Synth Wrap
Direct wraps between the underlying and a Kresko Asset
Last updated
Direct wraps between the underlying and a Kresko Asset
Last updated
This documentation is a work in progress!
Whenever an underlying asset has an reputable representation on-chain it can be enabled for direct wraps between the Kresko Asset, which is called a Synth Wrap.
Similar to how the vault enables capital efficient entry point for stablecoins through KISS, the synth wrap enables a capital efficient entry point for underlying assets with on-chain representations.
This enables accounts to directly trade with them using the SCDP and liquidators can perform liquidations without opening a separate ICDP position.
Simplest examples of this would be allowing Ether or Wrapped Ether to be directly converted into a Kresko Asset representing Ether.
The wrapping is configurable with a separate fee percentage for both directions which is similar to the open and close fee in the ICDP.
