Differences from Synthetix and Mirror Protocol

Published in

Coinmonks

3 min readApr 5, 2022

Why is the Universal Synthetics aimed at synthetics? Well, let’s say it is not just another project: the differences crucially lie in the “design” of synthetic assets and the collateral used, alongside the advantages of the UMA platform on which the project is based, that is ultimately creating competitive advantages for it.

*Comparing Universal Synthetics with other projects*

Product

In Synthetix and Mirror Protocol, synthetic tokens are digital analogues of currencies, shares of individual companies and ETFs, and other crypto assets, whereas Universal Synthetics produces composite synthetic digital assets that combine different instruments, both fiat and crypto, in one digital instrument:

A composite synthetic digital asset can be a simple combination of several stocks representing an index or a combination of heterogeneous assets such as stocks, bonds, ETFs, stock indexes and crypto-assets that, in fact, are an investment portfolio;
The price of a composite synthetic digital asset is tied to the price of real assets using the UMA’s Optimistic Oracle mechanism;
Universal Synthetic composite synthetic digital assets are built utilizing UMA financial contract templates. USDC stablecoins are used as collateral.

*Structure of a composite synthetic digital asset*

Collateral

Synthetix and Mirror Protocol use their own tokens as collateral for synthetic tokens issued: SNX (for Synthetix) and UST (for Mirror Protocol). Universal Synthetics uses USDC stablecoins as collateral.

Below is a comparison of the USDC stablecoin quotes (blue line on both charts) with the SNX quotes (orange line) and UST (purple line).

Obviously, using USDC as collateral allows the creation of a more sustainable synthetic asset that is not impacted by the ups and downs of collateral token quotes.

Thus, the differences between Universal Synthetics and other projects in the “design” of synthetic assets and the collateral used, as well as the advantages of the UMA platform on which the project is based, create competitive advantages over other projects and allow us to rely on the users’ attention.

Subscribe to stay tuned for all the news on our current and upcoming products.

The curated series of articled created via ManyStories

Join Coinmonks Telegram Channel and Youtube Channel learn about crypto trading and investing

Differences from Synthetix and Mirror Protocol

Product

Subscribe to stay tuned for all the news on our current and upcoming products.

Also, Read

Written by UNISX