Suggest a New Synth

Use this thread to suggest a Synth that we should add to Synthetix.

Please include a reason why your proposed Synth would be a valuable addition.

2 Likes

I’d like to suggest new synths (s and i) for:

  • Korean Won
  • Chinese Yuan/RMB

For two reasons:

  1. I would like some exposure to these currencies via the Exchange.
  2. I believe that this would lead to greater adoption of the Exchange and Synthetic Assets in Asia
1 Like

SwanDAI or a Staking Derivative are things I look forward too. I think to truly leverage the power of SNX, we need to create synths that just aren’t possible in any other paradigm.

Can you elaborate on this?

  1. Synth tracking the Emerging Market, e.g. Msci emerging markets index.
    Reason: personally would like exposure to the emerging market.

  2. Synth tracking US stock market (or blue-chip stocks).
    Reason: some members of the community, including myself, would like exposure to the US market.(but there may be regulatory risks as ABRA has to reach a settlement with the SEC).

  3. Synth that tracks a collection of shitcoins or Chinese coins (as in FTX).
    Reason: providing a decentralized alternative for investors who wants shitcoin/chinese project exposure.

I would like to suggest a few, here you go:
A. Precious Metals basket synth

  • Gold
  • Silver
  • Platinum
  • Palladium

Reasoning:

  1. Allowing people within crypto to gain access to price movement of the gamut of the most popular precious metals on the market.
  2. A unique way to gain access to a low beta market which would appeal to certain demographics.

B. Crypto-oracles basket synth

  • LINK
  • BAND
  • TRB

Reasoning:

  1. Just like with the DEFI synth, this synth will allow one to gain exposure to the crypto projects within the oracle space. Personally, I’m looking to build a core position in BAND but if this one gets through, I will simply buy the synth basket equivalent and be happy.
  2. Since LINK has been removed from the updated DEFI synth, it would be a good idea to include it in here as is more relevant.
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My sense is that it is easier for many people to measure their own portfolio value in terms of a “stable” store-of-value, and for most people that means their local fiat currency. Being able to trade into/out of KRW and RMB would help contextualize and localize their user experience.

It also seems like a matter of time before we start to see the proliferation of state-sponsored digital central bank coins. There should be a market for decentralized, censorship-resistant versions of these currencies.

A basket that has smart contract protocols, either one with ETH alternatives exclusively (ADA, Tezos, etc), or one with ETH and others. It would serve as a hedge against ETH not winning out in the long run due to delays or problems with ETH 2.0.

Simple Summary
Add sPOS/iPOS Index Synths that track an index of POS Blockchain tokens.

Motivation
The POS Blockchain ecosystem is getting lots of attention given the upcoming launch of ETH2, however there are quite already some very successful implementations of POS already live. Having a POS Blockchain Index Synth will allow traders to speculate on the value of these POS Blockchains directly via the Ethereum network. As well given that these tokens live on other blockchains not available in the Ethereum network, sPOS/iPOS will provide exposure to these assets without having to maintain other wallets and keys.
The current success of sDEFI/iDEFI & sCEX/iCEX demonstrate the value and demand for these type of tokens/indexes.
When ETH2 comes available there will be even more attention for this type of Index Synth

Specification
These Synths will be indexes implemented in much the same way as the sDEFI/iDEFI & sCEX/iCEX Synths.
The proposal is for this index is made up of the following assets: Cardano (ADA), EOS (EOS), Tezos (XTZ), Stellar (XLM), Tron (TRX), VeChain (VET), Cosmos (ATOM), NEO (NEO), Dash (DASH), Ontology (ONT), Algorand (ALGO), Qtum (QTUM) and Waves (WAVES)
Of course we’ll need to revisit when ETH2 becomes available.

Rationale
Additional Index Synths will add further utility to Synthetix.Exchange, allowing people to speculate on the value of the ecosystem that, by trading on sX, they’re clearly already participating in and can see some utility in.
These new Index Synth will also bring much needed exposure to other tokens currently not available in Ethereum

Test Cases
sDEFI/iDEFI & s/iCEX provides a clear example of how custom Synth indices can function successfully in the Synthetix protocol.

Implementation
This is the first proposal, looking forward to discuss via Discord if there should be a cap (20% max) on Cardano for example or less tokens.
Prices as of July 14th 2020
image

6 Likes

I like EM, could this be possible before full decentralization?

I would recommend staying away from listing any individual stocks (including blue-chip) to mitigate risk of SEC inquiry. It seems the better option is to add currencies, indexes (basket of coins like Defi/iDefi), metals and other crypto coins.

Also adding more indexes (or basket of coins) is a competitive advantage over other exchanges which we should really take advantage of because no one I know currently offers products like that to trade.

Hi @sbernarj, Please use information-rich responses in the future or your post will be deleted. Short answers with limited contribution to the conversation will be removed by a moderator.

Thank you for your participation in the forum.

1 Like

I’d like to add that some type of interest rate derivative would be an interesting addition to the ecosystem. My first thought is something related to eurodollar, euribor, fed funds, SOFR.

Rationale being:
(1) Outside of futures on traditional exchanges (or swaps if you’re ambitious), it’s hard to trade short term interest rate futures as a retail investor.

(2) The Eurodollar is one of the largest and most liquid futures contracts in existence

(3) Including interest rate derivatives may attract larger, more sophisticated investors who wish to create diversified portfolios that represent a wide range of asset classes. They could also utilize such tokens / contracts for hedging purposes or portfolio risk optimization.

(4) A type of derivative that isn’t currently represented on synthetix, increased diversity of asset classes. Has the potential to increase the sophistication of financial strategies employable via synths

(5) Could pave the way for supporting synths that represent other, longer dated securities such as treasuries, and even overnight rates such as 1-day Libor, Fed Funds, or SOFR.

(6) IMO the introduction of specialized synths such as these would clearly set synthetix apart from other players in the defi space

In addition to interest rate derivatives, support for commonly traded ETFs such as SPY, QQQ, DIA would be interesting, and highly popular. likewise with other forex pairs.

edit: an even crazier idea ~ compound or aave-related interest rate futures.

2 Likes

I agree with the ideas that jaypb has mentioned and I think currently (until stocks are available after DAO) novel derivatives and insurance or zero sum ideas seem a good use of the ‘limitless’ liquidity of the system. I think it’s largely pointless competing with centralized exchanges given the current constraints caused by gas fees and front running preventing the use of reasonable FOREX fees.

+100 to interest rate futures. Synthetix would benefit from the current expansion in stablecoin market cap and utilization. On the risk side, this might violate US regs on designated contract markets and eligible contract participants.

Aave, Compound, and Maker rate futures would probably get strong demand, but I’m not sure how they would be priced without an underlying term rates market.

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I really like this idea.
Is there a way we can also get staking rewards from the basket of tokens added to the sPOS/iPOS index? I just dont think is a way, but I thought I would ask anyway.

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Not possible. Then it would not be a index but more of a fund… We are not holding the assets directly, just following price.