Symblox is working on creating a global-scale cross-chain synthetic asset platform, it needs a blockchain platform simultaneously providing high scalability, low cost and easy interoperability.
By Julia Sakovich
Updated
3 mins read
Symblox has revealed that it will be building on the Velas artificial intelligence-powered blockchain platform. The solution it is developing will feature attractive protocol mining opportunities via the SYX governance and utility token. Symblox is a defi project building a decentralized cross-chain synthetic assets issuance and trading protocol.
Synthetic assets can be broadly defined as all kinds of financial instruments that represent other underlying assets in one way or another. These assets represent a lion’s share of the global financial markets, dwarfing the trading of equities. Examples of synthetic assets in the crypto space include stablecoins, crypto derivatives and security tokens, among others.
The ultimate goal of Symblox is to use blockchain and smart contracts to greatly expand the reach of defi and let users worldwide readily obtain exposure to a wide variety of real-world assets through their synthetic aliases in a permissionless manner.
The Symblox protocol works by enabling users to deposit the underlying assets into the reserve pool on top of which synthetic assets such as synthetic Bitcoin (syBTC) can be issued, or “minted”. The platform will also include its own swap decentralized exchange (swap DEX).
Symblox users will be eligible for rewards for participating in the protocol payable in Symblox’s native SYX token. Both the provision of liquidity to the reserve pool, and the minting of synthetic assets, and even the trading via Symblox will bring users yield. SYX is also the protocol’s governance and utility token, which means that its holders can initiate and participate in governance votes and earn a share of all fees regularly generated by the protocol.
As Symblox is working on creating a global-scale cross-chain synthetic asset platform, it needs a blockchain platform simultaneously providing high scalability, low cost and easy interoperability. With these requirements in mind, the Symblox team has deemed the Velas blockchain to be the best solution for its needs.
Velas was founded in 2019 in Switzerland by Alex Alexandrov. It is a blockchain platform that uses delegated proof of stake (dPoS) enhanced by artificial intelligence (AI) for achieving consensus and has been assisted with its efforts in AI integration by Korean company Mind AI. Velas claims that its design results in “a self-learning and constantly evolving blockchain which regulates itself according to the amount of various network conditions, traffic, load etc.” According to the platform’s blue paper, this implies that the underlying AI chooses the stakers and block producers and constantly adjusts the crucial network parameters like the block formation timing. This purportedly optimizes the use of the network’s resources and enables it to achieve high scalability at a very low cost.
In addition to an innovative approach to consensus, Velas strives to help other blockchain platforms and applications built on top of them achieve interoperability. This is done by means of Velas cross-chain bridges. Velas’s own VLX token will also be usable on Symblox for generating liquidity rewards.
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Julia is an experienced content writer. She works with various topics and business domains, including but not limited to blockchain, cryptocurrencies, AI, and software development. Her articles are regularly featured on reputable news websites and IT business portals. Currently, Julia is the Editor-in-Chief at Coinspeaker.
