Introduction
One innovation we have in the crypto sphere is a way to represent any form of assets without purchasing it. In simple terms, we can purchase a token that represents the value of a US dollar or gold as an example.
One of the cool projects that allow this is Synthetix and we can put in the category of DeFi.
What is Synths?
You can see in the picture that you can represent a value in different categories. The platform of Synthetix has created the following assets that you can invest without the need to own them.
Those synths are:
- Crypto
- Commodity
- Forex
- Index
- Inverse
View synths
The platform supports a vast number of assets, but you need to know which one you want to purchase or trade. You can accomplish that simple action and see every asset available at this link.
An example of what you will find is when you are searching for gold as an example.
They represent the symbol with sXAU and each smart contract has this important information as follows.
- Symbol
- Contract address.
- Decimals
Synthetix exchange trade
You need to buy the SNX token to trade on this exchange. As you can see in this picture, the DEX support the following main trading pairs:
- sUSD
- sBTC
- sETH
- sFIAT
You can speculate and trade any assets that the DEX support. I believe is cool when you think about it!
Synthetix exchange loans
Another cool feature of Synthetix DEX. You can borrow money. The interest rate is 5% APR, and this rate can fluctuate for a variety of reasons.
You can borrow because:
- Speculate on a cryptocurrency.
- Invest to buy assets that produce more residual income.
- To pay a debtor or for an emergency.
Conclusion
Synths are a representation of different assets like crypto, commodity, forex, index, and inverse. You can trade all those assets without the need to own them in the ecosystem of Synthetix.
As you can see the full power of what DeFi can bring for us on the table. It is a great era of opportunities.
If you curious and want to know more about Synthetix, you can visit their website.
Chesatochi.com–For the love of crypto and coffee.
PS: I am not a financial adviser, and this is only my opinion. Always do your own research before embracing investment in the crypto space.
