You can now carry exposure to world oil markets in your decentralized finance (DeFi) portfolio, thanks to the listing of Brent Crude Futures (Brent) on trading platform Synthetix.

Using syndicated data from Intercontinental Exchange (ICE), the Synthetic Oil (sOIL) token is live today on the Synthetix trading platform, according to a release shared early with CoinDesk. 

The addition of more real world assets “will be up to the community to request,” Synthetix founder Kain Warwick told CoinDesk in a Telegram message, adding that there is “a lot of interest in adding other commodities.”

Pricing data for sOIL is supplied by data provider Chainlink, further sourced from ICE for an undisclosed sum. Framework Labs, sister company of venture capital firm Framework Ventures, helped syndicate the data.

Synthetix – which conducted an initial coin offering (ICO) in 2018 for its ERC-20 styled Synth (SNX) token – enables the creation of synthetic financial contracts using its native token.

The platform currently offers 24 trading pairs ranging from cryptocurrencies to crypto indices to foreign exchange (FX) such as the euro. Each tradable contract is backed by a 750% collateralization of SNX and mimics price movements of the chosen asset through an oracle. SNX is currently trading hands at $4.12, according to Messari.

Crafting a tradable synthetic DeFi contract for oil also proved difficult, Warwick said, particularly in light of the physically deliverable nature of Brent.

“There were a number of issues around governance and formulating the algo for the price feeds, but the main reason was needing to ensure we have the most robust price feeds for the aggregator network possible,” Warwick said. “The team at [cryptofinance firm] XBTO helped construct a formula that took all of the current futures contracts and rolled them into a proxy for a spot price.”


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Brent Crude Oil Futures Now Tradable on DeFi Exchange Synthetix

by Mario Herndon
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