Synthetix (SNX) – Compliance Profile – Synthetix (SNX)
🔑 Key Company Data
| Field | Details |
|---|---|
| Trading Name | Synthetix |
| Legal Entity | Synthetix Foundation (dissolved); operates as a DAO |
| Activities | Issuance and trading of synthetic assets (Synths) on Ethereum |
| Location | Decentralized; no specific jurisdiction |
| Regulations | Unregulated; operates as a decentralized protocol |
| Key People | Kain Warwick (Founder), SNX token holders via Spartan Council |
| Latest News | Transition to Synthetix V3 architecture |
| Latest Update | May 2025 |
| PCI DSS Level | Not applicable – no cardholder data processed |
📦 Offering Overview
Synthetix is a DeFi protocol that enables the creation and trading of synthetic assets, known as Synths, which track the value of real-world assets such as currencies, commodities, and indices. These Synths are backed by the SNX token, which users stake to mint new assets. The protocol offers a decentralized and permissionless trading experience without the need for traditional intermediaries.
⚖️ Regulatory & Legal
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Jurisdiction: Decentralized; no specific legal entity
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Licenses: None – operates without financial service licenses
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Regulatory Risk: High – due to the issuance of synthetic assets and lack of regulatory oversight
🔐 Security & Audit Profile
Synthetix has undergone multiple security audits by reputable firms, including iosiro and others. These audits have addressed various components of the protocol, identifying and resolving issues to enhance security. However, as with all DeFi protocols, inherent risks remain, and users should exercise caution.
👥 Team & Transparency
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Founders and Team: Kain Warwick (Founder); governance managed by the Spartan Council and SNX token holders
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Transparency: Moderate – active community governance but lacks formal disclosures
🌍 Reputation & User Experience
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Community Engagement: High – active participation in governance and development discussions
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Public Sentiment: Generally positive, recognized as a pioneer in the DeFi space
🧾 RatEx42 Risk & Trust Rating
| Category | Rating | Color | Notes |
|---|---|---|---|
| Legal Structure | Decentralized | 🟠 Orange | Operates as a DAO without a formal legal entity |
| Regulatory Status | Unlicensed | 🔴 Red | No financial service licenses; operates outside traditional frameworks |
| Compliance Risk | High | 🔴 Red | Due to the issuance of synthetic assets and lack of regulatory oversight |
| Audit & Security | Moderate | 🟡 Yellow | Multiple audits conducted; ongoing security improvements |
| PCI DSS Scope | Not applicable | ⚫ Black | No card data or custodial services |
| Online Reputation | Strong | 🟢 Green | Well-regarded in the DeFi community |
| Transparency | Moderate | 🟠 Orange | Active governance but lacks formal disclosures |
| Customer Support | Community-based | 🟠 Orange | Support primarily through community channels |
🔚 Final Conclusion
Synthetix stands as a significant player in the DeFi ecosystem, offering innovative solutions for synthetic asset creation and trading. While it boasts a strong community and has taken steps to enhance security, the lack of regulatory compliance and formal legal structure presents notable risks. Potential users and investors should conduct thorough due diligence and consider these factors when engaging with the protocol.
Final RatEx42 Rating: 🟠 6.5 / 10
Risk Color Code: 🟠 ORANGE – “Moderate Risk with Strong Community Support”
