The much anticipated synthetics feature is live on THORChain. Users can mint, redeem and swap synth assets on THORSwap and Brokkr Finance.
The much anticipated synthetics feature is live on THORChain.
Users can mint, redeem and swap synth assets on THORSwap and Brokkr Finance.
Synthetic Assets (“Synths”) are a collateralized representation of an asset on THORChain. These derivatives of cryptocurrencies such as Bitcoin, Ethereum, etc will always have the same value as the original asset.
Unlike Wrapped Assets, THORChain Synths are backed by THORChain Liquidity Pools, which contain 50% of the original asset and 50% $RUNE. THORChain Liquidity Pools ensure that the synth price always remains 1:1 with the native token price. Collateralization via pool ownership ensures always-on liquidity and pricing. In short, there is always a direct correlation between the Synth and the Assets which are being secured.
Synths have great utility for traders and arbitrageurs, as they can be transacted nearly instantly and at a fraction of the cost compared to native L1 swaps. This is due to the fact that synths solely live on the highly-scalable THORChain network (so no need to worry about different chains, gas prices, wallets). In the future, it will allow THORChads to also earn yield with Synths thanks to vaults and provide other exciting THORFi utilities.
Synths are simple, easy and cheap
• 50% slip-fee reduction
• 5 Second confirmation Time
• Fixed 0.02 $RUNE outbound (tx) fee