Thread by @flyacro

I received a few DMs with questions about the key differences between @Thorchain synths vs @synthetix_io vs or @mirror_protocol. While I am not an expert on the subject, I would like to point out ONE key difference that is obvious to my naked eye:

CAPITAL EFFICIENCY

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Let's start with @synthetix_io:

1. @synthetix_io is a protocol built on #Ethereum network and it is managed by a smart contract

2. The synths are collateralized by SNX token with 600% ratio (previously 750%)

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Let's have a look at @mirror_protocol:

1. Mir is built on Terra blockchain and is managed by a smart contract

2. The synths are collateralized by UST (A USD pegged stable coin) with 150% collateralization ratio or other mAssets with 200% ratio

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@Thorchain does not use smart contracts and the synths are directly integrated into the blockchain. That makes them very powerful financial primitives and synths form foundation for #ThorFi.

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@Thorchain synths are backed by a pool of 50/50 $RUNE and underlying asset. Because of that, the collateralization ratio is 100% and you will never get liquidated.

That is not true for either Synthetix or Mir where there is a non-zero chance you may get liquidated.

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The capital efficiency is a big deal, especially that synths are earning yield. When you lock your @THORChain synths in a synthetic pool to provide liquidity it makes a huge difference if 16.6% to 66% of your capital is working vs 100% ... only at @THORChain

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To learn more follow @BrokkrFinance, as they navigate the deep waters of @THORChain synthetic assets.

/fin