Synthetix, an Ethereum-based DeFi (Decentral Finance) app, announced yesterday that it launched the full suite of its synthetic on-chain derivatives.
The FAANG Equity Synths and sTSLA are now live for trading!
FAANG synthesizers can be traded on @kwenta_io.
You can also earn SNX rewards for providing liquidity in @ BalancerLabs pools for off-market trading: https://t.co/F7H65KSP8F pic.twitter.com/naheCElwJ7
– Synthetix @ (@synthetix_io) April 23, 2021
Introduced in 2018, the derivatives liquidity protocol allows users to issue intelligent ERC-20 contracts – called “synths” – which are used to track and provide the returns on other assets (like stocks and cryptocurrencies … and in theory) something).
SNX, the platform’s native token, is used to provide collateral for issued synthesizers. Valued at $ 2 billion, it is the 56th largest token in the world by market cap at press time.
Trading stones on Synthetix
According to the announcement, users can now trade synthetic stocks of the following stocks: Apple Synthetic Stock (sAAPL), Amazon Synthetic Stock (sAMZN), Netflix Synthetic Stock (sNFLX), Facebook Synthetic Stock (sFB), and Google Synthetic Stock ( sGOOG)) – colloquially referred to as “FAANG” shares.
The synthetic Tesla (sTSLA) introduced last month continues to be listed.
The synths would be available on Kwenta, a decentralized app that uses the Synthetix protocol. This means there is no need to create an account, make deposits or withdrawals, and no need to abandon custody of user funds.
All stocks can be traded against other synths below no slip– the difference between the expected price of a trade and the price at which the trade is executed – regardless of the size of the trade.
The above theoretically enables Kwenta traders to outperform traders in traditional finance by taking the same steps with the same assets, as zero slip (and no platform fees) would allow investors to get more value when entering and exiting positions to achieve.
Traders could also swap cryptocurrencies like sETH, sLINK, sUNI and others for their FAANG positions, opening up an entirely new market area.
Chain link and liquidity
Therefore, the pricing of all synthetic stocks is provided by Chainlink, a decentralized oracle network that connects real data and smart contracts. This is to ensure that all synth prices match that real Asset prices.
All of these standard synthesizers are completely #PoweredByChainlink 😎
TSLA / USDhttps: //t.co/gwGcx32Ln0
FB / USDhttps: //t.co/80edrngm7z
AAPL / USDhttps: //t.co/0Xy2cTIoev
AMZN / USDhttps: //t.co/ckSVPWGLDz
NFLX / USDhttps: //t.co/iko2pJUlCZ
TogetL / USDhttps: //t.co/ISJjGQQr6A pic.twitter.com/GRdo5BIEAi
– ChainLinkGod.eth 2.0 (@ChainLinkGod) April 22, 2021
To ensure a liquid trading environment outside of business hours, Synthetix would provide 2000 SNX per pool (versus sUSD, which is 80% of each pool) for a total of 50,000 SNX.
However, regular working hours would not be a problem. “During regular market hours (9:30 am – 4:00 pm ET), the stock synths can be traded via dApps such as Kwenta as usual against the Synthetix smart contracts with infinite liquidity and with no slippage,” concluded the announcement.
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