As 2021 draws to a close, the premiere lineup in the DeFi landscape consists mostly of Synthetic Equipment Platforms (SAP). SAP is any platform that allows users to create synthetics, derivatives whose values are related to existing assets in real time. As long as prophecy can provide a reliable source of price, synthetics can represent any asset in the world and assume its price – whether it is stocks, commodities or crypto assets.
As such, SAPs are finally bridging the gap between emerging DeFi platforms and legacy funding, allowing investors to bet on any asset anywhere, all from the comfortable confines of their favorite blockchain ecosystem. Decentralized and working on the first layer of Ethereum, SAPs seem to be the next big catalyst for cryptocurrency growth. However, unlike healthy money and verifiable works of art, in the world of collateral lending, decentralization and secure ownership make up only half of the equation.
Alex Shipp is a professional writer and strategist in the field of digital assets with experience in traditional finance and economics, as well as in new areas of decentralized system architecture, tokenomics, blockchain and digital assets. Alex has been professionally involved in the digital asset space since 2017 and currently serves as an Offshift strategist, writer, editor and strategist for the Elastos Foundation and an ecosystem representative at DAO Cyber Republic.
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