Synapse Protocol: the cross-chain AMM & Bridge
With everyone focused on L1s in 2021, hype starts to shift to bridges & interoperability in 2022
Here's your guide to Synapse Protocol ( $SYN), a protocol working to bridge different L1s & L2s and make them interoperable.
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With everyone focused on L1s in 2021, hype starts to shift to bridges & interoperability in 2022
Here's your guide to Synapse Protocol ( $SYN), a protocol working to bridge different L1s & L2s and make them interoperable.
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Before we start. This is not financial advice, and you should always DYOR.
This is basically my notes from my research process on $SYN.
I own $SYN, but I have no idea if itβs a good buy now (itβs up 50% in the last 2 weeks).
I will not present any price predictions.
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This is basically my notes from my research process on $SYN.
I own $SYN, but I have no idea if itβs a good buy now (itβs up 50% in the last 2 weeks).
I will not present any price predictions.
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Alternate L1s grew by an insane amount in 2021
The Smart Contract protocol space is transitioning to one composed of many blockchains from one that was previously dominated by Ethereum
In 2021 Ethereum lost nearly one-third of its share in the smart contract platform market
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The Smart Contract protocol space is transitioning to one composed of many blockchains from one that was previously dominated by Ethereum
In 2021 Ethereum lost nearly one-third of its share in the smart contract platform market
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This trend sets the stage for material value to accrue to the interoperability layer, as bridging and cross-chain/layer swap volumes grow.
This gives an opportunity for cross-chain protocols like @SynapseProtocol.
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This gives an opportunity for cross-chain protocols like @SynapseProtocol.
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Synapse Protocol is a cross-chain liquidity protocol. Synapse offers users fast sub-3-minute bridge times of assets between chains as well as rollup layers.
It also supports native cross-chain asset swaps.
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It also supports native cross-chain asset swaps.
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Synapse powers interoperability between blockchains.
It has 2 main components:
1) The Synapse Network β Cross-chain infrastructure powered by multi-party computation validators
2) The Synapse AMM β a cross-chain AMM that prices and rebalances assets based on capital flow
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It has 2 main components:
1) The Synapse Network β Cross-chain infrastructure powered by multi-party computation validators
2) The Synapse AMM β a cross-chain AMM that prices and rebalances assets based on capital flow
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Synapse supports bridging and swaps across all major EVM chains.
This includes Ethereum, BSC, Polygon, Avalanche, Arbitrum, Optimism, Fantom, and Harmony.
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This includes Ethereum, BSC, Polygon, Avalanche, Arbitrum, Optimism, Fantom, and Harmony.
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The protocol has been growing rapidly.
Current TVL is 888.47 million.
Synapse is able to offer native cross-chain swaps.
There's no need to wrap or peg tokens.
Users also don't have to interact with centralized exchanges.
They can seamlessly use the Synapse bridge..
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Current TVL is 888.47 million.
Synapse is able to offer native cross-chain swaps.
There's no need to wrap or peg tokens.
Users also don't have to interact with centralized exchanges.
They can seamlessly use the Synapse bridge..
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anywhere in the EVM world in a permissionless manner.
The current bridge volume is 8.69 Billion, and the most used bridges are the Ethereum, Arbitrum, and Avax.
You can find all the stats here:
analytics.synapseprotocol.com
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The current bridge volume is 8.69 Billion, and the most used bridges are the Ethereum, Arbitrum, and Avax.
You can find all the stats here:
analytics.synapseprotocol.com
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In the future Synapse will support Rust, IBC, and UTXO bridges.
In fact, the Synapse Protocol team has a UTXO-EVM and Rust-EVM bridge in development.
Synapse's native token is $SYN.
Currently, this is just used for governance, but Synapse is going to transition towards...
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In fact, the Synapse Protocol team has a UTXO-EVM and Rust-EVM bridge in development.
Synapse's native token is $SYN.
Currently, this is just used for governance, but Synapse is going to transition towards...
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becoming a DPoS chain (Delegated Proof of Stake) to economically secure the validity of the protocol's messaging system.
Upon launch of the Synapse Chain, Synapse will no longer require AMM pools on each chain but will instead be able to replace with liquidity...
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Upon launch of the Synapse Chain, Synapse will no longer require AMM pools on each chain but will instead be able to replace with liquidity...
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on the Synapse chain, leading to greater capital efficiency and a significant cut in SYN emissions.
