Cryptocurrency market analyst and influencer Tyler Swope predict a little-known altcoin will become the darling of the Reddit investment community WallStreetBets (WSB).
In a recent YouTube update, Swope told his subscribers Bao Finance (BAO) meets the criteria for gaining favor with WSB. He highlighted an emphasis on real-world solutions and layer-two functionality that was built for ease.
He said, “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!”
The project seeks to integrate existing decentralized finance (DeFi) features, such as yield farming, lending pools and options trading with synthetic assets and automation.
According to the project’s official website, “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.”
BAO allows traders to use Uniwsap tokens to create synthetic assets, thereby giving them exposure to the underlying assets.