# Symblox Q&A ## What is Symblox? Symblox is a technology that brings real assets to the blockchain. Anyone can use Symblox to issue any asset classes, including foreign exchange, stocks, gold, futures, etc., to the blockchain and directly trade and profit. ## What problems can Symblox solve? Symblox allows anyone at any location to participate in a global financial market, utilizing the most advanced and complex financial products including foreign exchange, equities, and futures contracts to make profits. The participation, use and selection of diversified financial products by users in underdeveloped financial markets will be greatly increased. ## What is Symblox's vision? Symblox hopes to become a bridge between real world assets and blockchain, allowing users around the globe to enjoy a range of diversified financial products. ## How do users profit on the Symblox protocol? - Provide liquidity for the protocol and obtain rewards by casting and issuing synthetic assets; - Transaction fees obtained through trades will be dispersed to those holding the Symblox token SYX pro rata; - Users directly trade various synthetic assets on the Symblox protocol for speculation and profit; ## What assets do Symblox currently support? The first phase of Symblox will support a variety of mainstream digital currencies including BTC/ETH/VLX, and mainstream stable coins such as USDT/USDC/DAI. ## How does one issue or create synthetic assets and trade them on the Symblox protocol? The user will first collateralize the digital assets supported by the Symblox protocol, such as VLX. According to the value of the collateralized digital assets, synthetic assets of corresponding value can be issued. For example, if VLX worth $15,000 USD is collateralized, users can issue up to 10,000 USD worth of syUSD (must ensure that the collateral rate exceeds 150%), and then users can use syUSD to directly trade on Symblox. For example: When the price of gold is $1,000 USD/oz, users can exchange 10,000 syUSD for 10 oz syGOLD on Symblox. When the price of gold rises to $1,200 USD per ounce, users can sell syGOLD through the Symblox platform and receive 12,000 syUSD, that is, 2,000 syUSD in profit. ## What's the advantages of the Symblox protocol? Firstly, the Symblox protocol supports multiple digital assets as collateral, so as to avoid a single asset from causing systemic risks due to the large fluctuations in its price. Secondly, the support of multiple assets as collateral means that the balance sheet of the Symblox protocol can be expanded rapidly. For example, by supporting Bitcoin, Symblox users can use hundreds of billions of dollars of Bitcoin as collateral and issue hundreds of billions of synthetic assets, so as to provide sufficient scalability for more synthetic assets to be issued on Symblox in the future. ## How to ensure the security of assets? - Firstly, Symblox is a synthetic asset protocol that is implemented entirely through smart contracts and runs entirely on the blockchain. It is not subject to manipulation by any individual or organization; - Secondly, Symblox attains 100% openness and transparency. That is, all codes are open source; all user assets are fully managed by smart contracts; all transactions are fully traceable and verifiable on the blockchain; - Thirdly, Symblox supports a variety of assets with different risk attributes as collateral, and the protocol implements restrictions on the price increase and decrease of synthetic assets, and a collateral clearing mechanism. It avoids systemic risks to the greatest extent. - Finally, Symblox was created for the community and governed by Symblox token SYX holders, allowing participants with varying experiences from different industries to optimize Symblox in order to ensure the continued healthy development. ## What is the Symblox collateral liquidation mechanism? When the scale of synthetic assets issued by user A exceeds the minimum collateral rate, if the price drops and the value of the collateral target is less than 150%, any other user (third party) can liquidate the assets issued by user A to obtain rewards. For example: User A collateralized $15,000 USD worth of VLX and issued 10,000 syUSD. If the price of VLX drops and the value of the collateralized VLX is only $14,000, user A's rate is already less than the requirement of 150%. At this time, user Z can use his own syUSD to destroy the 10,000 syUSD issued by him on behalf of user A, thereby obtaining a VLX reward worth 10,000 US dollars. And there is a preferential discount (such as 10%), which means that the total value of his VLX is $11,000. User A can only get back the remaining $3,000 VLX; ## Why are the collateral assets that can be deposited in the trading pool and seed pool different? In order to avoid a one-time injection of large assets into the trading pool and diluting the rights and interests of other users, each collateralized asset can be deposited in the trading pool but cannot exceed half of the existing assets in the pool; For example: If the existing assets in the trading pool is 10 million, but user C wishes to deposit 6 million, the protocol will not allow it because the maximum user C can deposit is 5 million (1000M / 2 = 5M). ## Why do you think people like DeFi? What pain points does it address? - Trust source in crises: banking crisis, hyperinflation, currency crisis, or unexpected devaluations. - Tackling global inefficiencies: 2 billion+ people are unbanked, expensive cross-border services, sanctions. - Bypass local bans: e.g. capital outflow and FX controls. - Empower creativity: banking, derivatives, indexes. ## What are some advantages of Symblox building on the Velas blockchain? VELAS stands for Virtual Expanding Learning Autonomous System, and it is the first attempt at marrying artificial intuition with blockchain. Through its AI-DPoS consensus algorithm, Velas operates autonomously by being self-learning and self-optimizing, thereby eliminating the risks associated with human error. This will drastically increase all functionalities and efficiencies of the blockchain technology, thereby improving all real-world applications that are to be built on the blockchain. A robust DeFi market means optimal fluidity and speed in completing transactions. Velas is able to deliver up to 30,000 transactions per second with a speed of anywhere from 2 seconds to 2 minutes. It will be the most scalable blockchain in existence, which allows Symblox to scale appropriately. Interoperability between various cryptocurrencies also means the exponential increase in the size of the liquidity pool and market. Projects built on Ethereum will only allow users to collateralize ETH or ERC tokens, but since Velas’ “containers” enable cross-chain functionality of over 1,000 different cryptocurrencies, Symblox will be able to facilitate users to collateralize a variety of coins on its platform. Increased security – Overall, decentralized blockchains dismantle the inherent vulnerability of centralized databases, requiring cyber attackers to challenge not one but several entrance gates. However, when adding a machine learning algorithm that Velas integrates, it can be trained to automate real-time threat detection and to continuously learn about the behavior of attackers, thereby thickening the malware detection armor. Therefore, Symblox will be particularly secure and provide an ease of mind for its users.