SynfY.io
  • Introduction
  • Synthetic Real-World Assets
  • Vision
  • Benefits / Problems Solved
  • SynfY Protocol
  • Level 1 (Direct Market Access 1-1 Pegged) – Offchain Liquidity – Low 0% Collateral Model
    • Hedge Pool Layer (H-Layer) / syUSD & Intrinsic Value
    • Zk-Snarks Proof H-Layer
    • Proof of sale real-time
    • ERC721 vs ERC20
    • Synthetic JSON Metadata
    • Practical Examples & Currency Risk Mitigation
    • Benefits & Drawbacks
    • Fee Structure - Spot / Derivative
    • Ongoing debtor fees (ODF in metadata)
    • 1-1 Liquidity pool
    • Quantity Types
  • Level 2 – Onchain Liquidity / Debt Pool / Synfy Token
    • Collateral Ratio
    • Debt Pool
    • Burning
    • Benefits & Drawbacks
    • Fees
  • Early Adopter Benefits
  • Oracle Service
  • Governance
  • Managed synthetic baskets / Robo advisor investing pools
  • RWA interfacing (Real World Assets)
  • syUSD, syEUR, syGBP - non staking required, interest yielding stable currency
    • Benefits of syUSD
    • Standards – ERC20 + zk-SNARK vs ERC 721 + metadata
    • Transparency - Proof of reserve, Reserve Ratio and Custodian
    • Return generation
    • Interest Deposits
    • Market Neutral Investments
    • Beta hedging
    • Technology Stack & flow of funds
    • Weaknesses
    • How to purchase
    • Conclusion
  • Addresses
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Level 1 (Direct Market Access 1-1 Pegged) – Offchain Liquidity – Low 0% Collateral Model

PreviousSynfY ProtocolNextHedge Pool Layer (H-Layer) / syUSD & Intrinsic Value

Last updated 1 year ago

This is where Synfy provisions the asset offchain onto the chain – just in time.

All synthetic asset tokens are backed 1-1 by their respective asset e.g. sySPY. Level 1 acts a bridge between the token (blockchain) and the real-world asset. The token is backed by the real-world asset.

They key benefit of Level 1, is significantly less or 0% collateral needed with this model. Other platforms outlay a 500% collateral, whereas Synfy outlays 0% collateral or a far smaller amount of collateral. The user simply has to put up the purchase price.

Given the asset is 1-1 pegged and backed by the underlying, no actual collateral is required as the P&L is pegged directly to the asset value.

Level 1 also offers the ability to trade far more assets in a given universe, otherwise asset availability would be limited by collateral held in a secondary debt pool model.

See section on benefits and drawbacks of

How Synfy backs the synthetic

The synthetic asset is backed and pegged 1-1 to the underlying, via Synfy’s pool hedging the underlying asset. However, the synthetic token represents an expression of a portion/slice of that hedge liquidity pool layer (and not the underlying).

Level 1 here.