THORChain synthetics are synthetic twins of the Layer 1 cryptocurrencies. They are derivatives that keep the same price and value as the underlying asset.
THORChain Stagenet is a test environment where real funds are used.
Users (testers) can mint, swap, and redeem Synth assets on stagenet.
Other things to consider:
The pools are shallow and unbalanced
High slippage
Probably better not to hold sRUNE for longer than needed
What's expected after THOR Synth is activated fully
Arbitrageurs can't compete without synth trading which takes 5s tx time and <$1 fee, therefore more synth is minted.
Synth assets are minted by providing assets to the liquidity by making the pool even deeper, which leads to lower slippage that encourages trading frequency
Frequency trading encouraged by low slippage will drive the trading volume and it will drive the higher APY for all LPs and Node Operators. Therefore, Synth incentivises LPs and Node Operators.
More RUNE will be acquired to bond nodes, more bonds will increase the liquidity cap. More LPs will come to earn high yields and RUNE TVL will increase over time.
As @THORChain TVL grows, the Game theory on Liquidity blackhole and RUNE deterministic price will finally prove it's no longer a meme but actually works.