Cross-chain AMM
The engine behind Synapse's cross-chain infrastructure.
When the Synapse Network receives confirmation of on-chain events on a source chain, the requisite wrapped assets can be permissionlessly minted directly on the network. However, users often would like to receive bridged assets native to another destination chain that is connected to but distinct from the Synapse network (e.g., receiving native ETH on Arbitrum). When this is the case, the Synapse AMM is called upon to execute required transactions during the bridging process.
Synapse AMM pools employ a stableswap algorithm to price transactions and incentivize asset rebalancing in the process of swapping and bridging. These pools are deployed on each chain that the Synapse Network is interconnected with, enabling rapid and trustless liquidity flows between all such chains.
In effect, this creates cross-chain dynamic pricing of all assets supported by the Synapse Network based on fluid user demand, constantly relocating capital to the most desirable ecosystems. As a pool within a single destination chain becomes imbalanced due to one-directional capital flow, arbitragers are incentivized via the AMM's pricing to rebalance the pool through other on- and off-ramps, in the process providing fees for protocol revenue.
nUSD, or "nexus" USD, is a cross-chain stablecoin fully backed by the nexus stablecoin liquidity pool on Ethereum consisting of DAI, USDC, and USDT.
The nexus stablecoin pool is a liquidity pool incentivized on every destination chain Synapse offers. LPs accrue value through bridge fees and SYN emissions, giving end users access to deep liquidity and low slippage on stable pairs
Synapse's nUSD multi-chain stablecoin, paired with native chain stablecoins
When a stablecoin is bridged between Synapse-enabled chains, the funds are automatically converted to nUSD, and bridged to the destination chain. Once there, this nUSD can be auto-swapped to that chain's native stablecoins using the local nUSD pool.
nETH, or "nexus" ETH, is a cross-chain asset pegged to ETH and fully backed by the nexus ETH liquidity pool on Ethereum that consists solely (for now) of ETH.
Synapse's nETH multi-chain ETH-pegged asset, paired with native chain WETH
nETH is used to enable fast bridging of ETH to and from L2 networks such as Arbitrum, Boba, and Optimism.
In its first iteration of the protocol, Synapse only supports cross-chain swaps in stables (for example swapping BUSD on the BNB Chain for USDC on Fantom).
However, as the protocol matures, Synapse will launch a cross-chain router offering the most robust multi-chain swapping experience in DeFi.
Last modified 8mo ago