FAQ: Synthetic assets

What is a synthetic asset?

A token that tracks the value of a real-world reference, an index, a rate, a price, a housing series, without holding the underlying. You hold the exposure directly, on-chain.

Does it hold the real asset?

No. There is no S&P 500 basket or barrel of oil behind tSPX or tBRENT. The token is backed by collateral and tracks the reference through the oracle.

What does "priceless" mean?

The contracts don't need a constant on-chain price. A reference value is only pulled in at settlement or when a position is disputed, which keeps the design simple and cheap to run. The dashboard shows an indicative price for context only.

What's the difference from an event-triggered synth?

A standard synth tracks a continuous series. An event-triggered synth is minted against a discrete event, and its collateral basket rebalances when that event resolves.

Who decides which synths exist?

Governance. Anyone can propose a reference with a credible oracle; token holders vote. See Approved synthetic assets.