DeFi synthetic assets present an opportunity to boost stock market returns by over 400%

The stock market has long been a source of capital growth for many investors across the world. Dating back to the 1400s, this market has grown significantly to stand at the centre of modern-day finance featuring popular exchanges like the New York Stock Exchange (NYSE), Nasdaq and the Hong Kong Stock Exchange. While many companies are listed on these exchanges, futuristic firms like Tesla show massive potential for long-term growth. 

Tesla’s stock is currently one of the best performing securities that give investors an opportunity to grow their wealth. It is currently trading at $679 per share, surging by over 700% within the past year. Going by this statistic and the upcoming release of Tesla’s updated full self-driving software, the company’s share price could see more growth in the coming years. 

Even better, investors now have an opportunity to combine Tesla’s growth potential with dividends by leveraging the DeFi ecosystem. This upcoming niche within the crypto market features decentralized financial services and products, including decentralized exchanges, derivative instruments, and Synthetic asset exchanges. The latter allows investors to trade synthetic assets pegged to real-world prices such as Tesla’s share price. 

Scaling Income Potential with Synthetic Assets

The traditional financial ecosystem may have existed for hundreds of years, but that is not to say it is a perfect model. Traditional finance is built on centralized architectures at the core, which means that third parties have much rein on market activity. However, crypto innovations are now changing the narrative by introducing decentralized ecosystems where anyone can participate. 

One of the exciting developments has been in Synthetic assets, with platforms like Twindex leading the industry. This synthetic assets exchange is a first of its kind as it allows investors to trade decentralized synthetic assets, including Tesla’s stock. Built on Binance Smart Chain (BSC), Twindex also enables users to mint synthetic assets through a fractional-algorithmic stablecoin  called KUSD that is highly scalable and has zero volatility

As for income scaling, Twindex further extends its services to feature liquidity provision and yield farming. These programs offer users an opportunity to make an extra buck that complements their stable investments in stocks such as Tesla. Some of Twindex’s yield farming pairs had offered more than 1,000% APR while it also features an option to buy TWX.

Given this value proposition, it is becoming evident that investors ought to explore the DeFi ecosystem for income scaling opportunities. For instance, an investor who chooses to buy Tesla’s synthetic asset through Twindex will likely be exposed to capital growth and lucrative dividends in the form of native digital tokens such as TWX. Returns can go as high as 430% annually. 

A Glimpse into the Future

Cryptocurrencies are emerging as a disruptive niche to the existing traditional finance infrastructure. Many TradFi stakeholders have criticized this industry, although the trend is now changing with Wall Street paying more attention to crypto-assets like Bitcoin, Ethereum and the nascent DeFi market. 

With innovation at the peak, integration solutions to link crypto and traditional finance are fast coming up. These solutions are now opening up more investment opportunities and increasing financial inclusion. While it may take a while before both ecosystems combine synergies, it is inevitable for retail and institutions to explore decentralized markets in future.

Conclusion 

The goal of many investors is to maximize market opportunities while minimizing their risk exposure. Combining traditional stocks with crypto market returns could be one way to achieve a balanced portfolio with promising prospects. However, investors must bear in mind that cryptocurrencies are inherently volatile and could deviate from expected returns by a significant figure.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


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