Side by side

Continuum vs Synthetix: Solana vs Ethereum Synthetics

One pools debt across every minter. The other pairs each position against its opposite.

Both protocols give you synthetic exposure without custody, and they get there by completely different routes. Synthetix pools debt across everyone who mints. Continuum pairs every position against its opposite. Here is what that difference costs and buys.

Continuum

Solana

Paired L/S Token Protocol

Transaction Speed
~400ms finalityexcellent
Transaction Cost
<$0.01excellent
Collateral Type
Stablecoins (USDC, USDT, USDv)good
Token Composability
Full SPL token standardexcellent
Liquidation Model
No liquidations on mintexcellent
Trading Venue
Protocol bin book, plus any Solana DEXexcellent
Funding Rates
None (shorts pay a volatility decay)good

Pros

  • Sub-second settlement, and fees you stop noticing
  • No funding rate, so the crowded side costs nothing to sit on
  • L/S tokens work anywhere on Solana that takes an SPL token
  • The mechanism fits in a paragraph: mint a pair, sell a leg

Cons

  • Solana only
  • Young, and has not been through a real crisis yet
  • Fewer markets listed than the incumbents

Synthetix

Ethereum / Optimism

Debt Pool Collateral Model

Transaction Speed
~2-15 secondsgood
Transaction Cost
$0.10-$5.00fair
Collateral Type
SNX, ETH, LUSDgood
Token Composability
Limited to Synthetix ecosystemfair
Liquidation Model
Collateral ratio basedfair
Trading Venue
Synthetix exchange primarilyfair
Funding Rates
Dynamic based on skewfair

Pros

  • Running since 2018, through several cycles
  • Wide asset selection
  • Real depth on the major synths
  • Woven into Ethereum DeFi

Cons

  • The debt pool means your liability moves with everyone else's positions
  • Mainnet gas is a real cost on small trades
  • Funding is a running cost on a held position

The verdict

Age is the honest difference here. Synthetix has survived several cycles and has the asset list and the depth to show for it, which counts for a lot when you are sizing up. Continuum is faster, cheaper, and its tokens go places Synthetix synths don't, but it has not been tested by a crisis yet. If you are already on Solana and want composable exposure, that trade is easy. If you want a protocol with scar tissue, it isn't.

Which one fits your case

Active day trading

Continuum

Sub-second settlement and negligible fees make frequent turnover viable

Long-term synthetic holding

Continuum

A long can sit indefinitely with no funding accruing against it

Complex DeFi strategies

Continuum

L/S tokens are plain SPL tokens, so any Solana protocol can take them

Ethereum ecosystem integration

Synthetix

Deep, existing integrations across Ethereum DeFi

Exotic asset exposure

Synthetix

A longer list of listed synths, forex and commodities included

Other comparisons

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