SynFutures: A Synthetic Assets Derivatives Exchange

  • November 17, 2021
  • 21 Views

Blockchain technology is creating the future of fintech. It began as the basis of cryptocurrencies such as Bitcoin, but today, SynFutures is taking decentralization to the next level.

Blockchain technology has real potential and is only now being developed in ways that can realize this potential. Even with all the early innovations, the power of DeFi is still latent.

Many blockchain projects, such as decentralized exchanges, allow the trade of cryptocurrencies have been launched and the newest one is SynFutures.

Unlike other DEXs, SynFutures offers some amazing new trading products.

SynFutures Takes Futures to the Next Frontier

SynFutures is a DEX that uses smart contracts that hold liquidity reserves and works according to defined pricing mechanisms that play a key role in the development of an independent decentralized ecosystem.

The goal of the project is to become the Uniswap for crypto derivatives.

Entering the Fintech space, SynFutures is the newest open and decentralized derivatives platform supporting a variety of assets to be synthesized and freely traded, including Ethereum native, cross-chain, and off-chain real-world assets.

The popularity of blockchain technology is thanks to an endless, transparent, verifiable register of transactions. Blockchain operates without central supervision, so the networks are resistant to fraud.

Blockchain technology is one of the most significant innovations in how data is used since the launch of the internet.

One of their most appealing features is smart contracts which are not only gaining widespread use but also are easily created. Smart contracts are able to replace traditional contracts which are often slow and expensive.

Smart contracts can streamline complex processes that involve several intermediaries, therefore, this also has led to them becoming popular in the blockchain industry.

SynFutures is using smart contracts to give investors and traders the ability to trade crypto derivatives. Unlike many DEXs, that focus on tokens, SynFutures is making crypto derivatives simple to trade.

The appearance of decentralized exchanges (DEXs) also allows holders of crypto assets no longer need to leave the crypto space to swap their tokens.

SynFutures takes this model, and lets people trade and speculate in a range of assets, without the need to trust a central exchange.

SynFutures Brings Derivatives to Digital Assets

SynFutures is a decentralized derivatives platform launched by founders who have rich experience in Defi and Tradfi. The platform is set to launch a decentralized futures market first, then expand its products to become a one-stop shop for derivatives.

A derivative is a financial contract with a value linked to an underlying asset that has price movements. It is used as a tool for hedging and speculation.

In its first version, SynFutures launched a digital asset futures market including futures contracts for almost any asset and with expiration dates created by liquidity providers.

It also uses a Synthetic Automated Market Maker (sAMM), which allows market participants to provide one single digital asset of a trading pair only and the smart contract to synthesize the other, and a Automated Liquidator (ALQ) to reduce the entry barrier of liquidators while also helping automate the liquidation process.

SynFutures was established when the founders realized that derivatives have a huge potential market in the crypto space. Derivatives comprised approximately 70% of the total trading volume of traditional FX derivatives transactions in 2019.

Looking beyond the crypto space, the potential of DeFi is opening new market segments. DeFi is outperforming the traditional financial system, where there are major issues.

A Way Forward for DEXs

DEXs allow anyone to be able to access financial services from anywhere on the planet.

They also are a viable option for people in regions, where banking services are too expensive compared to income, little trust in financial institutions persists, or just financial institutions are simply too far away.

In principle, all they need is electricity, an internet connection, and smartphones. Therefore, this creates a fair ecosystem.

There are usually no registration requirements for DEXs so that people don’t need to provide their information to third parties. Therefore, privacy will be better secured in this space.

In addition, although CeFi derivatives exchanges were able to attract massive attention at first, they still have a number of limitations, including controversial behind-the-scenes mechanisms, and operational inefficiency that limits the variety of trading pairs, and credibilities of Cefi exchanges.

SynFutures is the first futures trading platform that offers Users Generated Markets, a Single Token Model, and Unique Financial Logics.

A User Generated Market is any strategy that allows customers to take part in the creation of the advertising content or the marketing process. This strategy has become increasingly important as it creates a more interactive and engaging experience for consumers.

Users Generated Markets from SynFutures allows anyone to list any trading pairs in 30 seconds and any project to create its own futures market margined in project tokens.

Meanwhile, Single Token Model allows to trade and list crypto majors, altcoins, NFTs, indices, and real-world assets with one single token via its sAMM model. Unique Financial Logics supports long-tail assets even with thin liquidity as well as rigid risk management.

Why SynFutures?

SynFutures supports the trade of digital assets at any time.

Users can create their asset pairs in a permissionless way, and take leveraged long or short positions based on anything such as BTC, altcoins, gold, hash rates, NFTs, and real-world assets.

What makes SynFutures apart from other decentralized derivatives platforms is Users Generated Markets and Unique Financial Logics features.

The decentralized derivatives platform SynFutures approaches both individual users and business clients. Users can find their favorite assets in multi-class and the latest trending asset. It was built to capture the most desired assets on any chain.

For developers, they can do initial futures offering using a rigid Futures model. The platform futures of their project token to boost liquidity allowing them margin and yield farming in the tokens to create demand.

Currently, Synfutures will charge 0.3% on the traders’ transactions. From this, 0.25% goes to LP. 0.05% goes to reserve.

Synfutures launches two new products, including hash rate futures and non-fungible token (NFT) futures.

Its decentralized hash rate futures allow users to bet on many parameters. On the other hand, the team behind Synfutures also would like to leverage the bloom of the NFT market, so that the NFTures product was launched.

Users are able to bet on the future price of NFTs as what works on traditional futures. As such, investors can also use NFTures to trade long and short positions on their collectible instead of only buying and holding NFTs.

As a result, this scales a new market and allows investors to follow more sophisticated trading strategies for speculating and managing risk.

Closing Thoughts on SynFutures

Derivative products are continuously increasing their popularity as potential investment instruments.

While customers only get returns when the assets appreciate in traditional investment, derivative products allow them to enjoy potential gain even when the market is stable or evolved.

SynFutures helps users to approach next-generation derivatives products amid the blockchain technology era that is blooming across many industries.

With SynFutures, users can easily list their own futures contracts in a permissionless way. The platform is designed as a user-friendly, decentralized platform, and can be compatible with as many trading pairs as possible.

SynFutures is currently live on Ethereum, Polygon, Arbitrum, Binance Smart Chain, and plans to continue integrating new networks over time. To learn more about the platform, just click here!

The post SynFutures: A Synthetic Assets Derivatives Exchange appeared first on Blockonomi.

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