Crypto Synthetic Assets - Business Prospects
Let me prove why your business model in DeFi and blockchain technology will be groundbreaking in the next two years.
At the time of writing, the total value locked in DeFi contracts is already at $11.1 billion. The global blockchain market size is expected to grow from $3 billion in 2020 to $39.7 billion by 2025, as per Blockchain Market Reports.
It proves the sure-shot success of your DeFi-based busines.
But how exactly can crypto synthetic assets into tap into the potential of DeFi?
Why is it the latest buzzword? How to attract more investors into opting for crypto synthetic assets?
All the above stats confirm people are increasingly shifting towards cryptocurrency and blockchain technology. However, a majority of global population has access to only fiat currencies, though they love to deal with crypto. But they are skeptical about the price fluctuation of cryptocurrencies, and even wish to invest and trade fiat currencies on-chain.
That’s exactly what crypto synthetic assets do.
Crypto synthetic assets are a mixture of assets in which both the assets have the same value. Synthetics combine derivatives (options, swaps or futures) that simulate an underlying asset which can be gold, silver, real-estate (or) any real-life commodity.
In short, by using cryptocurrencies (or) synthetic assets, investors can track the value of any real-life assets with still being a part of crypo ecosystem.
Such a convenient mode of financial investment protocol is here to stay for the future.
By using these unique synthetic assets, investors can still hold tokens that track the value of some assets without needing to leave the cryptocurrency ecosystem.
The Future of Crypto Synthetic Assets
“Around 1 billion adults remain unbanked in our world”
World Bank Group.
DeFi effortlessly tackles the situation by providing equitable financial opportunities across the world. And all people need is a smart phone with an internet connectivity.
Hence, DeFi-based crypto synthetic assets business models are deemed futuristic.
Example: Imagine you wish to purchase a land. But you don’t have the necessary funds. Also, the complications involved in the process is tedious.
With DeFi and crypto synthetic assets, users could purchase a fractional part of land with fiat currencies (USD or INR) without actually owning the land. The synthetic asset (token) tracks the value of land, and when the land’s value increases, the token’s value is also subjected to increase.
Imagine the possible popularity level of this investment model in the upcoming years. People can easily invest in and trade both traditional assets and digital assets online, with just a smartphone, without owning any commodity, and still being anonymous.
This is finance on a whole new different level.
How does crypto synthetic asset protocols boost your revenue?
Decentralized finance (DeFi) has revolutioned the finance space with multiple breakthrough inventions. Coupled with blockchain technology, the entire architecture offers more stability and transparency than the conventional banks.
Owing to the platform’s security and transparent nature, it lures in massive customers across the world.
Also, crypto based synthetic assets’ game-changing ability to help investors access almost all the assets in the world holds the key in revenue generation. Because, in DeFi, liquidity has always been a concern. But due to the presence of infinite assets, the protocol is guaranteed to attract a good deal of users.
The main reason why crypto synthetic assets are becoming popular is due to its benefits.
Crypto synthetic assets,
- Reduces the risk faced in conventional assets.
- Counters the price fluctuation issues with derivatives.
- Helps investors earn higher returns.
Above all, as an entrepreneur, the primary source of your income is the transaction fee because synthetic investments cost more.
Crypto synthetic assets are considered as a win-win deal for both the entrepreneurs for building the protocol and the enlarged user base’s for having received the opportunity to invest, trade, and acquire all kinds of assets with zero complexity.
Top crypto synthetic assets trading platform
Synthetix and UMA are the two top DeFi-based crypto synthetic asset building protocols.
Synthetix lets user stake its native coin and earn synthetic tokens to tokenize any asset. UMA helps users create their preferred derivative agreement in smart contracts, with a rigid Oracle feeding real-life data to the smart contract.
Though they sound simple, they serve the needs of global consumers.
The staggering market capitalization of their business, as depicted in the diagram, reveals the potential of synthetic assets in the future.
Develop a DeFi protocol for building Crypto Synthetic Assets with Osiz Technologies
Osiz Technologies, a leading DeFi Development Company, has 10+ years of experience in blockchain technology. Our pool of blockchain architects and DeFi developers are guaranteed to deliver quality DeFi protocols that help your users build and trade their synthetic assets.
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