THORChain synthetics are derivatives of cryptocurrencies (like Bitcoin or Ethereum) which always keep the same price as the selected coin. They run on THORChain, and they have the same attributes as the THORChain native coin $RUNE.
Brokkr Finance did a good job explaining the use-cases for synths:
The Main Use Cases
- Cheap & Fast Crypto Trading
- Enhanced Investing
- Self-repaying Loans
- Investment Diversification with Crypto ETFs
- Gaining Interest on $RUNE
- Using THORChain Assets in Cosmos Ecosystem
Read the following article for more details — https://brokkrfinance.medium.com/the-essential-guide-to-thorchain-synthetics-d5fd3437b905
# Observations
In this analysis, I’m looking at the net daily synth amounts that have been minted. A negative value on the below charts means that more synths were burnt that day than minted. Now, let’s look at the data.
By showcasing each asset on its own chart, we can see the differences between them much more clearly. Here are the patterns we can see:
- The most popular coins drive the most volume for synths. These are BTCB/BTC, BUSD, ETH, USDC and UST.
- Surprisingly, LUNA and BNB have not driven much volume 🤔
Looking at the daily amounts per chain, we can see that:
- ETH has driven significant volume in excess of $1M for both mints and burns.
- It’s likely that the bots are finding great arbitrage opportunities involving ETH which is why we see peaks for both mints and burns.
# Conclusion
Synths represent an exciting new space for Thorchain has expanded into. The upcoming ThorFi will be built on the backs of Synths. Almost 2 months into launch, we’re seeing adoption for the largest coins in the crypto market. ETH particularly seems to be really popular with large amounts of mints and burns on various days.
