A brief introduction of Symblox Open Finance protocol
What is Symblox
Symblox is a cross-chain synthetic asset issuance and derivatives trading protocol. Users can stake any token asset that’s supported by the protocol as collateral. Once staked, users can mint synthetic assets that can then be traded on the protocol’s exchange. In turn, the protocol rewards users with its governance token SYX.
Symblox is not the first project working on derivatives trading. Many DeFi projects have done tremendous pioneering work in this field. What Symblox believes it can bring to the table is as follows:
More Assets and Liquidity
In order to increase liquidity for the derivative assets market, it is crucial for Symblox to support multiple assets as collateral. This is also why it’s important for Symblox to be able to cross multiple blockchains. Symblox’s decision to run on Velas blockchain is because Velas has implemented support for the cross-chain transfer of crypto assets such as BTC, ETH, ZCash etc. Symblox can support billions of dollars’ worth of the most liquid assets and can also extend decentralized derivative trading to the users of those blockchains immediately through cross-chain protocols.
Safe with Better UX
As more and more projects are launched on the Ethereum network, transaction fees increase exponentially. It currently cost more than the fees charged by traditional financial institutions for users to move thousands of dollars. Users also have to compete to get their transactions through on the Ethereum network. This is why Symblox chose to work on multiple blockchains; it can leverage the lower fees and faster transaction speeds of new blockchain technologies, such as Velas, while still maintaining a high level of security for all the users’ assets.
Fully community driven
Symblox is a community driven project. There’s no VC backing or pre-mining of the Symblox token. Rather, the project will be driven by all Symblox token holders through voting. After the bootstrapping phase, Symblox governance DAO will be deployed and will take charge of the protocol. Any token holder can issue a proposal and vote on how the project will be directed in the future.
There will be a total of 100 million Symblox (SYX) tokens with a yearly minting depreciation of 15%. Ten percent of the total supply will be rewarded to users who contribute to the liquidity pool during the bootstrapping phase. Forty-five percent will be rewarded to synthetic asset minters with another 45% rewarded to traders on the protocol. Of all the tokens minted, 10% will go towards the dev fund for improvement and maintenance of the protocol.
Ultimately, the success of any defi project is dependent on the community. Symblox hopes the open-community and voting structure of the protocol will attract enthusiast who can help improve the protocol with novel ideas and simplify the complexities of decentralized finance for the mainstream market.