Through the over collateralized minting of, fungible “iAssets”, a.k.a. synthetics, Indigo wants to level the playing field of the financial world.
Through Indigo’s Mint contract users can mint fungible iAsset tokens that are tied to the real-world price of the asset they are mirroring. These iAssets can be fractionally owned, and, without the censorship and financial and geographic boundaries of their real-world counterparts, they help to foster inclusion in the new, 24-7-365, borderless financial markets being created by DeFi.
In order to mint iAssets one must first place collateral, in the form of stable coins or iAssets, into the smart contract. The contract requires that newly minted iAssets be over collateralized, anywhere between 150-200% of the real-world asset’s value; with the exact ratio depending on the price volatility of the real-world asset.
Once the iAsset is minted it can be used in many of the ways that institutions and wealthy individuals currently use assets e.g. shorting. These iAssets can also be traded for other iAssets on the platform and their prices are kept in check by autonomous oracles, currently Charli3 and Chainlink, ensuring that the price of a synthetic asset is always up-to-date with its real-world price.
Users can also become liquidity providers on the Indigo platform, simply by depositing both their iAsset along with stablecoins to match its value. By doing so, users can earn interest in the form of the native token INDY. INDY can be earned as rewards when a user stakes INDY to the protocols stake pool. INDY is also used as a governance token and INDY staked to the protocols stake pool can be used to vote on, or create, governance proposals for the protocol.
Once the platform is live there will be both a web and mobile app available to users.