Synthetic Assets - tAsset (available in V2)

Synthetic assets are tokenized derivatives, which are contracts that represent the underlying value of an asset, without requiring actually holding the asset itself. Synthetic assets can be stocks, tokens, indices, NFTs, or other financial products and are produced to mimic the original asset, typically in the form of its price. For example, a synthetic asset of a stock would mimic the price fluctuations of the stock, while a synthetic asset of a token would mimic the price fluctuations of the token.

What can I do with Synthetic Assets?

Defi and synthetic assets are a perfect evolution for derivatives. In the traditional market, derivatives are typically used for three reasons: to hedge a position, to increase leverage, or to speculate on an asset’s price movement.

With the derivatives market being estimated at over $1 quadrillion on the high end, a decentralized derivatives market that is borderless can provide more equal access to investment opportunities globally, as well as introduce new innovative derivative products that have never existed before.

How does Tradeify create Synthetic Assets?

To make a decentralized synthetic assets market possible, Tradeify establishes a system for providing collateral to back the issuance of “tAssets”. The collateral is in the form of Tradeify's native token, “TRY”, which is staked to make sure there is sufficient value underlying all “tAssets”. Dividends are then paid out to all users who have staked TRY to help support the market.

For stability, incentives are in place to make sure stakers actively participate in the staking process to balance out the collateral-to-asset ratio.

tAssets

Synthetic Assets produced on Tradeify are called tAssets. For example, Apple (APPL) stock would be called tAPPL.

USDY

USDY is the core tAsset of Tradeify and is a stablecoin pegged to the US Dollar. USDY is important because the total value of all the synthetic assets (global debt) produced on Tradeify is evaluated and denominated in USDY.

Tradeify will guarantee that USDY is valued at $1.00 when being minted or burned. The value of USDY that exists on the open market could fluctuate in price (based on supply/demand forces), but that would create arbitrage opportunities to profit between the open market and Tradeify. USDY will also facilitate the trading of other tAssets, which will be available on Tradeify