Continuum Logocontinuum
Basics

What Is Minting?

The process of creating new synthetic tokens by depositing collateral.

Definition

Minting is how synthetic tokens come into existence. You deposit collateral into a protocol, which creates new tokens representing exposure to the underlying asset.

How It Works

Deposit accepted collateral (e.g., stablecoins) into the protocol. Smart contracts mint new synthetic tokens proportional to your deposit and send them to your wallet.

In Continuum

At Continuum, minting creates paired L/S tokens. Deposit 1000 USDC, receive 1000 USDC worth of Long tokens AND 1000 USDC worth of Short tokens (values move inversely as prices change).

Related Terms

Redemption

The process of burning synthetic tokens to receive back the underlying collateral.

Collateral

Assets deposited to back or secure a financial position.

Synthetic Asset

A token that tracks the price of another asset without requiring ownership of the underlying.

More Basics Terms

Synthetic AssetLong Token (L Token)Short Token (S Token)Collateral

Get early access to Continuum and trade synthetic assets 24/7 on Solana.

Get Early Access