Introduction
As blockchain technology and decentralized finance become increasingly adopted in a multi-chain environment, an inevitable challenge is the segmentation of liquidity, where the liquidity of the crypto market is spread on different blockchains and DeFi protocols.
As an emerging asset class, receipt tokens like Uniswap LP tokens or compound deposit receipts are illiquid and poorly utilized as a financial assets. We call those idle assets which are not capital efficient β€œFlat Assets”.
Duet Protocol (Duet) is a synthetic asset protocol built on a capital reserve system that unleashes liquidity to DeFi protocols. Duet treats single assets such as BTC/USDT/DAI and receipt tokens such as WBNB-BUSD LP as collateral and credits users with liquidity in the form of synthetic stablecoin dUSD and other synthetic assets.
Imagine a world where you can open an asset account anytime anywhere in the world, borrow cash against your assets anonymously in a second, earn more assets by lending it to a short seller, own a tiny piece of an indivisible asset like a house or even program your asset so that any stranger can conduct any kind of business with you without either one of you worrying to be cheated. These are just some of the privileges that are already made a reality with blockchain technology and now with Duet Synthetic Assets. With better availability, transparency, and programmability, we call Duet synthetic assets β€œSharp Assets”
By connecting the fragmented liquidity on-chain, Duet enables investors to manage risk exposures of different asset classes, regions, and industries in just one cryptocurrency wallet. These synthetic assets are an upgraded version of their previous form, as properties like availability, divisibility and programmability are enabled by blockchain technology.
Duet is Powered by Duet DAO. Duet DAO community members(who own the DUET/DUET bonds or other governance tools) will choose collaterals to be listed as well as the synthetic assets to supply through voting.
In Duet protocol, to attract long-lasting liquidity in a sustainable way, we would be distributing native tokens in an alternative form----"Duet Bond”
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