Why trade synthetic assets?
Synthetic assets provide exposure to any asset class without having to hold the underlying resource. They allow holders to gain exposure to various asset classes outside the crypto world without having to transfer their cryptocurrency into an exchange or hold the actual underlying asset themselves, reducing counter-party risk to zero.
- Seamless on-boarding process
- Immediate bridge to other asset classes
- Censorship resistant
- Reduction of process when switching between markets
- No KYC or excessive sign up process
- Collateralized by the community
How does it work?
Synthetic assets track the price of specified underlying assets through a price pegging system built into all synthetic smart contracts. All synthetic asset smart contracts which track prices are backed by the Sigma Risk Index algorithm and its native token, which is staked as collateral at a variable ratio based on present market conditions.