In the past year, the development of DeFi has been changing with each passing day, with innovations in basic components such as transactions, lending, and stablecoins constantly emerging. However, some people say that DeFi is just copying the successful model of traditional finance and constantly filling in the missing pieces. In fact, standing on the shoulders of its predecessors, DeFi is also exploring new areas. Synthetic assets are such original innovations.
Synthetix, UMA and Mirror, as representative projects of synthetic assets, have all achieved considerable growth. Among them, Synthetix’s locked-up assets have exceeded US$3 billion. But this seems to be far from enough. Synthetic assets allow DeFi citizens to copy all assets, which is expected to release the market potential of “tokenize everything”. What exactly are synthetic assets? How is it innovative? Can we start the next big era in the encryption world? Let’s take a closer look at the head players of this emerging track.
What are synthetic assets? What is the value?
” Coinbase View: An Analysis of the Potential and Risks of UMA and Synthetix and Other Cryptographic Synthetic Asset Platforms “
Most DeFi applications are like replica products of traditional finance, and synthetic assets offer another possibility: a market where “everything can be tokenized”.
” Brief description of the characteristics, advantages and disadvantages of various types of on-chain synthetic asset models “
Different synthetic assets have different design mechanisms, and users need to choose their own synthetic asset agreement according to the endorsement assets and holding period.
” Synthetix and Mirror’s lock-up amount is growing rapidly, synthetic assets become the next trend of DeFi? 》
Compared with the already popular areas such as DEX and lending, do small-scale synthetic assets have greater potential?
Synthetix
” An article to understand the characteristics and operating mechanism of the popular DeFi synthetic asset platform Synthetix “
Synthetix brings a new gameplay of synthetic assets to the DeFi world, and provides a complete product of casting, trading, and position management.
How is the Synthetix experience of Optimism’s Layer 2 version? 》
Although this Layer 2 network is very early and may encounter many unknown defects and problems, there are still many users who dare to try. The value of SNX migrating to the Layer 2 network is close to 40 million U.S. dollars.
” Synthetix Founder Review Project 2020 Development Thread “
The next focus of Synthetix is the migration to Layer 2 and the construction of the V3 version.
” Reduce 75% transaction slippage? Synthetix founder briefs on the “virtual Synth” feature “
Synthetix announced a new feature called Virtual Synth, which can greatly reduce DEX transaction slippage by bridging multiple pools in a single transaction.
” Interpretation of Synthetix’s New Development: Migrating to Layer 2 and Cross-asset Exchange with Curve “
Curve’s cross-asset exchange integrates Synthetix’s virtual synthetic asset trading function, which can improve slippage problems under large-value transactions.
UMA
” In addition to stocks and currencies, how much imagination can the DeFi protocol UMA create on synthetic assets? 》
Synthetic assets developed based on the UMA protocol take into account the fun or user needs. This may be what a “synthetic asset” should look like, rather than being constrained by “oracles”.
” A game design that conforms to human nature is the safest? The founder of UMA elaborated on how to defend against flash loan attacks “
Learn about UMA’s “no price feed” financial contract, which is said to be able to withstand lightning loan attacks.
” Everything can be mined, UMA’s developer mining plan is here “
There is an opportunity to participate in mining profit without requiring capital, relying only on technology and creativity.
” Hedging the Ethereum Gas price? Brief Analysis of UMA Ecological uGAS Operation Mechanism “
uGAS is a simple method for traders to speculate, and it is also a reliable strategy for Ethereum users and miners to hedge transaction fees.
Mirror Protocol
” Trade U.S. stocks on Uniswap? Brief Analysis of Mirror Protocol Operation Mechanism and Token Economy “
Mirror Protocol anchors the price of U.S. stocks by casting synthetic asset mAssets, thereby linking cryptocurrencies with traditional markets.
“With a 10-fold increase in trading volume in two months, what is the potential of Mirror’s US stock synthetic assets? 》
The trading volume of Mirror Protocol US stock synthetic assets increased by 1051.5% in two months, and liquidity increased by 777.26%.
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