Creating new synths
Minting and Burning of Synthetic Assets is handled by it's Debt Pool.


Minting synthetic assets is equivalent to borrowing and allows users to create new synthetic tokens. Anyone can issue synthetic assets through the asset's debt pool by providing collateral of a higher value. This ensures that the LTV (Loan to Value) ratio of the account position is always greater than the safe collateralization ratio (200-400%).

Debt Share

At the time of issuance, a debt share is issued to the minter based on the total pool debt. This debt share represents the user's portion of the overall debt associated with the synthetic assets in the pool. After issuance, users can freely trade the synthetic asset in any market. The prices for synthetic assets are secured by ChainLink's decentralized oracle network, ensuring the integrity of the prices.


Minting fee ranging from 0.05% to 0.15%, is charged while issuing synthetic assets, which is used to the burn synths that leads to overall reduced pool debt. Issuance fee varies for different debt pools.


To repay the debt, users can burn a synth and this allows users to redeem their collateral.


In the event that a user's collateralization ratio falls below 100%, their account will be liquidated. This is a safety measure to ensure that the overall debt in the pool remains manageable and that synthetic assets are backed by sufficient collateral.