@THORChain Synthetic feature is coming in a few days and will open the gate to THORfi.
Users will be able to Mint synth assets, swap between synth assets, and Redeem to the Native assets.
But, Wtf is THORChain Synth? 👇🧵
Users will be able to Mint synth assets, swap between synth assets, and Redeem to the Native assets.
But, Wtf is THORChain Synth? 👇🧵
1. THORChain synthetic assets are primitives for both higher-order financial features, as well as fully-secured, fully-backed synthetic assets that can be sent anywhere in the Cosmos IBC ecosystem and they will always retain the guarantee they can be redeemed for the underlying.
2. THORChain synths are unique in that they are 50% backed by their own asset, with the other 50% backing being provided by RUNE. This is achieved by using pool ownership to collaterise the synth, which ensures always-on liquidity and pricing.
3. What are the differences between other wrapped tokens and synthetics assets? (wBTC, Synthetix BTC, etc)
THORChain Synth has its unique design built on THORChain cross-chain liquidity.
- 100% collateralized by liquidity pool.
- No liquidation risk.
- Interest bearing.
THORChain Synth has its unique design built on THORChain cross-chain liquidity.
- 100% collateralized by liquidity pool.
- No liquidation risk.
- Interest bearing.
4. What are the incentives for the community?
- Arbitrageurs cannot compete without synth assets because of fast tx time (5s)
- Arbitrageurs can save huge gas fee (few cents)
- Earn yield from synth assets without being exposed by IL and liquidation risk
- IBC Composability
- Arbitrageurs cannot compete without synth assets because of fast tx time (5s)
- Arbitrageurs can save huge gas fee (few cents)
- Earn yield from synth assets without being exposed by IL and liquidation risk
- IBC Composability
5. What are the benefits for THORChain?
- Users are depositing the native asset to the pool in order to mint the synth asset. Technically, it's buying rune from half amount of asset.
- THORChain TVL grows up.
- Open the gate to many THORfi features
- Users are depositing the native asset to the pool in order to mint the synth asset. Technically, it's buying rune from half amount of asset.
- THORChain TVL grows up.
- Open the gate to many THORfi features
6. What are the benefits for Liquidity Providers?
- Earn fees from frequent trading by synth assets
- Earn fees from Synth mint and redeem tx
- Whenever synth assets are minted, liquidity grows up and incentivise traders with lower slippage and eventually lead to higher yields
- Earn fees from frequent trading by synth assets
- Earn fees from Synth mint and redeem tx
- Whenever synth assets are minted, liquidity grows up and incentivise traders with lower slippage and eventually lead to higher yields
7. What are the benefits for Node Operators?
- Earn more fees from any synth mint/redeem txns
- Earn more fees from frequent synth trading
- Any synth mint is buying rune from 50% of the amount
- Earn more fees from any synth mint/redeem txns
- Earn more fees from frequent synth trading
- Any synth mint is buying rune from 50% of the amount
8. What is the future roadmap for THORfi?
- Interest bearing feature will allow the single-sided staking to earn yields on the synth asset without IL.
- Lending and Borrowing
- Composite Assets
- Fixed stable yields on any asset
- IBC composability
(e)
- Interest bearing feature will allow the single-sided staking to earn yields on the synth asset without IL.
- Lending and Borrowing
- Composite Assets
- Fixed stable yields on any asset
- IBC composability
(e)
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