TOKENS & ASSETS
Synthetic Asset
Definition
Synthetic assets are blockchain-based derivatives that track the price of real-world assets like stocks, commodities, or currencies without requiring ownership of the underlying asset.
Example
Example
Synthetix offers synthetic Tesla stock (sTSLA) that tracks Tesla's price, allowing DeFi users to gain exposure to traditional assets.
Risks to Consider
Risks
- Oracle manipulation
- Collateral liquidation
- Tracking errors
