Synbit synthesizes everything, creating a brand-new world
As a decentralized synthetic asset issuance protocol running on Ethereum, Synbit protocol can be used by anyone to recreate traditional financial products and financial derivatives based on cryptography currency, etc. Providing traders with a wide variety of digital assets and traditional financial derivatives trading, Synbit is committed to offering users a safer, more convenient and more efficient synthetic asset trading platform. Compared with the current synthetic asset platform, there exists a tremendous room for enhancement in security guarantee, risk control, issuance mechanism, trading experience and reward mechanism.
Synbit creates a mirror world for real-world assets, which makes assets in traditional trading world traded on the chain via Synbit. On synbit, we can buy and sell stocks, real estate, precious metals and commodities. Of course, only the virtual assets of these financial assets have the access to be traded on the chain. However, we can anchor the asset prices of these trading objects in real time and explore the financial boundary through Oracle.
Synbit is primarily used to create synthetic assets on the chain and the value of all synthetic assets is supported by its mortgage assets. When the mortgagor creates the synthetic assets, debts will be generated. The collateral assets are currently preset as ETH, DAI, SYN, USDT and USDC. When the mortgagor creates the synthetic assets, debts will be generated and he or she must destroy the synthetic assets to repay the debts before unlocking the mortgaged assets. Also, users can directly exchange with other sorts of synthetic assets by purchasing synthetic assets.
Apart from synthetic assets, users can also directly exchange with other sorts of synthetic assets by purchasing synthetic assets. Users will get double rewards in the process of creating or purchasing synthetic assets: (1) Benefit from trading (2) Provide liquidity for the platform to gain revenue. Encourage users to provide liquidity for the platform and promote ecological development through rewards.
In addition, Synbit adopts a unique asset trading model: firstly, users do not necessarily need a counter party to trade assets. When a trader hopes to exchange pUSD into pBTC, he or she can convert it directly based on the current price without a counter party; Secondly, Synbit provides unlimited liquidity in theory without trading slippage, which effectively addresses the liquidity and slippage problems faced by DEX (Decentralized exchange).
Why do people use Synbit?
1. Synbit helps investors reach a broader asset class.
The transaction can be carried out without actually holding the asset through synthetic asset transaction. You can trade the asset, for example, even if you don’t hold btcor Apple Inc. stock. This sort of transaction can not only reduce the friction of asset exchange, but also carry out rapid exchange between different types of assets, such as Tesla stock, gold, oil, bitcoin and other different assets. Therefore, synthetic assets can help investors reach a wider variety of assets and enable assets to reach a wider variety of users.
2. Realize arbitrage
Linked to USD, pUSD is traded in the open market, and the price fluctuates inevitably, which may be higher or lower than USD price. The participants of synthetic assets trading generate synthetic assets by mortgaging specific assets, thus realizing arbitrage from asset price fluctuations. In addition, if users expect an asset (such as BTC) to rise, they are able to obtain the opportunity to earn income by purchasing the synthetic asset (pBTC) of the asset. The price is the same as that of the real asset, which means that once the user purchases, he or she also accepts the possibility of the asset going up or down. Suppose users expect an asset (such as BTC) to fall, they can earn income by selling the synthetic asset (pBTC) and enlarge the income space by purchasing the reverse synthetic asset (nBTC) of the asset.
Being a new concept in the DeFi world, synthetic asset owns a broad development space and unparalleled trading experience. As a token economic mechanism with smooth trading experience and exquisite design based on the concept of synthetic assets, Synbit presents a complete experience of casting, trading and position management. We will constantly verify the security of Synbit and accumulate user trust in practice.