Additionally, the Synapse Chain will allow developers to build on top of Synapse cross-chain liquidity and create a new generation of protocols, able to interact...
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Additionally, the Synapse Chain will allow developers to build on top of Synapse cross-chain liquidity and create a new generation of protocols, able to interact...
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with assets regardless of which blockchain those are located.
In addition to a native L1 ecosystem that will include the usual DeFi building blocks (e.g. DEX, lending platforms, derivatives), the Synapse Chain will allow the emergence of new primitives.
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In addition to a native L1 ecosystem that will include the usual DeFi building blocks (e.g. DEX, lending platforms, derivatives), the Synapse Chain will allow the emergence of new primitives.
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In other words, Synapse will become an integral building block of an entirely new class of cross-chain applications.
In the future, users will be able to stake $SYN. They'll be able to earn rewards on staked SYN. These rewards will also auto-compound.
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In the future, users will be able to stake $SYN. They'll be able to earn rewards on staked SYN. These rewards will also auto-compound.
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Similar to other PoS L1s, to unstake $SYN, users will have to wait through a 7-day "undelegate" period.
During this 7 day period, rewards will not be earned.
Once the day period is over, a user then has full access to their $SYN.
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During this 7 day period, rewards will not be earned.
Once the day period is over, a user then has full access to their $SYN.
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If you want to earn rewards on your $SYN tokens today, your best option is to go into a LP with $ETH / $SYN.
This is currently paying out 71% APY, but itβs worth mentioning that you may experience severe impermanent loss (IL).
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This is currently paying out 71% APY, but itβs worth mentioning that you may experience severe impermanent loss (IL).
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Synapse Protocol has split its launch into three main phases:
β’ The Hadean Phase: there is rapid growth and development, and guardrails are in place to ensure safe deployment of features.
This is the current phase.
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β’ The Hadean Phase: there is rapid growth and development, and guardrails are in place to ensure safe deployment of features.
This is the current phase.
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β’ The Archean Phase: more validator decentralization is implemented, primarily via the launch of the Synapse Chain
Synapse moves to DPoS. Validators and delegators are incentivized via SYN rewards
Synapse will create a cross-chain interoperable ecosystem, secured by $SYN
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Synapse moves to DPoS. Validators and delegators are incentivized via SYN rewards
Synapse will create a cross-chain interoperable ecosystem, secured by $SYN
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β’ The Proterozoic Phase: The Synapse Chain grows and hardens.
Zero-Knowledge proof is integrated, allowing for further decentralization.
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Zero-Knowledge proof is integrated, allowing for further decentralization.
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Synapse has a lot of potential.
Increased user activity on rollup layers increasing demand for fast transfers/bridges, which is a core Synapse offering.
New EVM bridges to $BTC and $DOT will likely increase volumes.
$SYN is also moving towards a better token model.
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Increased user activity on rollup layers increasing demand for fast transfers/bridges, which is a core Synapse offering.
New EVM bridges to $BTC and $DOT will likely increase volumes.
$SYN is also moving towards a better token model.
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2 days ago Synapse Protocol revealed that theyβve launched support for $UST, the largest and most widely used decentralized stablecoin.
This marks the first non-EVM chain on Synapse.
The goal is to connect $UST and Terra with each one of the 15 EVM chains Synapse support.
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This marks the first non-EVM chain on Synapse.
The goal is to connect $UST and Terra with each one of the 15 EVM chains Synapse support.
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The launch of $UST on Synapse also marks a big step forward for the protocol as they seek to expand support for non-EVM blockchains
This brings them one step closer to their long-term vision of becoming the most widely used and built upon cross-chain communications network.
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This brings them one step closer to their long-term vision of becoming the most widely used and built upon cross-chain communications network.
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As the world moves towards a multichain future, protocols like $SYN are going to become necessary.
Synapseβs interoperability between chains is huge. Synapse has a lot of room to grow.
And when they move over to POS I think even more people will set their eyes on $SYN.
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Synapseβs interoperability between chains is huge. Synapse has a lot of room to grow.
And when they move over to POS I think even more people will set their eyes on $SYN.
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That was it!
If you want to learn more about Synapse Protocol, I highly recommend you to check out this great thread by @0xG00gly
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If you want to learn more about Synapse Protocol, I highly recommend you to check out this great thread by @0xG00gly
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