How Can an NFT Be Used to Represent a Synthetic Asset That Is a Basket of Other Tokens? ▴ Learn

How Can an NFT Be Used to Represent a Synthetic Asset That Is a Basket of Other Tokens?

An NFT (ERC-721) can be used as a non-fungible receipt for a deposit of a diversified basket of other fungible tokens (ERC-20) into a vault smart contract. The NFT represents the unique ownership claim on that specific, multi-asset portfolio.

This is a synthetic asset because the NFT's value is derived from the combined value of the underlying ERC-20 tokens. It simplifies ownership and transfer, allowing a user to trade an entire portfolio with a single token.

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