Synths

DeFi translation of real-world assets.

What are synthetic assets in DeFi?

Buying Telsa stock from non-US countries may seem daunting, but DeFi synthetic asset is groundbreaking in its ability to unlock value from almost any asset imaginable, creating unlimited, uncensored, and instant access for retail investors to participate in global markets.

Synthetic assets (synths) are blockchain-based cryptocurrency derivatives that mimic the value of underlying assets. Traders do not need to have the real asset in their possession, however, they can still gain exposure to its price movements.

Why DeFi synthetic assets?

Synthetic assets provide a window of opportunity for investors looking to diversify their portfolio with ease within the crypto ecosystem, with many advantages over underlying assets and traditional derivatives:

  • Easy access: provide exposure to assets normally inaccessible to the average investors, enabling anyone with internet access to participate.

  • Worldwide liquidity: crypto are global by default, freely transferable and 7/24 tradeable through DEX, enabling far more liquidity than traditional derivatives.

  • Frictionless movement: easy switch between different asset classes (i.e., cryptos, stocks, bonds, commodities, ETF, etc.), without having to hold the underlying assets.

  • No counterparty risk: remove any central party with privileged control, and anyone can mint synthetic assets against their collaterals in a decentralized, permission-less, and censorship-resistant manner.

Introducing dForce synthetic assets.

dForce synths are ERC20 / BEP20 tokens which can be minted, redeemed, transferred and traded at any time. dForce can support any synthetic asset subject to governance approval by DF holders. Anyone can signal which asset you want on dForce through forum. Currently, synthetic assets available on dForce are:

What are benefits of dForce synthetic assets?

As said, similar to traditional financial derivatives, synthetic assets derive their value from underlying assets and realize profit without the necessity of holding the actual asset itself.

With built-in multi-sided lending, all supported assets on dForce Lending can be used as yield-on collateral to mint synthetic assets, which will effectively improve capital efficiency and robustness of the system with unlimited collateral and synthetic capabilities.

Click here to read more about dForce Lending & Synthetic Asset Protocol.

Audit

We engaged four global audit firms to perform security audit and formal verification for our lending & synthetic asset protocol:

  • Trail of Bits

  • ConsenSys Diligence

  • Certora

  • Certik

Click here to review audit reports.

Enter the App

Mint or burn through: dForce Lending‚Äč