A synthetic bond is a financial instrument that mimics the characteristics of traditional bonds using other assets. In the crypto space, this often involves using smart contracts to replicate the returns and risks associated with bonds without actually borrowing or lending money.Investors can gain exposure to bond-like investments without holding the physical asset. This is done by creating a synthetic version that represents the bond’s value, often collateralized with cryptocurrencies. As the underlying asset changes in value, the synthetic bond adjusts accordingly.These instruments offer more flexibility, allowing trades and transactions that can take place 24/7, unlike traditional bond markets. They also provide opportunities for hedging and speculative strategies. Overall, synthetic bonds enhance liquidity and accessibility, making it easier for individuals to invest in fixed-income-like products without the constraints of conventional financial systems.