💎Synthetic Assets
What are Synthetic Assets?
Synthetic assets are financial derivatives that provide exposure to an underlying asset without requiring actual ownership. A synthetic asset is essentially a tokenised derivative that mirrors the value of another asset.
How Synthetic Assets Work
Synthetic assets allow you to gain price exposure to an asset without holding the asset itself. This is achieved through smart contracts that track the price of the underlying asset and maintain a stable peg through collateralisation.
Real-World Examples
Trade Without Ownership examples
Trade Gamestop stocks without holding $GME
Gain exposure to S&P500 index movements without the underlying basket
Access gold and silver markets digitally
Become a Bitcoin miner without hardware ownership
Protocol Use Cases
Gain BNB price exposure with additional yield
Leverage synthetic assets for trading strategies
Participate in governance without selling underlying assets
Access cross-chain liquidity opportunities
Benefits of Synthetic Assets
Capital Efficiency Reduce capital requirements while maintaining price exposure to desired assets.
Accessibility Access markets and assets that may be restricted or difficult to obtain in your region.
Composability Use synthetic assets in DeFi protocols for lending, borrowing, and yield farming.
Flexibility Easily switch between different asset exposures without the friction of traditional markets.
Next Steps: Learn about our flagship synthetic token, $xBNB
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