🪙Synthetic Tokens
Last updated
Last updated
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.
Coming soon: xETH is a Fractional-Algorithmic Synthetic Token pegged to the value of 1 ETH on Base Network.
Coming soon: xETH is a Fractional-Algorithmic Synthetic Token pegged to the value of 1 ETH on Base Network.
The protocol aims to maintain xETH token’s price stability, in other words the peg, by storing sufficient collateral in the smart contracts. This collateral is used for redemptions, helping to maintain price stability, and in safe strategies to earn a passive income.
The Particle Money team are Base Ecosystem users and supporters. The xETH synthetic token explicitly gives ETH holders another great use case and a way to earn yield via additional rewards on to
The protocol is designed to preserve the price stability of the xETH token, essentially maintaining its peg, by ensuring ample collateral is held within smart contracts. This collateral plays a crucial role in redemptions, contributing to the consistent stability of the token's price. Specifically, the xETH synthetic token provides ETH holders with an enhanced utility by offering them an additional avenue for earning yield. This is achieved through extra rewards, enabling them to maintain their single exposure to ETH while reaping additional benefits.
