A system of interacting tokens provides the user with a balance of risk and profitability, as well as with the guarantee that management decisions will be made solely in the interests of the long-term development of the project and the protection from speculative attacks.
The tokens operated in the Universal Synthetics include the following five types: synthetic tokens, stablecoins, DEX liquidity tokens, reward tokens and governance tokens:
- uSPAC10 (also soon: uSPAC50, uSPAC_EV, etc) is presented by means of synthetic tokens, that are tied to the price of exchange assets and indexes.
Synthetics are collateral-backed tokens whose value fluctuates depending on the tokens’ reference index. They combine features of betting markets, futures markets, and collateralized loans.
- USDC or stablecoin is utilized either as collateral for the issuance of synthetic assets or for replenishing DEX liquidity pools. The user should have a sufficient amount of USDC in his wallet, namely 1.5 times the cost of the issued synthetic assets, plus an amount equal to the value of the tokens placed in the liquidity pool.
- LP or liquidity tokens generally confirm the user’s share in the DEX liquidity pool. In order to obtain liquidity tokens, the user should put liquidity in the DEX liquidity pools for synthetic tokens or UNISX tokens.
They are required to receive the commission for exchanging synthetic tokens or UNISX tokens through DEX liquidity pools or can be placed in the stake to receive rewards in UNISX tokens.
- UNISX, this reward token is used to motivate project users. One can receive UNISX tokens as a reward for performing the following actions: issuance of synthetic assets; staking of liquidity tokens; staking of UNISX reward tokens.
- xUSX or the governance token is mainly used for the release of synthetic assets, in voting on the development and management of the project and receiving cashback on commissions for operations on DEX performed by the owner of xUSX. To receive xUSX, it is necessary to place UNISX tokens in the stake.
Besides, the user needs to have a certain amount of Ethereum required to perform transactions (i.e. the exact amount of Etherem depends on the gas price at the transaction time).
The Universal Synthetics uses its own UNISX reward token, whose function is to motivate liquidity providers. The issue of a synthetic token means for the user to replace low-volatile and low-yield stablecoins with a more profitable and volatile synthetic digital asset. Therefore, the project needs a tool that reimburses the increasing risk and encourages the user to raise the amount of liquidity provided.
A crucial characteristic of the Universal Synthetic is that the reward and management functions are divided between different tokens. It has been done in order to prompt users to stay in the project longer. Thus, the right to vote is not given to any user who has released synthetics or purchased reward tokens on DEX, but only to the players with a long-standing interest, who put reward tokens in a stake and receive xUSX governance tokens for this.
Thereby, the Universal Synthetics project engages with an advanced system of interacting tokens in order to ensure a balance of risk and profitability for the user, as well as to guarantee users that management decisions are made only in the interests of the long-term development of the project and are protected from speculative attacks.
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