Like NFTs, one of the new hot topics in the DeFi space is synthetic crypto assets or tokens. We will introduce these new players in a quick and efficient way, explaining why there is so much buzz behind them, and tell you the important things you need to know about this promising digital asset sector.
DeFi Is Here
Decentralized finance (DeFi) is turning the financial and monetary worlds on their heads. While many DeFi products and services appear familiar, such as exchanges, borrowing, lending, and swaps, blockchain tech’s transparent and open nature means that we can move into a completely novel terrain.
When we look at the lending space, we are able to see how DeFi is bringing a financial paradigm switch in the form of synthetic crypto assets. These novel creations, which are sometimes referred to as “synths,” are blockchain-based cryptocurrency derivatives. Synths act and feel like traditional derivatives but are not at all ordinary.
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