Everything you need to know about Synapse.
Synapse is a universal cross-chain liquidity network that connects blockchains by offering an extensible cross-chain communication protocol that supports assets, smart contract calls, and more. By leveraging Synapse, blockchains can easily and securely interoperate with each other and developers can build truly cross-chain applications including cross-chain DEX, lending platforms, margining systems, derivatives markets, yield aggregators, and much more.
What chain is Synapse located on? Synapse hosts liquidity pools on every chain that it has a bridge to, but the "nexus" stablecoin and ETH pools that underwrite the nUSD and nETH that facilitates this cross-chain functionality are on Ethereum. The SYN token can be bridged to any chain integrated with Synapse, while retaining its ability to be used in governance.
In the future, Synapse will launch its own blockchain.
What is nUSD? nUSD, or "nexus" USD, is a cross-chain bridge asset fully backed by the nexus stablecoin liquidity pool on Ethereum that consists of DAI, USDC, and USDT. nUSD is used to enable cross-chain swapping of assets.
What is nETH? nETH, or "nexus" ETH, is a cross-chain asset pegged to ETH and fully backed by the nexus ETH on Ethereum that consists solely of ETH. nETH is used to enable fast bridging of ETH to and from L2 networks such as Arbitrum.
Bridge fees The Synapse bridge by default charges .05% per bridge transaction, with a minimum fee that is chain-specific and dependent on the average gas fees on that chain. Note: You will also receive enough of the native token when bridging to a non-ETH chain to perform 1-2 swaps upon arrival.
What pools can I provide liquidity for? There is currently one incentivized pool on every chain that Synapse has integrated into its protocol, and two nexus pools on Ethereum. These include the nexus stablecoin and ETH pools, nUSD pools on Arbitrum, Avalanche, Binance Smartchain, Boba, Harmony, Fantom, and Polygon, and the nETH pools on Arbitrum and Boba.
The nexus stablecoin pool consists of DAI, USDC, and USDT, and its LP tokens are used to back 1 cross-chain nUSD for every USD of value contained in the pool. The nUSD pools on integrated chains consist of nUSD, USDC, USDT, and DAI (or BUSD).
The nexus ETH pool consists solely of ETH (for now), and its LP tokens are used to back 1 cross-chain nETH for every ETH of value contained in the pool. The nETH pool on integrated L2 networks consist of nETH and ETH.
Swap fees Every Synapse stableswap pool charges small fees per swap which are currently split 40% to LPs, 60% as a admin fee for the protocol. Exact swap fees depend on each chain and ensure that continues to offer the most competitive swap on every chain it is operating on. Synapse is able to do so as the protocol combines both a bridge and an AMM and therefore as a greater capital efficiency than other stableswaps.
What is the utility of SYN? SYN is used as an incentive for liquidity providers, for voting for community governance decisions that impact smart contract upgrades or expenditures from the DAO treasury, and as the native token used for transaction fees on the Synapse network.
SYN token holders are not granted any decision-making rights of the business or ownership right in any of the companies building the protocol and are not granted any right to claim distribution of profit. SYN was released via a fair launch and as thus, has no single issuer that is involved or plays any role in changing the value of the SYN token.
Introductory video on how to buy SYN at Trader Joe DEX on Avalanche
What is the total/max supply of SYN? The current max supply of SYN is set at 250,000,000, but can in theory be changed in the future through community discussion and an ensuing governance vote.
To stake your ETH, provide liquidity at https://synapseprotocol.com/pools in the Arbitrum ETH pool, then stake the resulting nETH LP tokens at https://synapseprotocol.com/stake. For SYN-ETH, provide SYN and ETH liquidity on Sushiswap and stake the Sushi-LP tokens you receive at https://synapseprotocol.com/stake.
Additionally, SYN staked on selected DEX that have SYN liquidity (such as Trader Joe on Avalanche or IDEX on Polygon). However, any incentive provided on those pairs is to the discretion of the DEX.
Do I need to deposit specific stablecoins to enter the nUSD LPs? No, you can deposit only one stablecoin if you want, or any combination of two stablecoins. Note: you will receive a bonus for depositing under-provided assets and pay a fee if you deposit over-provided assets. You can insure that you are not paying any penalty fee by depositing an equivalent amount of the stables in the pool at the same time.
Where can I stake my SYN single-sided? There is currently no option to do this. However, it is expected to become possible upon the launch of the Synapse Chain, or potentially earlier should a single-staking option be implemented to test future demand for PoS.
What are the rewards for providing liquidity, and how are they distributed? Rewards come in the form of the the SYN governance and utility token. Currently, emissions are distributed as such on a weekly basis
Stable pools: 20,160 - nUSD pool on Avalanche 19,958 - nUSD pool on Arbitrum 17,388 - nUSD pool on BSC 15,875 - nUSD pool on Fantom 15,120 - nUSD pool on Polygon 7,056 - nUSD pool on Optimism ETH pools: 10,080 - nETH pool on Avalanche 13,305 - nETH pool on Arbitrum 5,040- nETH pool on Optimism Other: 59,038 - SYN/ETH Sushi LP on Ethereum
Total: 197,387 - per week on all chains
As of 10-Oct-2022, circulating supply was 187,934,962 implying 5.5% inflation per year
How is the APR of each pool calculated? APR = (SYN emissions x SYN price x Reward weight of the pool) / Total Value Locked in the pool Note: Displayed APY assumes manual daily compounding of rewards.
Why can't I claim my rewards? Please notify the team either on Telegram or in Discord (in the support section). It is possible that the rewards linked to the minichef v2 contract on that particular chain are empty. Should it be the case, it will typically be refilled within 24h-48h as this requires multisig coordination