THORChain synthetics provide benefits for Traders, Liquidity Providers, Users, and other IBC chains.
Super low fees compared to L1 trading
Transaction fees = 0,02 $RUNE ($0,25)
Swapping fees = 0,04 $RUNE ($0,5)
The average time to execute a trade = 5 sec
Low fees and fast trades are the main reasons why most of the trading and arbitraging will move to using synthetics & THORChain. Trading will be more efficient due to having more liquidity (deeper pools) with lower slippage.
The transfer of traders to THORChain and synthetics will cause a much higher volume. And much higher volume will lead to more trading fees collected, which will lead to higher yields, even for native liquidity providers. Because the yield is split between native pools and synthetic vaults.
DeFi made on THORChain.
Services that will be provided:
Interest bearing Synths
Providing single-sided liquidity into THORChain and gaining yield on the provided assets.
It is done by locking synthetic assets into vaults and gaining yield from the collected trading fees.
Lending & Borrowing
Using synthetics as collateral for lending & borrowing. With the feature of the debt getting auto-payed.
Composites = Crypto ETFs
Creating funds of the top cryptocurrencies in which you can invest.
Offering diversification and enabling ultimate stablecoins.
Fixed Saving Interest
Earning a fixed interest on your savings.
Synths will be used on other IBC integrated chains to access more financial services.