2025-08-30
Asset types and investment options in the booming decentralized finance (DeFi) ecosystem. Synthetic assets, as innovative products in the DeFi field, map the value of real-world or on-chain assets to the cryptocurrency field through blockchain technology, providing users with unprecedented investment flexibility. So, what exactly are DeFi synthetic assets? How are they generated and operated? And what role do they play in practical applications?
DeFi synthetic assets are digital assets based on blockchain publishing, whose value is linked to real-world or other on-chain assets (such as stocks, commodities, fiat currencies, etc.). Unlike traditional cryptocurrencies, synthetic assets do not directly represent ownership of actual assets, but map the underlying asset's price, income, and other attributes to the blockchain through technologies such as smart contracts and oracles. For example, the value of synthetic US dollars (sUSD) is anchored to the US dollar, and its price fluctuates with the market value of the US dollar; synthetic gold (sGold) tracks the market price of gold. This asset form breaks the geographical and access restrictions of traditional Financial Marekt, allowing users to easily invest in various assets in the DeFi ecosystem.
The generation of synthetic assets relies on the collaborative operation of technologies such as blockchain, smart contracts, and oracles. Firstly, users need to mortgage a certain amount of cryptocurrency as a margin on a DeFi platform that supports the publication of synthetic assets. The smart contract generates a corresponding amount of synthetic assets based on the value of the mortgaged assets and the set mortgage rate. To ensure that the value of the synthetic assets accurately reflects the underlying assets, the platform will introduce oracles to obtain off-chain market data. As a bridge connecting the real world and the blockchain, the oracle transmits real-time price information of the underlying assets to the smart contract, which adjusts the price of the synthetic assets accordingly. If the value of the mortgaged assets falls, the smart contract will trigger a liquidation mechanism to ensure the stability of the synthetic assets. HashKey Exchange pays close attention to the generation mechanism of synthetic assets when exploring DeFi innovative businesses, providing users with more secure and reliable investment references.
Synthetic assets have a wide range of applications in the DeFi field. In the investment field, users can invest in assets such as US stocks and gold on DeFi platforms without going through traditional stock exchanges, reducing investment barriers. In decentralized trading, synthetic assets serve as trading pairs, providing users with more diversified trading options. In addition, synthetic assets can also be used for hedging risks, such as holding synthetic US dollars to avoid price fluctuations in the cryptocurrency market. HashKey Exchange Following the development trend of DeFi, actively exploring the application potential of synthetic assets, and providing users with rich investment products and services. However, when participating in synthetic asset trading, users need to pay attention to potential issues such as collateral asset liquidation risks and oracle data errors, and plan investment strategies reasonably.
What is HashKey Exchange?
HashKey Exchange is one of the first regulated cryptocurrency exchanges in Hong Kong to obtain a license from the Securities and Futures Commission (SFC). It supports fiat currency deposits and trading in Hong Kong dollars (HKD) and US dollars (USD), offering users spot trading services for mainstream digital assets including Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). The platform also provides OTC (over-the-counter) services to meet the needs of large-value asset transactions and fiat currency conversion, ensuring more flexible and private trading. To cater to the asset allocation needs of different investors, HashKey has launched the HashKey Earn channel, offering users fixed-term and demand financial products to achieve stable appreciation of crypto assets. The platform holds ISO 27001 and 27701 security certifications, employs a 98% cold wallet storage mechanism, and incorporates security measures such as two-factor authentication to provide users with a stable and reliable trading environment.
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