Synthetic Tokens
What are Synthetic Tokens?
In the broadest sense, synthetic assets are a type of financial derivatives giving its owner exposure to an underlying asset without having to actually hold it. A synthetic asset is simply a tokenized derivative that mimics or mirrors the value of another asset.
Imagine that you want to trade Gamestop stocks without holding the $GME asset itself. Or, do you want to gain exposure to S&P500 index movements without having to hold the underlying basket of stocks? No problem. What about gold and silver? Yes. How about…something more exotic like becoming a Bitcoin miner without owning any hardware but simply by holding the right synthetic asset.
Well, all this already exists, and it's the evolution for many asset classes that wish to gain exposure to the decentralized and tokenized world of cryptocurrencies.
FTMX (pegged-FTM)
FTMX is a Fractional-Algorithmic Synthetic Token pegged to the value of 1 FTM on Fantom Opera.
The protocol aims to maintain FTMX token’s price stability, in other words the peg, by storing sufficient collateral in the time-locked smart contracts. This collateral is used for redemptions, helping to maintain price stability.
The Fantasm team are Fantom Ecosystem users and supporters. The FTMX synthetic token explicitly gives FTM holders another great use case and a way to earn yield via additional rewards on top.
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