1. What is the difference between cAssets and the Lyst token?

cAssets are designed to track the price of NFTs being sold in markets and give investors price exposure without owning the underlying assets. These cAssets grant an easy investment index for individual NFT sectors. As the protocol grows more cAssets will be added to track other markets
Lyst token is designed as an incentive for providing liquidity to the protocol and provide governance rights allowing holders to vote on proposals.

2. Why are cAssets useful?

The NFT market is growing at an exponential rate, but many people do not have the knowledge to invest in individual NFTs. cAssets will grant price exposure to a segment of the NFT market without the risking of owning individual NFTs and lowering the barrier of entry to the market.
The majority of users will only be purchasing cAssets while minting/burning will be mostly for arbitrageurs and short sellers.

3. How are cAssets traded

cAssets can be traded through AMM exchanges on the Matic network starting on Quickswap but expanding to other platforms.

4. What are Liquidity Pools?

A liquidity pool is a collection of funds locked in a smart contract. Liquidity pools are used to facilitate decentralized trading, lending, and many more functions

5. What are Synthetic Derivatives?

A derivative is any asset that derives its value from an underlying asset or index. Synthetics assets are simply a tokenized derivative that mimics the value of another asset.

6. What is Collateralization Ratio?

The collateral ratio is simply the ratio of the value of a CDP's locked collateral to the value of its current minted tokens.
Last modified 4mo ago