This is not just your ordinary guide. This is the essential guide to THORChain synthetics by Brokkr team. Alpha leaks inside as well.
THORChain synthetics are derivatives of cryptocurrencies (like Bitcoin or Ethereum) which always keep the same price as the selected coin. They run on THORChain, and they have the same attributes as the THORChain native coin $RUNE.
The Brokkr team has put together a powerful essential guide.
However, as a summary, the main use cases for THORChain synthetics according to Brokkr are highlighted below.
Cheap & Fast Crypto Trading: Lower fees will enable all coins to be traded more, increasing their volume. And higher volume means higher APY, which will attract even more people and liquidity
Enhanced Investing: Synthetic vaults (THORSavings) provide a way to earn up to 20% interest on your coins (at the beginning only 5%).
Self-repaying Loans: You can take the loan which will be paid automatically by the interest the vaults generate from the locked synthetics.
Investment Diversification with Crypto ETFs: Synthetic Crypto ETFs are baskets of different coins that can be used for diversifying crypto investments. There will be countless variations of how the ETFs could be combined, from “Top5 coins”, to “Dog coins only”.
Gaining Interest on $RUNE: Synthetic RUNE will enable generating yield on top of your $RUNE funds
Using THORChain Assets in Cosmos Ecosystem: Hypothetically, you could use interest bearing synthetic BTC on Terra network as collateral.