SYNTHR’s Solution: Synthetic Asset Tokenization
- 1.What are Synthetic Assets?
Synthetic assets are on-chain derivatives that are like traditional derivatives, which track the price of certain underlying assets while acting like Money-Legos. Users can mint synthetic assets by providing on-chain collateral. This enables users to get price exposure to the underlying asset without having any ownership over it.
2. Why Synthetic Assets?
- Synthetic assets are decentralized; therefore, they are not regulated by any government or regulatory body. This ensures an open and full-access trading channel without the need for lengthy KYC disclosures.
- Synthetic assets are tokenized, which allows fractional ownership, resulting in a larger investor base due to virtually no barrier to entry in terms of capital requirement.
- No involvement of 3rd party intermediaries, thereby eliminating the need for expensive and inefficient custodian brokers.
- Access to 24/7 borderless trading.
- Users can purchase illiquid assets with ease since synthetic assets are not dependent on the liquidity of their real-world counterpart