Forge

Forging Synthetic Assets

How to use the Forge ?

The synthetic assets issued by the entire system are all produced by users staking certain collateral. The initial collateral includes CRF, DAI，USDT，NEAR, AURORA, BTC and ETH, and the collateral rate depends on the variation of the collateral itself. We plan to refer to the collateral rate of other projects at the early stage of the project and set the rate between 150% and 800%. For example, if a user wants to mint synthetic assets worth $100, he/she needs to put $150 to $800 collaterals, depending on which collateral he/she uses.

The user’s collateralization ratio should be as high as possible than this prescribed ratio, that is, when the price of the collateral drops, the collateralization ratio may be insufficient. At this time, the user should replenish the collateral or return (destroy) a part of synthetic assets. The system stipulates that only users who are greater than or equal to the specified collateralization ratio will receive system rewards as an incentive. In the future, the collateral and collateral rate can be adjusted through community governance. When users stake collaterals and forge synthetic assets, corresponding debts are generated. When the user wants to unlock the collateral, he must repay the debt, that is, destroy the previously generated synthetic assets.

In order to encourage users to use CFR as collateral, users who stake CRF will earn a larger proportion of the system rewards. This will be explained in detail in the token economics section.

Assets synthesized by direct staking of collateral in the entire system can be fitted into five different categories: NFT fractions (NFTRaft), stablecoins (RaftStable), simple synthetic assets (Raft), synthetic bonds (BondRaft) and smart synthetic assets (UnivRaft).

● NFT fractions (NFTRaft)

NFTs are so expensive and have liquidity issues currently. Fragmentation is the way to solve all the problems. Any user who has NFTs will be able to mint NFT fractions and the system support both ERC721 and ERC1155.

● Stablecoins (RaftStable)

Stablecoins are a very important part of synthetic assets, such as rUSD and rEuro which can be used as denomination currency in the whole system as well as contract trading. Furthermore, stablecoins can also be used as collateral lending. Users can borrow stablecoins such as rUSD and exchange it into real world dollars.

● Simple synthetic assets (Raft)

Simple synthetic assets can be cryptocurrencies such as rBTC and rETH, stocks such as rAAPL, gold such as rXAU and any real world assets.

● Synthetic bonds (BondRaft)

Synthetic bonds are synthetic assets paying interest issued by the system.

● Smart synthetic assets (UnivRaft)

Smart synthetic assets means that users can issue any kind of a financial contract through this system. By this way, we can stimulate any financial derivatives and include the whole world’s assets.