Kwenta, a decentralized finance protocol, announced Friday that it would make available synthetic tokens for so-called FAANG stocks for trade on its platform.
What Happened: Kwenta is an Ethereum decentralized application or dApp — which is in turn underpinned by Synthetix — a software that allows users to mint new crypto assets that mimic other assets in both the crypto or real realms.
The project announced the availability of synths that track the price of FAANG acronym stocks made up of Facebook Inc FB, Apple Inc AAPL, Amazon.com, Inc AMZN Netflix Inc NFLX, and Alphabet Inc GOOGL GOOG.
Last month, the project had launched an experimental synth that tracked Tesla Inc TSLA.
Kwenta said that offering liquidity on these assets through an automated market maker such as Balancer can allow some price discovery and access outside of market hours.
During regular market hours, the equity Synths are tradable against Synthetix smart contracts with infinite liquidity and zero slippage — a reference to the difference between the expected price of a trade and the price at which the trade is executed.
Why It Matters: Kwenta said more equity Synths would be coming to the platform soon with Microsoft Corporation MSFT and Coinbase Global Inc COIN stock to be added “within the coming weeks.”
The average transaction fee on the Ethereum network is touching 0.0089 ETH or $19.28, according to BitInfoCharts, which makes buying real stocks considerably cheaper.
As per Etherscan, for more complex transactions such as Uniswap (UNI) swaps, the average transaction fee is $45.08. Ethereum (ETH) traded 11.7% lower at $2,192.27 at press time.
Earlier in April, Binance announced it would allow tokenized stocks of Tesla to be carried out on its platform.
The tokenized stock announcement could land the cryptocurrency exchange in trouble with Hong Kong regulators.
The marketing campaign around the tokenized stocks could be classified as a regulated activity in the territory that requires a license, which the exchange reportedly does not hold in Hong Kong.
Read Next: Is 2021 The Year Of Tokenized Assets?
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