What are Cloned Assets?

Discover the concept of cloned assets, Clone's unique tokens that can amplify liquidity for any non-native asset market on Solana.

TLDR: Cloned Assets make it easy to create liquid markets for non-native assets on Solana.

Cloned Assets: A DeFi Breakthrough

Cloned assets represent a groundbreaking innovation in the world of DeFi. Bridging solutions make it possible to move almost any token to a blockchain like Solana, so why aren't these assets all readily tradable? Cloned assets, or clAssets, are built specifically to make it as cheap and easy as possible to create liquid markets for these tokens. clAssets are designed to precisely replicate the price dynamics of their original counterparts, with considerable improvements in liquidity efficiency, providing a seamless and integrated trading experience. Let's explore the benefits of clAsset markets when compared to other options for trading non-native assets on Solana.

clAssets vs. Spot Markets for Bridged Assets:

  • Spot markets for bridged assets on Solana are scarce. This scarcity is primarily due to the fragmentation of bridged asset liquidity across different bridged versions of the same non-native asset. Liquidity providers must commit to a specific bridge and provide their liquidity on a specific DEX.

  • For LPs, choosing which bridge and DEX to use for a particular non-native asset involves risk and uncertainty. Multiple bridges mean multiple versions of the same asset, complicating the liquidity provision process and resulting in scarce liquidity.

  • Clone addresses this fragmentation by offering a unified, efficient platform for trading non-native assets on Solana through clAssets. Clone consolidates liquidity and makes it easy for LPs to contribute.

clAssets vs. Perpetual Contracts:

  • Perpetual contracts offer high leverage trading for various assets, including non-native ones. However, owning a perp contract differs significantly from owning an actual token, limiting their use in broader DeFi applications.

  • clAssets are real, tradable tokens that you can own in your wallet, enabling their use in borrowing, market marking, as collateral, and more within the Solana DeFi ecosystem. This versatility provides a more holistic approach compared to the singular focus of perpetual contracts.

clAssets vs. Cross-Chain Swap:

  • Cross-chain swaps facilitate the use of Solana tokens to acquire non-native assets on their native chains. This process, while innovative, won't allow you to trade your favorite non-native tokens while staying on Solana.

  • Cloned assets allow for the direct purchase and utilization of non-native tokens on Solana, filling a significant gap in the market. This opens up new avenues for asset utilization and investment directly on the Solana blockchain.

Cloned assets represent more than just an innovative trading solution; they are a testament to Clone's commitment to solving fundamental challenges within Solana DeFi. By effectively addressing the liquidity fragmentation problem, clAssets have opened new doors for trading non-native assets on Solana, offering traders and liquidity providers alike a more streamlined, efficient, and accessible platform. As you explore the comparison table above, you'll see how clAssets stand out as a versatile and superior choice for non-native asset trading on Solana.

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