As we know 2021 would be the year of DeFi in crypto space after the ICO run of 2017-18. There are many huge opportunities in this space everyday new projects are coming with something unique features. As blockchain has revolutionized trading and mobility of assets. Yet, traditional markets are not been able to adopt this technology. DeFi projects are bridging the gap between traditional market with blockchain. In this blog we will compare the one of the largest Defi Project “Synthetix” with more than $180 million worth SNX tokens locked up in the protocol with newest entry in the block “OpenDeFi” by Oropocket.
Synthetix: Synthetix is a protocol that enables the issuance of synthetic assets on the Ethereum blockchain. Synthetix supports synthetic commodities like gold and silver, synthetic cryptocurrencies, synthetic inverse cryptocurrencies, synthetic cryptocurrency indexes, and synthetic fiat currencies. The platform brings non-blockchain-based asset exposure to the crypto ecosystem, thus creating a more mature financial market.
OpenDeFi: Allow users to get exposure to various real-world asset classes in an open & transparent manner to empower users to become financially independent. With OpenDeFi users would be able to Instant exchange between various asset classes without any liquidity barriers.
How are they same
Both OpenDeFi and Synthetix were aggressively working on asset expansion from metals to real world assets like stocks, ETF, etc. Apart from adding more assets, both of them are providing staking of their respective token “SYNTHS” & “ORO” which are the inherent governance tokens of the respective ecosystem.
How are they different
Synthetic assets available over Synthetix which is ERC20 tokens are known as “SYNTHS”. For example. While you invest in Gold and Silver over Oropocket, which is the front-end for OpenDeFi ecosystem, which is tokenized form of assets backed by real assets known as XTZGold & XTZSilver. If you hold XTZGold & XTZSilver means that you own the underlying gold/silver that Oropocket holds, which is backed by Real Gold/Silver, whereas Synthetix’s sXAU means that you do not own the underlying asset – you merely have exposure to the price of gold.
OpenDeFi: OpenDeFi is a seamless banking experience built on assets. The assets available on OroPocket are 100% insured, backed by physical assets, and audited every day by third parties and insured as well. Oropocket is also coming up with an asset-backed debit card with which you can spend your holdings in real-time over online/offline or even withdraw cash from a nearby ATM.
Synthetix: Synthetix provides you exposure to a wide array of assets from crypto to other real-world assets stocks, ETF, metals, etc., in a decentralized way, enabling users to participate in the Defi ecosystem without holding the real assets.
With these DeFi protocols users would be able to enjoy tons of financial services which will built on top of that with features like earn rental on their assets with yield farming which is operational 24X7X365, instant trade, hedging with very low fees as compared to traditional market. Once the users would be able to trade stocks like Apple or Tesla on these platforms, than that would be a ultimate game changer in 2021, which will bring more adoption in the DeFi space.