Synapse Protocol
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FAQ
Everything you need to know about Synapse.
What is Synapse?
Synapse is a cross-chain layer ∞ protocol that allows decentralized, permissionless transactions between L1s, sidechains, and L2 ecosystems with minimal friction or slippage.
When did Synapse launch?
August 28th, 2021.
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.
Synapse Bridge
What is nUSD?
nUSD, or "nexus" USD, is a cross-chain stablecoin 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 liquidity pool on Ethereum that consists solely (for now) 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.
AMM
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 .04% per swap, and these fees are currently split - 40% to LPs, 60% as a admin fee for the protocol.
Note: As of 24/09/2021 a community proposal to divert 60% swap fees to the protocol treasury as an admin fee has passed a governance vote and is in effect.
The SYN token
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. In addition, a portion of protocol fees are directed towards periodic SYN buybacks.
What is the SYN token contract?
The token contract for SYN differs depending on the network in question, and can be found below:
Ethereum: 0x0f2D719407FdBeFF09D87557AbB7232601FD9F29
Arbitrum: 0x080f6aed32fc474dd5717105dba5ea57268f46eb
Avalanche: 0x1f1E7c893855525b303f99bDF5c3c05Be09ca251
Binance Smartchain: 0xa4080f1778e69467e905b8d6f72f6e441f9e9484
Fantom: 0xE55e19Fb4F2D85af758950957714292DAC1e25B2
Harmony: 0xE55e19Fb4F2D85af758950957714292DAC1e25B2
Polygon: 0xf8f9efc0db77d8881500bb06ff5d6abc3070e695
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 be changed in the future through community discussion and an ensuing governance vote.
What is the emission schedule for SYN?
As a result of SIP-5, current SYN liquidity mining programs have had their emissions altered to reflect usage of each pool being supported, with some of these changes being phased in over time. The list of changes can be found in the snapshot proposal and the rationale for those changes can be found in the proposal forum post. Eventual emissions are planned to stabilize at 725K SYN per week, though this may change if the usage patterns of Synapse pools changes. Emissions can be changed in the future in response to opportunities that require incentivization, and as a result of community governance.
Staking
How do I stake my liquidity?
To stake your stablecoins, provide liquidity at https://synapseprotocol.com/pools on your chain of choice, and then stake the resulting nUSD LP tokens at https://synapseprotocol.com/stake.
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.
For SYN-AVAX, provide SYN and AVAX liquidity on Trader Joe and stake the Joe-LP tokens you receive in their farm for JOE rewards.
There are other opportunities for SYN liquidity forthcoming on Synapse-enabled chains from local protocols, as well, with their own liquidity mining incentives.
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, but stay tuned.
Liquidity mining
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, which is distributed every block (3 seconds), until it reaches its total 250,000,000 supply.
The initial emissions schedule emits 725,000 SYN per week, providing plenty of runway for the protocol to incentivize necessary liquidity and reward validators for contributing to the security of the network. If and when it is necessary to change the emissions rate of the protocol to take advantage of new market conditions or ecosystem opportunities, the protocol retains the flexibility to do so after discussion with the community.
Currently, emissions are distributed as such on a weekly basis:
70000 - nUSD pool on Arbitrum
70000 - nUSD pool on Avalanche
77000 - nUSD pool on BSC
78000 - nUSD pool on Fantom
30000 - nUSD pool on Harmony
70000 - nUSD pool on Polygon
89000 - nETH pool on Arbitrum
25000 - nETH pool on Boba
45000 - nETH pool on Optimism
85750 - SYN/ETH Sushi LP on Ethereum
85750 - SYN/ETH Sushi LP bonding via Olympus Pro on Ethereum
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.
Security and analytics
Is the code audited?
Specific parts of the Synapse smart contract code have been audited, others are still in progress.
- The Synapse Bridge smart contracts are undergoing multiple audits
- The Synapse Network validator code is not yet audited
Where can I see TVL and volume data?
Analytics tools are being developed by the community - you can join in the development and demo current tools in the #dnm channel of the Synapse Discord.
Last modified 13d ago