Synapse Protocol

Provide Liquidity

Earn swap and bridge fees by facilitating layer ♾️ DeFi infrastructure.
Liquidity is, in many ways, the end-all, be-all for commerce. Without liquidity, value cannot be realized or exchanged, hamstringing markets and users. Within DeFi, the splintering of liquidity with the advent of alternative L1s, sidechains, and L2 solutions poses a seemingly intractable challenge with negative ramifications for slippage, user experience, and market stability. By providing liquidity within Synapse's nexus stablecoin or ETH pools on Ethereum or its various nUSD and nETH pools across the DeFi universe, you can earn yield while providing a solution to this problem.
Introductory video on providing liquidity at Synapse to earn SYN

Adding liquidity

  1. 1.
    Navigate to the "Pools" tab in the Synapse app
  2. 2.
    Make sure you are on the chain that you wish to deposit assets from - if your assets are not on the correct chain, use the Synapse Bridge to move them over
  3. 3.
    Input the amount of each of the stablecoin assets (or ETH, if on Arbitrum) you would like to provide as liquidity in the respective number fields
  4. 4.
    Click "Approve Token" to grant Synapse approval to manage the assets you are depositing
  5. 5.
    Click "Deposit" after any necessary approvals have been confirmed to provide liquidity You are not done yet - you still need to stake your LP tokens to earn yield.
Note: there is a bonus or penalty fee assessed for providing assets that are under- or over-provided in the pool. You can ensure that you will have no price impact by providing all of the assets in the pool in the same proportion, or ensure that you will have the greatest positive bonus by depositing the most under-provided asset.

Staking LP tokens

  1. 1.
    Once you have provided liquidity, navigate to the "Stake" tab in the Synapse app
  2. 2.
    Input the amount of LP tokens you would like to stake, or click the "Max" text above the number field to stake all the tokens you have
  3. 3.
    Click "Approve Token" to grant Synapse approval to manage your LP tokens
  4. 4.
    Click "Stake" after the approval has been confirmed to stake your tokens and begin earning yield