DeFi Crypto Synthetic Assets Development

The Decentralized Finance ecosystem is set to have locked a total value of around $20 million. More investors are open to the crypto ecosystem and entrepreneurs and businesses are on the lookout for feasible business models to make profitable returns.

One DeFi protocol fits this mold - Synthetic Asset Development. Synthetic assets hold the same value as underlying assets and are built on derivative smart contracts. Using synthetic assets involves low risks. And since derivatives are involved in the process, there is no fear of price fluctuation for users. Crypto Synthetic Assets are pegged with a slew of benefits for users.

We, at Blockchain App Factory, are experts in the realm of DeFi protocol development. Having built and launched several DeFi platforms like DeFi token development, DeFi Smart Contract Development, DeFi Staking pool development, our services will guarantee success for your DeFi Crypto Synthetic Asset development needs.

What Are Crypto Synthetic Assets?

At its core, Synthetic Assets are basically a fabrication of real-world assets. The replica of real-world assets is built on derivatives, which are combined with Synthetic Assets. Derivatives are smart contracts and they get their value from an underlying asset such as stocks, commodities, currencies, indices, bonds, and interest rates. There are many types of derivatives. Examples include futures, swaps, and options. Synthetics combines these various derivative products that simulate the underlying assets.

Crypto Synthetic Assets support tokens in the DeFi landscape such as stable coins. The function of synthetic assets is to bring in a version of other assets such as gold, silver, fiat currency, and any other real-life commodity into the decentralized network. By using crypto synthetic assets, the investors can hold tokens, without leaving the crypto space, whose value comes from the above mentioned underlying assets. In the crypto space, these synthetic assets will take the form of cryptocurrency tokens.

The Benefits Of Crypto Synthetic Assets In The DeFi Space


  • Liquidity provision - Synthetic assets solve this issue by providing liquidity to the network. With more liquidity, more assets can be bought and sold with ease without disturbing the balance of the asset prices. This reduces the cost for investors.
  • Financing - parties holding synthetic assets can pool their assets into protocols and can take or receive loans.
  • Low funding costs - Investors will want to increase the value and demand of their assets without altering the interest rates. Tailored cash flow patterns will incentivize investors to offer funds at low rates.
  • Opportunities to invest, trade, and own all kinds of assets with no hassles or complications.
  • Enjoy all benefits of decentralization - The immutability, permissionless, and trustless nature of decentralization can be fully experienced.
  • Secure smart contracts
  • Data is stored in distributed ledgers
  • Exposure to a variety of assets without owning or holding the underlying assets
  • Reduces all the risks that come with buying and selling conventional assets
  • Issue of price fluctuations is dealt with derivatives
  • Investors can invariably earn high returns

Synthetix - The Supreme Synthetic Assets protocol


This platform is a synthetic asset issuance protocol that is decentralized and built on the Ethereum network. Users can enjoy a variety of functions in the likes of staking and governance options using SNX, the currency that powers the Synthetix protocol. The protocol users are allowed to

Mint crypto assets and tokens that are a replica of real-world assets (real estate, gold, US Dollar) and crypto-assets(Bitcoin, sUSD, etc) by staking their SNX tokens.

At the same time, users can also burn their assets in exchange for SNX tokens. These mechanisms make sure that the collateralization ratio is maintained.

Other mechanisms within this protocol include an Escrow arrangement where the protocol holds assets, or more specifically SNX tokens earned as rewards for staking, until the day they can be claimed

Synth - The protocol's synthetic assets called Synths hold the value of real assets and introduce it to the blockchain network. A wallet can be integrated into the platform through which users can revamp their real-life assets to synths. There are several types of Synths within the protocol supporting different assets. Forex - track forex currencies, Commodity Synths - track the price of commodities, Cryptosynths - track the price of cryptocurrencies.

Governance within the Synthetix protocol - the ownership of tokens within the Synthetix protocol will allow for a series of governance and voting rights.

With our DeFi Synthetic Asset Development Solutions, you can provide users with these varied functionalities all within one feature-filled platform.

Other Synthetic Assets Protocols Already Existing In The DeFi Crypto Space

1

Abra

One of the first Synthetic protocols in the crypto space, Abra converts any funds in its wallet to Bitcoin that is pegged to the US Dollar. Abra maintains a BTC/USD peg. The protocol guarantees that any fund that has been deposited can be redeemed for the full amount irrespective of the price fluctuations of either BTC or USD.

2

UMA

Called Universal Market Access, this protocol provides financial markets on the Ethereum network. Although this protocol works similarly to conventional financial operating systems, UMA employs smart contracts using public distributed systems.

3

Market protocol

here, the synthetic assets function as collateral. The tokens used in this protocol are named as long and short positioned tokens and combined as pairs. It provides an opportunity for those holding cryptocurrencies to have a taste of both real-world and crypto assets through derivatives on the blockchain network.

4

Maker Dao

one of the most popular protocols in the DeFi system, it makes use of Stablecoins like Dai by pegging it to the value of the US Dollar.

5

Rainbow Network

it is an off-chain decentralized exchange that allows users to lend, borrow, trade, send and receive any liquid assets.

Alternative Use Cases And Opportunities Of Crypto Synthetic Assets

  • DeFi lending and borrowing services

  • DeFi derivatives

  • Asset management tools

  • Scaling liquidity

  • Scaling assets

  • Scaling technology

  • Scaling participation

Develop And Launch A DeFi Protocol For Building Crypto Synthetic Assets With Blockchain App Factory!

The Decentralized Finance sector is growing rapidly with innovative and new protocols and dApps popping up continuously. Building crypto synthetic assets within DeFi is an up and coming stellar project that has got investors on their toes. Everyone wants to own synthetic assets and enjoy the benefits of holding crypto assets whose values will not change. You can offer such a robust and beneficial platform by parenting with us.

As a DeFi Synthetic Assets Development Company for several years, our experience and knowledge of the DeFi landscape are unmatched. Our completely white label and customizable solutions will ensure your Synthetic Assets in DeFi protocol will receive the highest visibility among crypto investors and traders. Having launched several DeFi protocols and applications, we understand the crypto market and will deliver.

Connect with our experts soon to begin building your own Crypto Synthetic Asset Development protocol!

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