๐ชXETH - Synthetic ETH
A Synthetic token pegged to ETH
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. Imagine that you want to trade Gamestop stocks without holding the $GME asset itself.
Or, do you want to gain exposure to S&P500 index movements without having to hold the underlying basket of stocks? No problem.
What about gold and silver? Yes. How aboutโฆsomething more exotic like becoming a Bitcoin miner without owning any hardware but simply by holding the right synthetic asset.
Well, all this already exists, and it's the evolution for many asset classes that wish to gain exposure to the decentralized and tokenized world of cryptocurrencies.
The XETH synthetic token XETH is a Fractional-Algorithmic Synthetic Token pegged to the value of 1 ETH on BASE.
The protocol aims to maintain XETH tokenโs price stability, in other words the peg, by storing sufficient collateral in the time-locked smart contracts.
This collateral is used for redemptions, helping to maintain price stability. The Basetasm team are BASE Ecosystem users and Fantasm Finance supporters.
The XETH synthetic token explicitly gives ETH holders another great use case and a way to earn yield via additional rewards on top.
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