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1. This thread goes for @synthetix_io! Incredible idea allowing real world assets to be represented in decentralized finance! Let's start!
$snx $ftm
$snx $ftm
2. #Derivatives market is a huge market. In real life it may seem like we are speculating on real assets (like stocks, gold, oil etc.) but no, we are speculating on their prices.
3. Their intrinsic values are almost always cheaper than their prices.
Take #silver for example, do you really think silver would cost that much if we didn't use it as a store of value?
Take #silver for example, do you really think silver would cost that much if we didn't use it as a store of value?
4. Because we are speculating on the prices, different businesses were born.
Like #forex.
Like trading #futures with 100x #leverage. (Yes #binance
i am looking to you.)
You are not buying the real asset on those markets, but you are betting on the price of it.
Like #forex.
Like trading #futures with 100x #leverage. (Yes #binance
i am looking to you.)You are not buying the real asset on those markets, but you are betting on the price of it.
5. And if it can be done in centralized finance, it can be done in #defi right? Right.
Meet @synthetix_io!
Let me try to explain as easy as it can be! (It will still be hard to understand though)
Meet @synthetix_io!
Let me try to explain as easy as it can be! (It will still be hard to understand though)
6. Firstly, you need price feeds of the assets. It's a must, and it can't be wrong. Where do we get it?
From @chainlink of course. From decentralized oracles.
Now we keep track of the price 24/7.
From @chainlink of course. From decentralized oracles.
Now we keep track of the price 24/7.
7. Secondly, we need to somehow able to mint those assets. Are we minting them out of thin air?
Well, yes and no.
It goes like this:
First you buy $SNX token. Then you lock it as collateral. Let's say you locked 7500$ worth of $SNX.
Now you can mint 1000 $sUSD (synthetic USD).
Well, yes and no.
It goes like this:
First you buy $SNX token. Then you lock it as collateral. Let's say you locked 7500$ worth of $SNX.
Now you can mint 1000 $sUSD (synthetic USD).
8. You can not touch to your collateral if you don't pay your 1000 $sUSD back. It's like taking a loan from bank.
And because you have to repay it at some time(because you have 7,5x more in bank) that 1000 $sUSD has the value of 1000 real USD for you.
And because you have to repay it at some time(because you have 7,5x more in bank) that 1000 $sUSD has the value of 1000 real USD for you.
9. And if i know there is a person out there that has to value the synthetic USD as the real USD,
well,
that sUSD is no different from USD for me too. I can always sell it to someone who is in sUSD debt.
well,
that sUSD is no different from USD for me too. I can always sell it to someone who is in sUSD debt.
10. The system has %750 collateralization ratio for now. That means there is always more money on the system than the debt of the system. And for example if $SNX value goes up, you can mint more.
And now if we can mint USD, why can't we mint anything?
I mean ANYTHING?
And now if we can mint USD, why can't we mint anything?
I mean ANYTHING?
11. Maybe synthetic $BTC? Or synthetic $DEFI index?
Or synthetic $Silver Ounce?
Synthetic apples in the future? I want synthetic apples.
Or synthetic $Silver Ounce?
Synthetic apples in the future? I want synthetic apples.
12. And now we have many #synthetics, we can trade on them and bet on them.
Don't forget that these are not the real assets, but representation of them price-wise.
And i know i am struggling to make it easy for you, but it's what it is.
Don't forget that these are not the real assets, but representation of them price-wise.
And i know i am struggling to make it easy for you, but it's what it is.
13. You can ask, what if you buy $sBTC, and $BTC value goes up, who is paying me the money? Do i win out of thin air?
NO. Someone minted that $sBTC, and he/she has now more debt to system. And while you were betting on $BTC price, someone else was betting on anything else.
NO. Someone minted that $sBTC, and he/she has now more debt to system. And while you were betting on $BTC price, someone else was betting on anything else.
14. @synthetix_io team created an environment, where you can trade and bet on anything in real world, without KYC, without bank accounts, without the middlemen.
Just with enormous #ethereum fees.
If you want to read more about it you can visit here!
https://docs.synthetix.io/litepaper/#snx-as-collateral
Just with enormous #ethereum fees.
If you want to read more about it you can visit here!
https://docs.synthetix.io/litepaper/#snx-as-collateral
15. I would say come build on #opera, but we have our own synthetics!
In the #fwallet!
Costing 0.001$ to mint!
Instantly!
In the #fwallet!
Costing 0.001$ to mint!
Instantly!
16. See you in the next thread!
$ftm to the moon!
$ftm to the moon!
17. And if you want to learn how to mint in #fwallet
you can watch here!
you can watch here!
