Tutorial
Guide to Get Started with using zkSynth. Learn how to mint synthetic assets and how to use them to generate yield.
Last updated
Guide to Get Started with using zkSynth. Learn how to mint synthetic assets and how to use them to generate yield.
Last updated
You can mint synthetic assets by depositing collateral into that specific market pool (Crypto, Forex Market, etc.). When you want to withdraw their collateral, simply burn the synthetic assets, and then you'll be able to get your collateral back to your wallet.
Select a market from which you want to mint Synthetic Assets For example, if you want fEURO select Forex Pool, if you want cETH select Crypto Pool
Deposit collateral of your choice that is supported in that pool (USDC or ETH or USDT)
Upon adding collateral, you will be able to mint synthetic assets from that pool.
Note: Debt is Variable. At the time of minting synthetic asset, you are allocated debt of dollar value share of the pool's total debt at the time of issuance. As the pool's total debt increases or decrease your share of debt will increase or decrease accordingly. This is a feature of synthetic assets that makes them so powerful
Make your own strategies to generate as much yield with your Synthetic Assets. Here's how you can do it:
1. Trade: High Risk High Reward
In order to make profit, you need to hold synthetics that move up ⬆️ relative to total pool's liquidity. And move according to your strategy, goal is to your minted assets' value to be greater than your debt share. Read more about Debt Share
🐻 Bearish on the market
If you are bearish on the crypto market, you can mint/swap to cUSD, a synthetic stablecoin that tracks the US dollar. By doing so, you are effectively betting against all other crypto assets, since cUSD will always be worth $1 regardless of market fluctuations.
🐂 Bullish on the market
If you are bullish on the crypto market, you can mint/swap to synthetic crypto assets, such as sETH, sBTC, or sLINK. By doing so, you are effectively betting against cUSD holders, since your synthetic assets will appreciate in value as the crypto market goes up.
🤷♂️ Not sure
If you are not sure which way the market is going, you can mint/swap to a synthetics in proportion to pool composition. For example, if the pool is 50% cETH and 50% cUSD, you can mint/swap to 50% sETH and 50% cUSD. This way, you are hedging your bets and will not lose money if the market goes up or down.
Keep a watch on your debt in violent market times. If your debt increases, you have to add more collateral or burn synths to repay.
2. Earn yield: Low Risk Low Reward
Supply in LP pools to earn trading fees (Coming Soon)
Lend your assets into margin to earn interest (Coming Soon)
LONG/SHORT using margin trading (Coming Soon)
