What Are Crypto Synthetic Assets?
Crypto synthetic assets, also known as "synthetic assets," belong to a category of digital financial instruments designed to replicate the behavior and value of real-world assets or financial instruments. These artificial assets are crafted using intricate financial derivatives and smart contracts on blockchain platforms, primarily within decentralized finance (DeFi) ecosystems. Key characteristics of crypto synthetic assets include the ability to create decentralized smart contracts on blockchain systems like Ethereum, employ collateral to secure value, accurately track target asset prices, and create flexible leveraged or derivative products.
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