Permissionless, Arbitrary Synthetic Assets

Conjure allows anyone to create tokenized assets on Ethereum representing any asset you can imagine. The resulting Synths are fully collateralized by Ether and have their collateralization and value pegged via a powerful and flexible ability to combine multiple arbitrary price sources to produce a single reference price. Conjure is permissionless (akin to Uniswap or Balancer) and permits the creation of assets representing — for example — synthetic currencies, tokens from other blockchains, real world commodities, and exotic assets such as FX baskets and indices.

How It Works

Conjure has a very simple interface for creating assets. First, the user chooses a name and symbol for the asset. They can then create the parameters for the asset.

They will choose from the following:

Asset Type

Single Asset — i.e. a BTC synth, using the median value across sources to determine price

Basket Asset — an average-weighted price-based synth (i.e. the average across USD/GBP/EUR prices) with customisable weights

Index — uses the marketcap for a token to weight according to all other tokens. Allows for dynamic index pools to be created with any asset on uniswap.

Minting Fee

The fee charged to newly-minted synths, acting as an incentive for the creator to manage oracle sources and cover deployment costs. Minimum zero, maximum 2.5%. Conjure address takes a proportional fee from the creator fee: consequently, if no fee is set, we don’t take one either.

Price Sources

Sources to use as price oracle for the asset. These can be set to either a template source (such as Chainlink and Uniswap for novices) or custom sources allowing you to call any smart contract to get a reference rate.

The user then creates their asset, and can thereafter mint their Synth and share it with others. The creation of desirable/useful assets that can be minted by anyone else provides a profit-making opportunity, with third parties safe in the knowledge that the underlying collateral/assets are controlled by the associated Conjure contract.

Minting a Synth

Synths are — fundamentally — Collateralized Debt Positions (CDPs), working as loans. A user who wishes to mint a synth puts up a deposit in excess of the value of their desired mint amount, creating the underlying collateralization needed to peg the value to the synthetic asset. Said user then receives the synth to be traded as needed, and — when they wish to redeem their collateral — simply returns the amount corresponding to the value of the synth, and withdraws. The user can withdraw/deposit collateral to ensure they are always above the 1.2x collateralization threshold (i.e. collateral of $1,200 against a synth of value $1,000): should the peg move under this ratio, anyone can opt to liquidate the CDP for a reward, which is paid by the borrower as a penalty for not keeping their position sufficiently well-funded.

Meta Assets and Creative Freedom

Since each synth only risks the funds from that synth’s pool — and the oracle sources for any given synth are public — users can experiment with new concepts without putting the wider community at risk. The platform allows Ethereum to tokenize any asset onto it’s platform, allowing Ethereum to truly become the global financial settlement layer and open access to any asset in a decentralized and free market approach. Make a basket for currencies, create an inverse price synth for any Uniswap asset, index the indices, tokenize the weather: we’re excited to see the use cases that will come from an open synthetic platform!

What does Conjure really enable?

If Ethereum’s meant to be the global settlement layer for the future of finance, then it needs to allow users to get exposure to all the financial assets they want to, globally and permissionlessly. Conjure allows any asset that exists to be able to be ported onto Ethereum, in a decentralized, free market, permissionless model, in a simple and easy way. Conjure allows any potential asset that a user wishes to hold an asset for price exposure or for other purposes where a representation will meet their needs, to be able to, with a lifecycle whereby all participants have their needs and incentives met.

Say that a user in Bangledesh wants to have exposure to the S&P500. The S&P500 while not an actual asset and simply represents a market, can be tokenized through Conjure.

  1. A creator would create the SP500 Synth (SP500S) with say a .001% mint fee to cover maintaining the oracles and using multiple decentralized oracles to get the price for this asset.
  2. Minters, LPs and Speculators would mint these assets, paying say 2 ETH for 1 SP500S token (assume that SP500Ss worth 2 ETH, and only a 1x collateralization requirement (actually little higher for safety)), they do this as they are bullish on ETH price relative to the SP500S token, selling this token for 2 ETH to the open market. The price for ETH then 2xs, the minter can then buy back 1 SP500S tokens for 1 ETH, closing their loan and profiting 1 ETH by getting their 2 ETH collateral back.
  3. Users can then buy these assets from the markets that are created to be able to hold these assets, which are fully collateralized by the ETH that collateralized these assets. Allowing users to buy any asset they wish, with LPs and minters being able to profit by meeting any demand that exists. This opens Ethereum up to settle almost unlimited asset types and deploy asset types within minutes to meet demand. Conjure doesnt just unlock finance, it creates it.

While these assets are derivates in the way that they arent custodial representations for these assets (not backed by the asset they represent), they are no more derivatives than any wrapped or custodial assets, as even these are not actually the physical assets, they are digital representations. Conjure allows any potential asset that a user wishes to hold an asset for price exposure or for other purposes where a representation will meet their needs, to be able to.

Governance

The Conjure governance organization will be responsible for:

Deploying new factory implementations for more synthetic asset types and use cases

Maintaining the protocol, furthering development and managing growth

Approving new collateral assets for synths that users can select from

Managing the treasury for the Conjure DAO

CNJ Token Distribution

CNJ is the governance token for Conjure. The initial supply of 10,000,000 CNJ will be distributed as follows:

20% will go to the founders, investors and future team members, subject to vesting periods.

25% will be available for liquidity mining beginning in early 2021.

20% will be distributed to the DAO after the first liquidity mining phase to be used in a manner determined by governance.

30% will be made available to the treasury over the course of 24 months, following the first allocation.

5% will be allocated to a community committee to help grow the community and reward contributions

Check us out

Site

https://Conjure.Finance

Twitter

https://twitter.com/Conjurefi

Medium

https://conjurefi.medium.com/

GitHub

https://github.com/conjurefi

Discord

https://discord.com/invite/aYmfQVvCMy

Allowing anyone, anywhere to create any asset