Synthetic Tokens Overview
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Synthetic tokens are a powerful tool for providing exposure to various assets, ranging from traditional commodities to crypto assets, without actually owning them. These tokens are represented as ciTICKER, where TICKER represents the specific asset or basket of assets. This Gitbook page will explain the different types of synthetic tokens, their underlying strategies, and how they function within our ecosystem.
1. ciBOLD – A Dynamic Basket of BTC and XAU
ciBOLD is a synthetic token that dynamically allocates its value between BTC (Bitcoin) and XAU (Gold) based on price fluctuations over time.
Initial Allocation: The initial allocation is set to 60% BTC and 40% XAU.
Monthly Adjustments: Every month, the allocation is adjusted if the price of BTC or XAU has varied by more than 25% from the previous month's prices. This allows ciBOLD to adjust its exposure based on market conditions:
BTC Price Increase: If BTC increases by more than 25% compared to the previous month, 10% of the BTC allocation will be moved to XAU, resulting in a 50% BTC - 50% XAU allocation.
BTC Price Decrease: If BTC decreases by more than 25% compared to the previous month, 10% will be added to the BTC allocation, increasing it to 70% BTC - 30% XAU.
Objective: This strategy is designed to protect from potential market corrections. If an asset increases dramatically, the allocation shifts to reduce exposure, and if it decreases dramatically, the allocation increases to capture potential upside.
User Interaction: The ciBOLD token's allocation is updated monthly by NFTNodes users through the updateBOLD function. This means the token's allocation can be easily managed by the community.
2. ciMUSK – A Basket of Elon Musk's Public Investment Preferences
ciMUSK is a synthetic token that represents a basket of assets publicly associated with Elon Musk's investment preferences. The token's composition is as follows:
50% Tesla (TSLA)
25% Bitcoin (BTC)
15% Dogecoin (DOGE)
10% Ethereum (ETH)
This token allows users to gain exposure to assets tied to Musk's personal or business interests, primarily Tesla, Dogecoin, and Bitcoin, alongside a growing interest in Ethereum.
3. ciPRIV – A Basket of Privacy Coins
ciPRIV is a synthetic token that represents a basket of privacy-focused cryptocurrencies, offering users exposure to the growing privacy coin market:
40% Monero (XMR)
30% Zcash (ZCASH)
20% Dash (DASH)
10% Litecoin (LTC)
These coins focus on providing private, secure transactions, and this basket allows users to gain exposure to them collectively.
4. ciSDR – Mimicking the SDR Global Currency
ciSDR is a synthetic token designed to mimic the price of the SDR (Special Drawing Rights), a global currency created by the International Monetary Fund (IMF). It represents a basket of the world’s most traded fiat currencies, including:
USD (US Dollar)
EUR (Euro)
JPY (Japanese Yen)
GBP (British Pound)
The allocation of these currencies is updated manually based on real-world SDR weights, and the price is designed to track the SDR's value over time.
5. Other Tokens
In addition to the above, we have other synthetic tokens such as:
ciDPI – A decentralized finance (DeFi) index.
ciTSLA – A synthetic token mimicking the performance of Tesla’s stock price.
ciMSFT – A synthetic token mimicking the performance of Microsoft's stock price.
ciAAPL – A synthetic token mimicking the performance of Apple’s stock price.
ciSPY - A synthetic token mimicking the performance of S&P 500 index price
The contract is designed to easily support the addition of new synthetic tokens in the future. New tokens can be deployed by adding new price feeds from Chainlink, making the system highly scalable.
Minting: When minting synthetic tokens, a 1% fee is applied. This fee is used to buy CRANNI tokens automatically, ensuring that the ecosystem supports the token's value and demand. This mechanism helps maintain the health of the CRANNI token while providing a reward for liquidity providers and holders.
Burning: When burning synthetic tokens, a 1% fee is applied. The fee is dynamic and depends on the overcollateralization ratio of the contract. This is a risk management strategy designed to ensure that the synthetic token’s collateral remains healthy and the system remains solvent.
The burn fee will increase as the overcollateralization ratio decreases, and it will adjust based on the contract’s monthly evaluation of the collateral's health to a max of 10%.
The system is designed to be flexible and easily expandable. New synthetic tokens can be added by deploying new contracts and configuring their corresponding price feeds from Chainlink. This allows for rapid expansion of the token ecosystem, enabling exposure to new and emerging assets across multiple sectors, including:
Forex: Currencies from around the world.
Commodities: Assets like oil, gold, and other materials.
Crypto: Popular cryptocurrencies such as Bitcoin, Ethereum, and more.
Equities: Synthetic tokens for global equities like TSLA, MSFT, AAPL, and others.
The synthetic tokens ecosystem offers an innovative way to access diversified exposure to a wide range of assets. Whether you are looking to gain exposure to traditional commodities like gold, crypto assets like Bitcoin, or even the investment preferences of figures like Elon Musk, there’s a synthetic token available for you. By integrating these assets into a decentralized system, we allow users to participate in the global financial markets without holding the actual underlying assets.
With the ability to expand the ecosystem and adjust strategies based on market conditions, the ciTICKER tokens provide a dynamic, scalable, and user-driven platform for creating synthetic assets.
