What Are Crypto Synthetic Assets?
At its core, Synthetic(Defi Synthetic Assets Development company in India) Assets are basically a fabrication of real-world assets. The replica of real-world assets is built on derivatives, which are combined with Synthetic Assets. Derivatives are smart contracts and they get their value from an underlying asset such as stocks, commodities, currencies, indices, bonds, and interest rates. There are many types of derivatives. Examples include futures, swaps, and options. Synthetics combines these various derivative products that simulate the underlying assets.
Crypto Synthetic Assets support tokens in the DeFi landscape such as stable coins. The function of synthetic assets is to bring in a version of other assets such as gold, silver, fiat currency, and any other real-life commodity into the decentralized network. By using crypto synthetic assets, the investors can hold tokens, without leaving the crypto space, whose value comes from the above mentioned underlying assets. In the crypto space, these synthetic assets will take the form of cryptocurrency tokens.