2️⃣How it works

Minting / Redeeming or Burning / Swapping - Explained

Minting:

When minting a Synthetic Asset such as sETH or sBTC you’re essentially adding RUNE to a liquidity pool (or swapping from an asset into RUNE, then adding that) for a synthetic asset of that pool. This process is known as Minting.

Redeeming or "Burning":

To redeem a synthetic asset you will need to swap it for RUNE, the Synths will then be burned forever, this process is known as “Redeeming” or “Burning”. A synthetic asset can be redeemed for RUNE at any time or swapped to RUNE then to any asset available on THORSwap.

Synths Assets are paired with real Assets holding the same value and can be redeemed 1:1

e.g Swap BTC for RUNE then mint Synthetic BTC will give you 1 sBTC.

This can later be redeemed to Rune and swapped for 1 BTC, excluding fees.

Swapping

You can perform Synths Swaps in the following ways:

• Layer 1 to Synth: L1 in, Rune moved over to the pool, Synth MINTED

• Synth to Layer 1: Synth REDEEMED, RUNE moved to next pool, Layer 1 swapped out

• Synth to Synth: Synth REDEEMED, RUNE moved over to the pool, synth Minted.

Synth holders do not experience any gain or any loss caused by price changes when minting / redeeming a synth. They do, however, pay a slip-based fee on entry or exit and tx fees.

If an active pool that minted synths becomes staged, then swaps are disabled. However, synth holders can always redeem for RUNE, or the underlying asset, by specifying that on the way out.