The barter system, where you trade your cow for someone else’s grain, for example, is probably older than you think. It has its roots dating back to 6000 BC. C., when the Mesopotamian tribes made exchanges with other groups for the first time.

Those sharing methods worked long before things like the internet or decentralized technology existed. Trade was necessary not because the commodities had financial value or even industrial utility, but because they were necessary for survival. Back then, societies weren’t as concerned with gold or silver as they were with grain, milk, and beans.

Today, even though society lives in an age where artificial intelligence, automation, blockchain technology, and decentralization will make the means of exchange much more democratic and private than ever before, commodities still derive their value of the same things.

Agricultural goods provide us with a means of nourishment and survival. Energy in the form of oil, natural gas, etc. It allows us to keep the lights on and keep the economy moving, and precious metals give us industrial utility and the ability to hedge against inflation.

Here’s the thing. The above products are not expendable. They are not so easy to negotiate. That means that no matter how valuable they are, some of that value is absorbed into old world value chains. Therefore, it is out of the hands of the common individual.

This is why Comdex is launching a decentralized exchange (DEX) for synthetic assets. So that value can be unlocked and participants from all over the world can benefit from said unlock event.

What are synthetic assets?

In blockchain, a synthetic asset is a tokenized version of another asset, whether the latter is tangible or intangible. In the case of commodities, the blockchain can be used to tokenize physical assets as well as their financial representations, be it oil, gold, or silver. Comdex operates a DEX listing of synthetic assets representing all kinds of commodities.

The benefits of synthetic assets are enormous, allowing users to trade the real value of a commodity without the complexities inherent in owning the non-expendable asset itself.

Comdex alleviates pain points associated with non-fungible commodity exchanges

The Comdex decentralized synthetic exchange allows participants to act as:

Traders (who are engaged in buying and selling cAssets against CMDX using cSwap) Minters (who can create and open collateralized debt positions to obtain a newly minted cAsset. They must maintain a minimum collateral ratio of 150% to avoid liquidation) . Liquidity Providers that provide equal amounts of cAssets and CMDX so users can facilitate trades and providers can benefit from rewards and transaction fees. Stakers (who can earn CMD tokens using Omniflix and Unagii)

The interface itself is easy to navigate. The team and the project are driven by a mission. The goal of this product launch is to alleviate the pain points that come with commodities and digital assets.

Participants get the real-world benefit of on-chain asset diversification. The benefit of security and transparency that a decentralized synthetic asset exchange can provide. They also don’t have to worry about the cumbersome nature of logistics and warehousing that typically comes with investing in physical goods and raw materials.

Why trade synthetic assets?

Comdex anticipates that demand on its platform will expand at a rapid rate due to the benefits of synthetics over trading the physical assets themselves. Synthetic assets address multiple risks, including:

Seizure or Risk of Ban: US President Joe Biden’s recent decision to ban oil and gas imports from Russia shows that the commodity market can be unpredictable and struggle with uncertainty. Sometimes governments can go even further by confiscating commodities entirely. Synthetics cannot be seized and trading cannot be banned as they reside on a decentralized infrastructure. Risk of theft: Storing gold coins under your bed may make you happier, but this is not the safest approach. The risk of theft is considerable, and the problem is that your home insurance policy can cover any considerable investment, since most insurance packages stipulate clauses that prevent coverage of high-value items such as gold bullion. Elsewhere, synthetics cannot be stolen if you keep your private key secure. Third-Party Risk: Even if you stop storing physical items and decide to invest in futures contracts, you will most likely end up storing them with a third-party custodian, such as a bank or broker. Unfortunately, there is always a risk of insolvency associated with any centralized organization, including banks, shipping companies, or brokers. In the event of bankruptcy, you may own your investments in whole or in part. Since the synthetics are stored on the blockchain, there is no third-party risk.

On top of that, synths come with great benefits that can help traders have peace of mind about their commodity investments:

Easy Access – With synthetics, you can gain exposure to any commodity market without any hurdles. All you need to have is an internet connection and an account with Comdex. Costs – If you trade physical commodities or their futures, you must be prepared to pay broker fees, as well as storage, conversion, transportation, withdrawal, and other fees. The trading of synthetic raw materials reduces costs to a minimum thanks to the efficient use of resources. No Expiration of Futures Contracts: Commodity futures trading can be problematic for investors, as they are theoretically obligated to receive the physical goods once the contract expires. Synthetics work 24/7 without expiration.

Comdex strives to revolutionize the way people engage in commodity trading by merging decentralized technologies with real-world assets. The hybrid approach of this robust new decentralized synthetic asset exchange will change the game forever.

The question is, are you ready for it?

Image: Pixabay



This post How a game-changing decentralized synthetic exchange aims to unlock the true value of on-chain commodities and digital assets

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