Cryptocurrency trader and influencer Tyler Swope says a little-known altcoin will soon become the favorite of the Reddit trading and investing community WallStreetBets.
In a new video, Swope outlines to his 178,000 subscribers the qualities that he believes the altcoin should have to gain the favor of WallStreetBets.
“Well, we are looking for the altcoins, who share similarities with what’s going on in finance 1.0, who can enhance the movement including enhancing where it all began on Reddit… There needs to be a synthetic solution, built for layer two, built for ease and onboarding of the norms.”
Swope says Bao Finance meets the requirements.
“So what is this Bao Finance all about? Synthetic assets, and using a combination of BAO tokens and liquidity pool tokens, as collateral for those synth assets, which can be anything including stonks!”
According to the protocol’s website, BAO stands for balancing, automation, and options. Bao Finance aims to integrate features to existing decentralized finance assets including yield farming, lending pools, options, margin trading, synthetic assets, and many more.
Bao Finance also highlights that it plans to make it easy for users to participate in the creation of synthetic assets.
“Right now existing protocols for synthetics (like Synthetix and UMA) require you to put your assets into a base token in order to collateralize the creation of your synthetic asset, taking on risk and losing you exposure to the underlying assets of your choice.
Instead of this, we are allowing users to use their Uniswap LP tokens to create synthetic assets, so they will still have their exposure to the underlying assets and the LP fees from that trade pair.”
The creator of Bao Finance warns that using the protocol comes with risks as it still in the first phase of software testing and the code remains unaudited.
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Featured Image: Shutterstock/Olivier Le Moal