How does synthetix work?

Could you please explain in detail how Synthetix operates? I'm quite interested in understanding the mechanics behind its functionality. Could you break down the key components and processes involved in Synthetix's operation? How does it generate synthetic assets and what role does collateral play in this process? Additionally, could you also elaborate on the role of Synthetix's token, SNX, and how it fits into the overall ecosystem? I'm keen to learn more about its utility and the incentives it provides to users. Thank you for your assistance in clarifying these aspects of Synthetix.