The Persistence Ecosystem Week — Day 1: Comdex and changing the narrative about synthetic assets
Persistence is carving out a niche for itself as the leader and major project looking to help improve decentralized finance (DeFi). As seen today, there is rapid growth and expansion within the ecosystem. Being the pioneer for a series of next-gen financial products, it is easy to know why there is such a hype around this top DeFi project. In view of that, the Persistence team have launched the Ecosystem Week to help throw more light on the recent developments within the ecosystem.
The Ecosystem Week lasted for seven (7) days starting from the 28th of June to the 4th of July, 2021. This article is a review of Day one of the Persistence Ecosystem Week. This day was about Persistence’s flagship dApp, COMDEX and how it is democratizing commodities through interchain synthetic assets. This is meant to show us how Comdex is changing our perception of synthetic assets. First of all, though, what are these synthetic assets?
Synthetic assets are actually a combination of assets that have the same effect as the ownership of another asset. Synthetic assets derived their value from other assets like currency, stocks, bonds, minerals, precious metals and other commodities. They can help track and provide new opportunities for the aforementioned asset classes and more without the investors having to hold these real-world assets. This is actually a great concept. The beauty of it all is that Comdex is helping to pioneer the push for this narrative of commodity synthetics within their Cosmos ecosystem. This new commodity synthetics of Comdex, built on Cosmos, is set to open up various opportunities outside what is normally experienced in the crypto space and decentralized finance, DeFi. The result of this is greater access. Cryptocurrency and blockchain enthusiasts are given access to a wide range of commodities through the Comdex trading platform.
You might say this is all talk and of what significance is this to us? Well, it is easy. Human civilization has always thrived but we can’t rule out the importance of commodities to this success and it is fair to say that commodities have served as a backbone for this growth. Over time it has been seen that the commodity industry usually grows in strength during periods where there is a reduced belief in the regular fiat currency. What Comdex is doing is really great by granting access (permissionless) to the world for the first time ever. Being able to speculate the price of certain commodities will be a tip of what is expected. Certain commodities that are sustenance-based would act as a safe spot during periods of economic uncertainty and would also definitely appreciate when viewed, long-term. It is hard to say that you can’t notice the increase in the demand for synthetic assets. Comdex would be making this range of offerings to include such commodities.
You might begin to wonder why these new synthetic commodities are being anticipated.
1. They would grant you exposure to a wide range of opportunities. One cannot underestimate the degree of volatility that commodities can have and so having access would be beneficial.
2. There would be diversification. It is a well-known fact that commodities don’t have much of a correlation with stocks and bonds thus helping to provide more spread inside the user’s portfolio.
3. Users will be protected against inflation. We know how much of a killer that inflation can be but it is a fact that many of these commodities benefit from these high inflation periods.
Let’s embrace the beauty that is Comdex as we explore the benefits that users can derive from the decentralized nature of synthetic assets.
Thank you Persistence. Thank you Comdex.
Persistence Website: https://persistence.one
Comdex Website: https://comdex.one
