Leveraged synthetic assets are one of the fundamental reasons we're developing Spartan Protocol. These planned derivatives are completely unique to Spartan Protocol and can not be found anywhere else in DeFi.
Based on the current implementation; the first phase of Spartan Synths will see their main utility enabling users to swap any listed BEP20 asset for a SynthYield asset exposing them to the yield benefits of providing liquidity without the impermanent loss exposure
This in essence is 'going long' on the asset underlying the synth (ie. if you wanted to 'short the market' during a bear cycle, you could mint a synthetic stablecoin like BUSDs and park that SynthYield token in the SynthVault to earn yield on your stablecoin). For another example; if you thought BNB was about to pump; you could mint BNBs and park it in the SynthVault to not only benefit from the appreciating BNB asset price; but also have it earning compounding interest. The incentives are aligned with longer-term positions however, similar to providing liquidity in the pools, so the benefits are much greater over long periods and not really suitable for short-term day-trading.
At first, the assets with the deepest liquidity pools on the platform will be supported. Only assets that have enough internal liquidity to support a floating SynthYield supply will be curated. Synths will likely include at first (but not be limited to):
  • BNB
  • BTCB
  • BUSD
  • USDT
Future phases could theoretically include supporting a basket of BEP20 assets, rather than 1 particular asset. As well as any gold-backed or stock-backed BEP-20 asset. But for now, the goal is to enable yield-generating synthetic assets for Spartans who are hesitant to provide liquidity or looking to hedge/customize the capital exposed by their liquidity position.
The ability to mint synthetic assets will give Spartan Protocol a veil of protection against any bear market that the crypto world may face.
Last modified 4mo ago
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