Announcing DeltaOne — Truly decentralized Synthetic Assets

Hrishikesh Huilgolkar

Published in

Razor Network

3 min readNov 6, 2019

We are proud to announce DeltaOne, the first application utilizing the decentralized oracle network: Razor Network.

What is it?

Using DeltaOne, you can create a “Synthetic Asset” based on any asset in the world, such as gold, real estate, stocks, fiat currencies, cryptocurrencies, etc. The synthetic asset tracks the real-world asset hence can be used to replicate payoffs of trading that asset. The App and the oracle it relies on is truly decentralized.

How does it work?

Synths rely on Razor Network for a list of data feeds for different assets and their prices. It is assumed the price of the assets is in USD.

You can add your data feeds using RazorScan.

You can then create a Collateralized Debt Position (CDP) by locking in your ether. The application will then mint Synthetic Assets with a 500% Collateral ratio and send them in the form of ERC20 tokens to your wallet. Here the collateral ratio is the ratio of the value of the collateral and the value of debt.

The CDPs will be liquidated if the Collateral Ratio falls below 200%, and you will lose your entire collateral! So make sure your CDPs are always well collateralized.

How can someone invest or short an asset?

How to use the synthetic assets to replicate real-world payoffs

If you think the value of an asset will go down, you can mint synthetic tokens based on that asset, and sell them to someone. This is called opening a short position. You will need to buy back the tokens at a later time to be able to close the CDP and get your collateral back.

If you think the value of an asset will go up, you can buy the synthetic tokens from someone. This is called opening a long position. You can then sell the tokens to someone at a later date to book a profit.

How do I use it?

Demo / tutorial video

Use an Ethereum compatible browser and set the network to Göerli testnet. Here’s a guide on how to do that.
Open the DeltaOne App.
You will need some Görli testnet ether. Click the button to get some.
Select an asset from the dropdown.
Enter how many ether you would like to use as a collateral and click “Mint”.
A new CDP will be created and you will see the information about your CDP.
You can transfer your tokens to anyone from the app using the “Transfer” tab.
You can add collateral or mint more tokens as well as using relevant tabs.
When you want to close the CDP and get back your collateral, use the “Close CDP” action.

How are different assets identified?

The app creates a unique cryptographic hash from the URL and “selector” from the data feed. This is called the “Asset ID”. This is used to uniquely identify each data feed. A new ERC20 contract is then deployed for each asset ID if it is not already deployed.