Synthetic assets, one of the most promising use cases for Decentralized Finance (DeFi), have become an increasingly competitive landscape as two new projects aim to provide scalability and new markets for traders .
According to Queen Telegraph, last Friday the Injectiv exchange started a protocol for decentralized derivatives, a push towards synthetic assets with the launch of the artificial gold market around the clock, seven days a week on the network. Test their Solstice II class.
As Mira Odin, Head of Business Development Injectiv for Cointelegraph said: It's somewhat interesting that gold is being explored for the first commodity futures contracts on Injective because Bitcoin and gold have the dynamics. A rather interesting market. I think it is only natural to present this dynamic to the field of decentralized finance.
synthetic asset markets such as Injective are often characterized by a notorious liquidity problem; To create assets that track price movements in the real world, there must be a readily available pool of liquidity to absorb those fluctuations. Injective aims to overcome these hurdles with well-funded investors taking on the role of early users.
Odin explained: First we will include our investors who are also market makers and build strong liquidity support in all markets. Therefore, we will first smooth the liquidity with our existing investors.
she added that the upcoming liquidity mining mechanisms will also motivate market makers to join the platform and create competitive spreads.
Odin has also shared with Coin Telegraph that Injective is pursuing a robust roadmap including test network upgrades by the first quarter of 2021, and the launch of a fully-fledged flagship network in the second quarter. From 2021.
The Injective announcement comes after the launch of another synthetic asset platform, Mirror Protocol, which is currently focused on US tech stocks.
Mirror requires a 150% guarantee rate for synthetic assets such as mAAPL, and is based on Blockchain Cosmos.
However, one of the oldest and most successful synthetic asset platforms, Synthetics, has a host of upgrades planned to compete with these upstart protocols.
Synthetics is among several decentralized finance giants currently planning to roll out Layer 2 expansion solutions, and a recent blog post outlined how synths can provide ...
