Synthetix Community Votes To Tokenize Tesla Stocks
Synthetix’s governance board has voted to add Tesla stocks (TSLA) to the DeFi derivatives trading protocol.
Tesla Coming to Synthetix
The addition of a synthetic TSLA asset was first officially proposed on Feb. 2. The vote was put in motion on Feb. 10, and it required approval from the Spartan Council, a governance board that votes on proposals on behalf of the Synthetix community.
The proposal passed unanimously, as all eight members of the Synthetix governance board voted to add sTSLA to the protocol.
With the addition of synthetic Tesla stocks, Synthetix users will now be able to trade on one of the biggest corporate stocks from a DeFi app rather than a retail trading app such as Robinhood.
The synthetic TSLA stock will be listed with the ticker “sTSLA.”
Tesla’s Crypto Connection
On Monday, Tesla caused a frenzy across the cryptocurrency community when the company revealed that it had made a $1.5 billion investment in Bitcoin in January.
The news came during a series of crypto-related musings from Musk, who took to promoting Dogecoin and alluding to an “inevitable” outcome as he referenced Bitcoin in his Twitter bio.
TSLA’s stock price has risen by more than 420% over the last year. The ongoing price rally helped founder Elon Musk become the richest person in the world in January.
Synthetix Faces Competition
Synthetix isn’t the only protocol to embrace synthetic stocks. Injective Protocol turned heads when it announced support for FAANG stocks, Forex trading, and GameStop. Another DeFi platform, Mirror Protocol, also lists its own synthetic TSLA stock.
But with $2.87 billion in value locked inside Synthetix, those projects are trailing behind Synthetix by a wide margin.
Disclosure: At the time of writing, the author of this feature owned ETH and SNX, among a number of other cryptocurrencies.
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