Kwenta, a decentralized application that leverages synthetic tokens have launched several synths tokens for stocks but the recent gas fee/prices could make trading them more costly than buying the real stock or asset.
In a recent blog post, Kwenta protocol announced the various synths that trail the stock prices of the five top tech organizations known as FAANG. FAANG is an acronym for Facebook, Amazon, Apple, Netflix, and Google. While Tesla is available, it has the Plan of adding Coinbase and Microsoft soon
Synthetic Digital assets aim to give users the opportunity to own different assets without having to own them in the real world. They are a symbolized form of real-world assets like currency, real estate, and stocks. These asset prices follow the original asset price and allow investors to have more exposure regarding the asset. It has an added advantage of trading them without having to face regulatory bodies associated with the United States exchanges.
Decentralized Finance protocols made synths popular by allowing clients to create their artificial assets. FAANG synths that have just been listed can be used to provide liquidity in liquidity pools.
Etherscan is currently reporting three-figure gas prices in USD for complex Decentralized Finance activities equivalent to exchanging tokens on Uniswap. This might make the investment in the newly listed synths token more expensive than buying the natural asset and paying charges on them.
The Mirror Protocol built on Terra blockchain also allows for the creation of Fungible assets that trail the price of the real asset including FAANG synths.
Tokenized stocks were accessible on the FTX derivatives at first, but can now be traded on several platforms including Binance. However, these tokens allow shares to be traded in Crypto Decentralized Finance space thereby developing the DeFi aspect of the industry.
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