What Are Synthetics?
Synthetics are a new functionality of the THORChain network. They are derivatives of other coins and tokens (e.g. BTC or DOGE) and are derived from Liquidity Pools with no risk of Impermanent Loss. Another uniqued feature of Synthetics is that they are always backed by 50% of its original asset and 50% RUNE. Every Synthetic is always redeemable at 1:1 ratio with its underlying native version and you can mint any Synthetic with any asset, e.g. minting DOGE Synthetic with native BTC. If you wish to find more technical details, you can find them here.
Last modified 6mo ago