Synthetix – Buy an Index Funds Without a Central Entity
Synthetix – Buy an Index Funds Without a Central Entity

By Chesatochi | Chesatochi | 5 Apr 2020


I pay my attention and focus on a few programs that I discovered lately. Instead of paying attention to new programs that promise always the moon or the entire galaxy.

The choice is hard because I love to discover, test, and read about new projects. Unfortunately, it does not benefit the goal of what I want to accomplish.

One of those projects is Synthetix that I believe is an opportunity to generate an income from the DeFi niche.

What Synthetix does?

It is a project that I love and believe will have a bright future.

It is not worth jumping on every project, then looking for the next one without spending time to master it. –

Basically, you can invest in virtual assets without the need to purchase them yourself.

Instead, to buy them individually, and have enormous stress for the security on your shoulder. You can expose yourself to a variety of popular cryptoassets under the same ecosystem.

You can learn more about other articles I wrote about Synthetix:

A real DeFi use case

This project focuses on derivatives where they virtualize and track the price of the real assets. It is an innovative idea for the decentralize finance space.

Anyone can invest in gold or a DeFi index without the following elements:

  • Bank accounts.
  • KYC/AML requirement.
  • Cumbersome paperwork and process.

It is an important point, in the philosophy of crypto, to have access to a real decentralization system. In the current stage, we have a tendency of centralization and acquisition phase in this space.

My first DeFi index investment

This crypto index has the following DeFi assets:

  • Link
  • MKR
  • ZRX
  • REN
  • LRC
  • KNC
  • BNT
  • MLN

You only need to buy one asset to expose to all of them. This is very convenient for an investor, instead, to have to buy them individually on the market.

I was astonished when I discovered this one. It shows the potential of this technology and opens the opportunity for everyone to invest in many assets.

It is cool to invest in an index fund without a central entity. –

Synthetix exchange assets

When you buy and stake your SNX on the market, you mint the crypto sUSD, where you can trade it on the DEX (decentralized exchange).

You create a form of debt where you need a correlation to over 800% minimum.

The best part, a visual representation of the assets you have purchased. In the example below you see two assets:

  • sBTC
  • sDEFI

The future of index funds

Right now the ecosystem has two index funds where you can purchase and expose yourself. I believe this will bring more opportunities on this platform to create more index funds that replicate the real market.

Right now the unbanked has no excuse not to invest and create wealth for themselves. It is just the iceberg or what is coming and what this technology can offer around the world.


You need not use a boring centralized exchange to buy your assets. Every time you use them, you need to make 3 operations:

  • Send you crypto to the exchange.
  • Swap your tokens.
  • Then withdraw from the exchange.

The risky part is not your key, not your crypto.

With Synthetix, you trade with no intermediary and directly with your cold wallet. Everything controlled by smart contracts, the real essence of crypto.

Now you can buy things like an index fund or precious metal without a central entity, just WOW!

Go check the website of Synthetix to know more about this technology: link

Other cool articles that you might find interesting to read:–For the love of crypto and coffee.

PS: I am not a financial adviser, and this is only my opinion. Always do your own research before embracing investment in the crypto space.

Chesatochi - For the love of crypto and coffee

Chesatochi - For the love of crypto and coffee

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