Minting synthetic assets with LPs from Pangolin dex

Hi everyone,

We are building the Baklava.Space. Our goal is to offer synthetic asset minting to Pangolin LP holders.

Currently, we are already live https://baklava.space/ on Avalanche network, and accepts LPs from Pangolin dex for yield auto-compounding. This is our first step.

Next, we are making the synthetic asset minting happen soon. The idea is you deposit your LPs from Pangolin, get compounded yield, and get some exposure to assets like TSLA.

Looking forward to share more developments with the community.

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Hi all,
I am Keith from Baklava Space. Thanks everyone for listening yesterday’s AMA.

To elaborate on the synthetic asset creation process, this is how it goes:

  1. Users to deposit LP as collateral in Baklava Space.

  2. Baklava Space will provide users with a BLP token as a receipt for the LP collateral.

  3. Users can decide to borrow up to 50% of the value of the LP. E.g. if $1000 LP is deposited as collateral, up to $500 worth of USD stablecoin credits can be borrowed.

  4. The credits can only be used to mint synthetic assets in Baklava Space. For example, with $500 stablecoin credits, $500 worth of TSLA synthetic asset can be created. bTSAL, a token with its value pegged to Tesla shares will be created and issued to the users’ wallet.

  5. These minted assets are not traded in Baklava platform. The only way to close the position will be to burn the minted tokens in Baklava Space.

  6. When users want to close their position. They will initiate a token burn process. The total value of the synthetic assets will be used to knock off against their USD stablecoin credit position. For example, if the bTSLA token is worth $700 at point of burning, $500 will be used to pay back the $500 stablecoin credit and $200 will be the user’s profit. Once the token burn is completed and the credit position is unwinded, the original deposited LP collateral will be released to the users for withdrawal.

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That’s a nice idea that could invigorate the Pangolin community.

I suggest that when the synthetic tokens come out it should be incentivised via Pangolin’s super farm so that liquidity can be brought into our exchanges.

Also, congrats on the juicy super farm reward.

This sounds great guys. I have some questions regarding the synthetic assets though.

How do you plan to tie these assets to real world asset such as TSLA for example?

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Welcome Keith,

In your example 6.

This $200 is paid in which token?

The tying of the real world asset prices will be done through price feeds from oracles such as chainlink. Which means that the assets that we can offer for minting will be limited to those that has a price feed from oracles.

It will be either be in USDC, USDBava (stablecoin) or BAVA tokens. Which payout token do you prefer?

Hi guys, Baklava Space will at the Avalanche summit in this March, I would love to meet up with the Pangolin team :slight_smile:

How do you prevent counter party risk? Are you going to hold real equities because if the price of the equities rises you will have to pay holders in your platform.

We will hedge with various counterparties both dex and cex, depending on the asset types.

any future plan to have the synthetic asset farms available on pangolin?

that would be good especially if we can also vote for the synthetics