How does the Synthetix platform use smart contracts?

The Synthetix platform uses smart contracts to facilitate the issuance, trading, and settlement of synthetic assets.

Synthetic assets are digital tokens that represent real-world assets such as stocks, commodities, and currencies. Smart contracts are used to create and manage these synthetic assets on the Synthetix platform. Smart contracts are also used to enable users to trade these synthetic assets on the Synthetix Exchange.

The exchange is powered by a decentralized order book which is managed by a series of smart contracts. These smart contracts allow users to place orders for synthetic assets and execute trades in a secure and trustless manner. In addition, smart contracts are used to facilitate the settlement of trades on the Synthetix Exchange.

When a trade is executed, the corresponding smart contract will automatically transfer ownership of the synthetic asset from one user to another. This ensures that all trades are settled quickly and securely without any manual intervention or third-party involvement. Finally, smart contracts are also used to manage the Synthetix Network Token (SNX).

SNX is an ERC-20 token that is used as collateral for issuing new synthetic assets on the platform. Smart contracts are used to track SNX balances and ensure that users have sufficient collateral before they can issue new synthetic assets.