What can I do with Synths?

Provide Liquidity

Yam Synths offers UMA liquidity mining rewards to token sponsors. To qualify for rewards, users must both mint synths and provide liquidity in the selected AMM, located on a Decentralized Exchange.

On top of UMA rewards, liquidity providers also earn trading fees on a pro-rata basis from the AMM (exact rates dependent on the DEX).

Liquidity Providers also take on impermanent loss risk, which may impact how users choose to redeem/settle positions.

Go Long

Are you bullish on a specific synth? Go Long to express your view on a variety of innovative synthetic assets. Simply buy the synth from the AMM pool. You can then hold it until expiry, or sell it back to the AMM pool anytime beforehand.

Go Short

Go Short if you think a synth is overpriced and want to profit from falling prices. To do this you will need to mint the synth against collateral and sell it to the relevant AMM pool. To realize gains/losses on your position you can hold until expiry, or buy back the synth beforehand.