Synthetics
AionicDAO enables users to issue tokenized synthetic assets that provide decentralized exposure to real-world asset prices. These synthetic assets use the ERC-20 token standard and may be transferred and traded just as any other ERC-20 token. By utilizing self-issued synthetic assets and individualized smart contracts, the protocol aims to ensure that these assets do not meet the definition of securities under the Howey Test.
Understanding the Howey Test
The Howey Test determines whether a transaction constitutes an investment contract (and thus a security) based on four criteria:
An Investment of Money
In a Common Enterprise
With an Expectation of Profits
Derived from the Efforts of Others
AionicDAO's system is designed to address each of these criteria to ensure that synthetic assets are not classified as securities under applicable securities laws.
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