed in the coming years, the integration of a liquidation process, more liquid collateral types, and some kind of monetary policy tools are a must.” - Leibowitz said at the time.

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