Synthetic assets aren’t new, however, they have been adapted and changed to fit DeFi. To understand how crypto synths are becoming popular, you must first understand what they are. We explain the details in our blog “Synthetic Assets: The Future of DeFi”.
Now having read all about synths, we can dive into why they are becoming so popular.
Why are Synthetic Assets Growing in Popularity?
Synthetic assets are a very appealing proposition. They allow users from all over the world to hold positions that are otherwise inaccessible, while still reaping the benefits of the underlying asset. This means non-EVM tokens and multi-chain generation are easily available.
The fact that “synths” are decentralized and permissionless means users can trade, stake, transfer, yield-farm, generate, and much more without the need for centralized intermediaries. All this removes the risks that are typically associated with centralized parties, such as data hacks and government interference. This is especially appealing to those who have had to deal with financial roadblocks in the past.
Composability plays a big part in the success of DeFi as a lot of these dApps can be plugged into each other seamlessly. This is extremely important to note because it allows for smooth scale and growth, as well as paves the way for new technologies to be built and customized. Alone, these synth platforms perform well, but together they thrive.
Another very attractive component of synthetic platforms is that they are able to facilitate zero-slippage trades and can provide “infinite liquidity.” These perks will allow users to accomplish the following:
- Low net fees
- Insulated price fluctuations
- Usage of standardized and trusted web3 wallets, such as MetaMask.
How to obtain Synths
With the launch of Metronome Synth, users can expect to be able to generate synthetic assets with ease, taking advantage of the simplistic UI that is unmatched in today’s market. Once in, users will be able to navigate the platform effortlessly and access assets.
MET Synth is the first to offer a multi-collateral/multi-synthetic generation of crypto assets. If a user chooses to do so, they can obtain synths on traditional DEXs and swap them on the Metronome marketplace, where zero-slippage trades are facilitated. For more experienced DeFi users, equip personal market strategies by visiting the staking portal where posting collateral is enabled to unlock the ability to long or short positions.
Metronome Synth Summary
Metronome Synth is a new multi-collateral/multi-synthetic protocol enabling users to stake collateral, including interest-bearing collateral and naked collateral, from their existing crypto holdings to create synthetic versions of other popular crypto assets. Users will continue their Metronome journey in the Metronome marketplace where they can swap between synthetic assets with zero slippage. The Metronome Synth protocol is powered by the MET token, which can be used as collateral and acts as the MET DAO's governance token.