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Use Cases

Some use cases of dForce synthetic assets

Example 1: users can buy xTSLA on DEX if you anticipate the value of TSLA will rise, and sell it later to profit from the price change.
Example 2: mint USX against USDT (or any other asset supported on dForce Lending), and supply the same dollar value of USX and USDT to a liquidity pool on DEX, you will earn: 1) saving yield on collateralized USDT; 2) rewards for providing liquidity to the pool (subject to liquidity mining program of dForce and DEXes supported); 3) trading fees earned as a LP from trades that happed in the pool.
Example 3: let’s take a little bit further, we now know minting and destroying dForce synthetic assets tracks, via Chainlink, the price of reference assets, but assets traded on AMM are priced according to a mathematic formular which may produce a quote variance. Therefore, users will be incentivized to mint xTSLA and sell it at a higher price on secondary market (AMM). Vice versa, if xTSLA is traded with a lower price, users can buy more xTSLA on secondary market, and the excess part of the cut is your earnings.
Last modified 4mo ago
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