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So what generates these "synthetic" stocks? It doesn't sound like futures or simple bets. From the article, its almost sounds like they're almost selling NFTs
by jayd16 5y ago
So what generates these "synthetic" stocks?
It doesn't sound like futures or simple bets. From the article, its almost sounds like they're almost selling NFTs of a photograph of a stock created form whole cloth. That can't be right, can it? Surely its backed by something?
- gentleman11 5y agoLike the rest of the blockchain?
- jayd16 5y agoSo stocks are randomly awarded to miners? Like any stock or each stock is its own chain? The stocks are not backed in any other way?
- mannerheim 5y agoMy understanding is that they're smart contracts that are collateralised by cryptocurrency.
- usrusr 5y agoSounds like "stock collapses: I win, stock rises: you get the collateral or the gains, whatever is lower"
- deleted 5y ago[deleted]
- ruuda 5y agoIt's described here: https://docs.synthetix.io/litepaper https://docs.synthetix.io/litepaper Some users, called stakers, put up collateral, and in return the contract mints a synthetic asset. Stakers can destroy ("burn") the synthetic asset to unlock their collateral. The exchange rate is based on price feeds that oracles publish to the blockchain. There is an incentive for stakers to mint or burn the synthetic asset until its price matches the one published by the oracle.