Synthetic technology is quickly redefining the future of DeFi and increasing the efficiency of high-volume traders. Existing synthetic protocols encourage better yield opportunities, increased capital efficiency, and high-volume DEX liquidity. Let’s descend into the depths of crypto’s leading synthetic protocols and see how they are changing the landscape of DeFi.
MakerDAO utilizes a multi-collateral staking engine to support the generation of DAI, a synthetic representation of the US Dollar. The Protocol supports various tokenized assets or productive assets to be staked as collateral. The process is similar to lending protocols as a user “stakes” their chosen collateral to generate DAI.
Although MakerDAO has proven itself to be a successful protocol that employs synthetic features, it is extremely limiting as you can only mint one synthetic asset (DAI). MakerDAO is an optimal solution for users looking to mint their first synthetic asset and begin their synthetic journey.
Synthetix is often regarded as one of the most significant derivative liquidity protocols in DeFi due to the myriad of synthetic assets you can generate. Not only does Synthetix support multi-chain, but also fiat currencies, stocks, commodities, and anything else tied to value.
Synthetix’s Kwenta enables users to swap between multiple assets with zero slippage.
If you consider depositing multiple assets as collateral to be an act of wonder. Abracadabra enables users to deposit collateral across multiple chains, similar to MakerDAO, to generate their synthetic stablecoin $MIM. Abracadabra stands out when users want to use the bluechip holdings to leverage yield farm and multiply APY.
Now, as we have broken down each of these protocols, you may have noticed that each protocol has a unique set of synthetic features that holds a powerful benefit for their users. But what if there was one protocol that combined all of these components and created one complete synthetic application? A protocol where users can choose naked or productive assets to generate a multitude of synthetics, which could then be swapped on a synthetic marketplace with zero slippage.
Metronome Synth takes advantage of all the best features of existing primitives and combines them into one cutting-edge protocol. Synth supports synthetic generation to supercharge bluechip holdings and creates increased yield opportunities. The Synth Marketplace encourages high-volume DEX liquidity through zero-slippage exchanges on crypto assets.