CeFi is regulated by the government.
DeFi is regulated by the code.
But what stops the growth of DeFi industry?
Thread 𧡠(and small giveaway)
DeFi is regulated by the code.
But what stops the growth of DeFi industry?
Thread 𧡠(and small giveaway)
1/ DeFi will eliminate the need for traditional banking and it will forever change the financial sector.
However, DeFi is far from competing with TradFi and it has to evolve further for industry growth.
However, DeFi is far from competing with TradFi and it has to evolve further for industry growth.
2/ There is a number of factors lacking such as general adoption, friendly UI, self-custody tools, etc.
But the most important factor is liquidity.
But the most important factor is liquidity.
3/
- Liquidity in DeFi is fragmented over 150+ chains and dApps on each of them.
- There is no single efficient and liquid market in the space to compete with the traditional banking system right now.
- Liquidity in DeFi is fragmented over 150+ chains and dApps on each of them.
- There is no single efficient and liquid market in the space to compete with the traditional banking system right now.
4/ This is why I am considering Synthetic assets to be one of the most promising segments within DeFi.
5/ What are Synthetic Assets?
- Synthetics are on-chain derivatives that track the price of certain underlying assets.
- Users can mint synthetics by providing on-chain collateral.
- Users can get price exposure to the underlying asset without owning it.
- Synthetics are on-chain derivatives that track the price of certain underlying assets.
- Users can mint synthetics by providing on-chain collateral.
- Users can get price exposure to the underlying asset without owning it.
6/ Why Synthetic Assets?
- Synthetic assets help to overcome market inefficiency.
- Π‘reate new, never existing before, markets.
- Give investors the tools to hedge, get price exposure, or simply trade efficiently.
- Synthetic assets help to overcome market inefficiency.
- Π‘reate new, never existing before, markets.
- Give investors the tools to hedge, get price exposure, or simply trade efficiently.
7/
- Synthetic assets are decentralized.
- Not regulated by any government or regulatory body.
- Synthetic assets are decentralized.
- Not regulated by any government or regulatory body.
8/ Synthetic assets are tokenized, which allows fractional ownership, resulting in a larger investor base due to virtually no barrier to entry in terms of capital requirement.
9/ Some of the other points are well described in the @rektdiomedes thread (however protocols mentioned in the thread failed or didn't find market fit):
10/ There were no Synthetic solutions to solve the problems mentioned above, especially liquidity fragmentation, until this time.
@synthr_defi is solving them all.
@synthr_defi is solving them all.
11/ Synthr is a synthetic asset protocol that enables users to mint and trade on-chain derivatives using trustless smart contracts eliminating the need for CEXes.
12/ Synthr introduced cross-chain CDP tracking, liquidity, & debt issuance.
It brings access to unchained liquidity without bridges by leveraging @LayerZero_Labs cross-chain messaging protocol.
It brings access to unchained liquidity without bridges by leveraging @LayerZero_Labs cross-chain messaging protocol.
13/ Synthr will, over the course of time, deploy on 10+ chains including:
- ETH, Arbitrum, Optimism, BSC, AVAX, Polygon, and other EVM chains.
- Cosmos IBC (@SeiNetwork)
- Near
- Aptos
- Sui
- @KardiaChain (#1 SEA chain)
And others.
- ETH, Arbitrum, Optimism, BSC, AVAX, Polygon, and other EVM chains.
- Cosmos IBC (@SeiNetwork)
- Near
- Aptos
- Sui
- @KardiaChain (#1 SEA chain)
And others.
14/ There are so many technical implementations that I can not cover in one thread and I will need to write about later such as:
- Atomic swaps (pioneered by @synthetix_io).
- Nuclear port (cross-chain swaps).
- Cross-chain communication.
etc.
- Atomic swaps (pioneered by @synthetix_io).
- Nuclear port (cross-chain swaps).
- Cross-chain communication.
etc.
15/ I will go much more in-depth about the protocol when it goes live (Q1 2023).
Until then you can participate in their early adopter program.
Until then you can participate in their early adopter program.
16/ Now the giveaway part:
This thread is participating in the #Synthread contest with the following prizes:
π₯1st place: 200 USDT
π₯2nd place: 150 USDT
π₯3rd place: 100 USDT
This thread is participating in the #Synthread contest with the following prizes:
π₯1st place: 200 USDT
π₯2nd place: 150 USDT
π₯3rd place: 100 USDT
17/ If this thread wins any of the prizes I will give it away to a random follower.
Additionally, I asked Synthr team to grant 2 roles in their Discord. The winners will receive an Early Adopter role if they do not have it & if they do, they get the OG role.
Additionally, I asked Synthr team to grant 2 roles in their Discord. The winners will receive an Early Adopter role if they do not have it & if they do, they get the OG role.
18/ How to enter the giveaway?
β’ Retweet + like the first tweet of the thread
β’ Follow @DeFi_Made_Here
β’ Follow @synthr_defi and join the discord
Good luck!
β’ Retweet + like the first tweet of the thread
β’ Follow @DeFi_Made_Here
β’ Follow @synthr_defi and join the discord
Good luck!
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