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Capital Efficiency
At its core
Capital efficiency is a key feature of Synthex, that shall allow users to collateralize various assets in order to issue synths or earn interest on their holdings.
One way Synthex achieves capital efficiency is through the use of staked and deposited assets, such as Lido's stETH, Aave's aETH, and Compound's cETH, as collateral. This allows users to put their existing assets to work, earning interest or borrowing against them without having to liquidate their positions.
Another way Synthex achieves capital efficiency is through the use of liquidity provider (LP) tokens from Uniswap as collateral. These tokens represent a user's share of a pool of assets on the Uniswap exchange, and can be used to borrow other assets or earn interest.
Additionally, synths (synthetic assets) created on Synthex can be used to provide liquidity into LP pools on Uniswap and other decentralized exchanges, further increasing capital efficiency.
Lastly, synths created on Synthex also enable users to borrow more assets. This allows users to leverage their existing assets to gain exposure to other markets or to increase their purchasing power. Overall, Synthex's utilization of various assets as collateral, the use of LP tokens and synths as liquidity providers and the ability to borrow more assets all contribute to the platform's high capital efficiency.
Last modified 2mo ago