Portfolio Diversification with Synthetic Assets
Access global markets from a single Solana wallet
Build a diversified portfolio spanning stocks, commodities, forex, and crypto ratios - all from within DeFi.
Step-by-Step Guide
Assess Your Current Allocation
Most crypto-native portfolios are heavily weighted toward crypto. Adding synthetic exposure to traditional assets reduces correlation and volatility.
Classic diversification: 60% equities, 30% bonds/commodities, 10% alternatives.
Choose Uncorrelated Assets
Select synthetics that don't move with crypto. Gold typically has low/negative correlation with risk assets. US treasuries (coming soon) provide stability.
Check historical correlations - some 'uncorrelated' assets move together in crises.
Mint Long Tokens for Holdings
For assets you want to hold long-term, mint L/S tokens and sell the Short side. This gives you directional exposure without expiration.
Consider holding both L+S for neutral exposure that can be adjusted later.
Allocate Based on Risk Tolerance
Conservative: 50% gold, 30% SPY, 20% crypto ratios. Aggressive: 20% gold, 40% tech stocks, 40% high-vol assets.
Rebalance quarterly or when allocations drift more than 5%.
Track Performance Holistically
Use portfolio tracking tools to monitor your synthetic positions alongside native crypto. View total portfolio performance, not individual positions.
True diversification feels uncomfortable - when crypto dumps, gold might rally.
Risks to Consider
- Currency risk if you're measuring in non-USD terms
- Protocol risk across multiple synthetic positions
- Correlation breakdown during black swan events
- Rebalancing costs eating into returns
Practice With These Assets
Related Guides
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