Discover and read the best of Twitter Threads about #activethesynths
Most recents (1)
Synthetic assets are now available @THORChain. Why is this a big deal? Follow the 🧵
#DEFI $RUNE #SYNTHETICS #ActiveTheSynths
#DEFI $RUNE #SYNTHETICS #ActiveTheSynths
Let's start by defining what a synthetic asset is, and what makes it different than a wrapped asset.
A wrapped asset is collateralized by the asset its wrapping, while a synthetic is collateralized by one more assets (synthesizing an asset from multiple).
A wrapped asset is collateralized by the asset its wrapping, while a synthetic is collateralized by one more assets (synthesizing an asset from multiple).
Because wrapped assets have no correlation to the security of the network, they can and often exceed the value of the network securing it. THORChain's synthetics are collateralized by the pools, so 50% the asset, and 50% $RUNE.
