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If you specifically want to avoid speculation, you could also provide liquidity with stablecoins and collect fees from people trading against your liquidity. F
by drdrey 5y ago
If you specifically want to avoid speculation, you could also provide liquidity with stablecoins and collect fees from people trading against your liquidity.
For people outside the US, they could also get price exposure to US stocks with things like sAAPL, sGOOG, etc (synthetic assets that represent an underlying equity)
- uh_uh 5y agoHow do these synthetic assets implement tracking the original asset price? Are the assets still subject to the swings of the general crypto industry (e.g. BTC crashing pulls sGOOG down as well even though Google's real stock appreciates)?
- drdrey 5y agoFor a protocol like Synthetix, I believe it uses price feeds provided by Chainlink. In principle, you can always redeem a token like sGOOG for the current price of GOOG on the regular stock market. In practice, there is some risk that an asset could lose its peg. https://docs.synthetix.io/litepaper/#synth-pegging-mechanism https://docs.synthetix.io/litepaper/#synth-pegging-mechanism