As 2021 draws to a close, the leading lineup in the DeFi landscape consists largely of synthetic asset platforms (SAP). An SAP is a platform that allows users to create synthetic products, which are derivatives whose values ââare linked to existing assets in real time. As long as oracles can provide a reliable price feed, synthetics can represent any asset in the world and take its price – whether it is a stock, commodity, or crypto asset. .
As such, SAPs are finally bridging the gap between emerging DeFi platforms and traditional finance, allowing investors to place their bets on any asset anywhere, and all from the comfortable limits of their own. preferred blockchain ecosystem. Decentralized and operating on the first layer of Ethereum, SAPs appear to be the next major catalyst for crypto growth. However, unlike solid money and verifiable works of art, in the world of secured loans, decentralization and secured ownership is only half the equation.
Alex shipp is a professional digital asset writer and strategist with a background in traditional finance and economics as well as the emerging areas of decentralized system architecture, tokenomics, blockchain, and digital assets. Alex has been professionally involved in the digital asset space since 2017 and is currently a strategist at Offshift, writer, editor and strategist for the Elastos Foundation and ecosystem representative at DAO Cyber ââRepublic.
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