Synthetics

https://www.interestprotocol.com/dapp/synthetics-market

Intro

Synthetics are ERC20 tokens that track the price of an underlying asset. Users can mint synthetics by providing collateral on-chain. Minters of synthetics are required to maintain enough collateral to cover their position. The LTV of the synthetic determines the amount of collateral required. E.g., if we assume that the price of one Tesla share is 180 USD and iTSLA has an LTV of 20%, a user would have to put 800 USD (100/20 * 180) of collateral to create one iTSLA. If the share price of Tesla were to increase, the user would have to provide more collateral to avoid liquidation.
There are no additional fees during liquidations. The debtor only loses the transfer fee rewards.

Guide

Interface Description

  1. 1.
    When turned on, the interface will only display the synthetic that the user has created.
  2. 2.
    It allows the user to sort the synthetic tokens by the desired argument.
  3. 3.
    It allows the user to search a synthetic token by name, symbol, or address.
  4. 4.
    The large icon represents the underlying asset the synthetic token is tracking. The small icon represents the collateral token used to create the synthetic token.
  5. 5.
    The symbol of the synthetic token. It is composed of an I for Interest Protocol followed by the symbol of the underlying asset.
  6. 6.
    The current price of the underlying asset.
  7. 7.
    The total amount of collateral deposited in the synthetic token is usually referred to as TVL.
  8. 8.
    The number of synthetic tokens the user has created.
  9. 9.
    The LTV of the synthetic token.
  10. 10.
    The transfer fee charged on transfers.
  11. 11.
    The oracle provider for the synthetic token.
Users can enter a synthetic market page by clicking in one of the cards. Below we are going to go over it.
The first component of the page allows the user to navigate between two modes.
  • The mint mode allows the user to deposit collateral and mint synthetic tokens
  • The burn mode allows the user to burn synthetic tokens and remove collateral
  1. 1.
    The current collateral token balance on the user's wallet.
  2. 2.
    A button to input all the balance as collateral
  3. 3.
    The current amount of desired collateral to deposit
  4. 4.
    The maximum number of synthetic tokens the user can mint
  5. 5.
    A button to input the maximum number of synthetic tokens the user can mint
  6. 6.
    The number of synthetic tokens the user wishes to mint
  7. 7.
    It allows the user to select a TVL position for the whole position
  8. 8.
    It shows the total amount of synthetic tokens the user has minted and intends to mint.
  9. 9.
    The estimated liquidation price of the synthetic token is based on the current and intended deposit and mint amount.
  10. 10.
    The position's health. If this value hits 0%, the user is at risk of liquidation.
  11. 11.
    This button initiates the transaction based on the input values.
  1. 1.
    It represents the current risk of the user's position. If the bar hits 100%, the user is at risk of liquidation.
  2. 2.
    The total amount of collateral tokens deposited in the contract.
  3. 3.
    The total amount of synthetic tokens minted by the user.
  4. 4.
    The total amount of synthetic tokens minted by the user is in USD.
  5. 5.
    The expected liquidation price. If the synthetic token reaches this price and the user deposit and mint amount remain the same, he will be liquidated.
  6. 6.
    The number of synthetic tokens the user is allowed to mint. Please note that minting the entire amount will put you at a very high risk.
  7. 7.
    The number of collateral tokens the user can withdraw. Please note that if a user withdraws all withdrawable collateral without burning the created synthetic tokens first, he will be at a very high risk.
  8. 8.
    The current price of the synthetic token in collateral.
  1. 1.
    The loan-to-value ratio associated with this synthetic token
  2. 2.
    The liquidation fee of this synthetic token.
  3. 3.
    The pending rewards the user has accrued in synthetic tokens.
  4. 4.
    The value of the pending rewards in collateral.
  5. 5.
    This button allows the user to redeem his rewards.