Introduction

Synthetic Assets play an important role in Thorchain Synths. There are certain sets of Equations and formulas to find the Synths.THORChain synthetics are unusual in that they are backed 50 percent by their own asset, with the remaining 50 percent given by RUNE. This is accomplished by collateralizing the instrument with pool ownership, which provides always-on liquidity and price.

Formula

Methodology

The Dashboard attempts to answer the synth_utilization of each pool in the thorchain Blockchain over time by accessing the rune deposited and the asset deposited from block_pool_balances and the rest of the values necessary for the calculation of the Synth Amount is obtained from pool_block_statistics of the on-chain data.

The total synths that are utilized in the whole thorchain ecosystem are accounted to see the pool which had made the maximum synth utilization and it is seen that BTC-BTC Pool had made the maximum utilisation.

The chart here shows the synth that is utilized by all the pools of the thorchain ecosystem over the chosen period of time. Over the chosen period of time, the availability of data is also less so the needed data here may be available only till October 2021.

Conclusion

The Synth Utilized per each pool is accounted for a chosen period of time. Another significant usage of thorchain Synth is When trading asset to synth, synth to the asset, or synth to synth, THORChain synths are also cheaper to trade than layer-1 assets, with a 50% savings in swap fees. However, its key selling feature may be an easier and more profitable technique to yield agriculture. Reference: https://cointelegraph.com/news/rune-rally-a-closer-look-at-thorchain-s-new-synthetic-assets