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  1. fundamentals

Synth Wrap

Direct wraps between the underlying and a Kresko Asset

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Last updated 1 year ago

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 , which is called a Synth Wrap.

Similar to how the enables capital efficient entry point for stablecoins through , the synth wrap enables a capital efficient entry point for underlying assets with on-chain representations.

Use Cases

This enables accounts to directly trade with them using the and liquidators can perform without opening a separate position.

Examples

Simplest examples of this would be allowing Ether or Wrapped Ether to be directly converted into a Kresko Asset representing Ether.

Creating 1 krETH with 1 Wrapped Ether.

Fees

The wrapping is configurable with a separate fee percentage for both directions which is similar to the open and close fee in the ICDP.

Burning 1 krETH to receive the previously wrapped 1 Wrapped Ether.
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