The Power of Fractional Synthetic Tokens
Why fractional synthetic tokens? Because your capital should be working harder, not sitting idle.
Traditional stablecoins and wrapped assets require 1:1 backing, tying up liquidity and limiting capital efficiency. Fractional synthetic tokens unlock liquidity while maintaining asset exposure.
Benefits of Fractional Synthetic Tokens:
ā Maximum Earning Potential through Synth automatica Yield upon Yield Strategies - Passive income potential perfected. Backing and LP are automatically put to use in trusted and vetted platforms so no asset sits idle and earnings potential are maximumly compounded! ā Decrease Stablecoin Fragmentation (xsUSD)- xsUSD will be a stablecoin backed by multiple Solidus chosen stablecoins, but be multi chain native offering a new paradigm in composability and new earnings potential by leveraging the current fragmented liquidity within stable coins and their chain borders and merging it into one multi-stable backed asset ā Increase Earning potential without losing exposure to the market by selling your assets (Non Stablecoin Synthetics) ā Keep exposure to your favorite tokens via synthetic version that tracks their price while earning rewards. ā Improved capital efficiency ā earn more with your capital while maintaining growth potential of your assets. ā Cross-chain opportunities ā Synthetic tokens allow for different token featuresets built into their contracts beyond what the backing token has, allowing for enablement of built-in-bridging to be able to utilize synthetic assets across multiple chains seamlessly. ā Composability ā Use synthetic assets in lending, borrowing, and liquidity pools. ā Scalability ā Over time, fractionalization enables greater adoption and deeper liquidity.
At launch, L1 Synthetics like xsS will start with a collateral ratio (CR) of 90% and xsUSD will utilize a CR of 95% for stability. As the platform gains traction, we will may transition into a lower fractional reserve model that maintains security while optimizing capital efficiency.
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