---
description: Welcome to Shadows Network
---

# Shadows Network Docs

![](https://1234026632-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MSCLbP9kX2H5ey_zBoh%2F-MSMVq6okPNTZ8rsuQZj%2F-MSMWILZRXDO_6FtRwoX%2Fbanner.png?alt=media\&token=2a3380ee-56ca-4582-b896-986d34d2ec93)

## What is Shadows?

Shadows is a decentralized synthetic asset issuance protocol built on Substrate. The value of these synthetic assets is underpinned by DOWS, and as long as DOWS is locked in a smart contract, synthetic assets can be issued.

Unique debt pool design mechanism. Trading of synthetic assets is essentially a transfer between debts. Smart contracts automatically execute the conversion of a synthetic asset to another synthetic asset without an order book, without counterparties, and without the problems of liquidity and trading slippage.

## Why do you need Shadows？

Since there will always be people who are unable or unwilling to hold the initial assets, synthetic assets can fulfill our more diversified needs.

or users with hedging needs, they need stablecoins (which are synthetic assets) on the blockchain for liquidity rather than dollars;

synthetic assets often have more financial attributes than original assets.

For example, your cannot earn interest by holding BTC, but you can obtain continuous income by holding xBTC anchored to BTC.

## Powering the Shadows

### Trading Bonus

When someone trades synthetic assets in the Shadows Network, transaction fees are generated, which is distributed to DOWS holders.

### Synthetic Asset Reward

Users can pledge DOWS into smart contracts to cast synthetic assets, and the corresponding rewards can be obtained if the collateral rate reaches 800%.

### Staking

Users who hold DOWS can use it as collateral to cast synthetic assets and receive staking rewards.

### Governance

DOWS token holders have the right to vote on system governance, such as adding new features, upgrading and fixing protocols, etc.

