Good Morning Saints,
Hope you’re having a wonderful weekend?
If you’re reading this, you’re always one of the chosen Saints and you’re special.
Now, let’s get to the topic of the day.
Grab a cup of Coffee and let’s chill.
All ye DeFI Enthusiast, If you missed Synthetix and you’re seeing this now, you’re very early.
Today’s Alpha is on @synthrdefi which is an omnichain synthetics protocol being built on Mainnet, APTOS SUI and SEI
3 birds 1 stone. (synthetics, Omnichain and Synthr DeFI)
If it’s too good to be true, then it probably is.
In crypto, everything follows narratives, Missed #Realyield Narratives, then you wouldn’t want to miss on synthetics
Here’s a brief thread on understanding how synthetics work if you don’t know.
Synthr DeFI is taking synthetics to the next level, Here’s why?
Synthr DeFI allows users to mint and trade on-chain derivatives of various financial assets which can be stocks, commodities, bonds e.t.c
Synthr DeFI is gradually living into the future which will be multichain. Omnichain unlocks cross-chain composability and Synthr DeFI is making this a reality.
If you don’t have a deep knowledge on Omnichain and Multi-chain, then see this
Synthr is the first synthetics protocol to be built on the hot new L1 chains and which is also available on mainnet.
Synthr DeFI Mechanism
Synthr DeFI aims to achieve trading of synthetic assets by “minting and burning” with its slippage free DEX “synthswap” which will tend to achieve more capital efficiencies than traditional AMMs.
Synthr DeFI is also part of the Real yield party and it tends to achieve this through its
Stability Pool (Deposit syAssets and earn yield in form of liquidated collateral).
Liquidity Pool
Short Farm Vault (generate returns by taking advantage of the price arbitrage between a higher DEX price and the lower oracle price of an syAsset).
Long Term Vault (Generate returns through LP on syAssets trading on DEXes and through LP incentivization programs).
Hedge Pool/Delta Vault (Since minting syAssets creates new debt, users would be able to deposit syAssets, it will be swapped and rebalanced every 2 days to maintain accurate composition, then deposited into the stability pool to generate returns).
Synthr asset CDPs
syAssets Collateralized debt position are tokens that represents a form of collateral for minited assets which is overcollateralized and its ratio is at least 150%
Users will be able to deposit ETH as collateral and mint syAssets, let’s say a user deposits ETH and mints syUSD which can used to buy other syAssets, lend or deposit into vault to earn yield.
Through this steps, Users can utilize syCDPs to its full potential
Yield Bearing Collateral:
Users stake LP yield assets E.g ETH/DAI curve LP as collateral to mint syUSD, earn yields from it and also LP rewards from curve and from price appreciation.
Debt Pooling Model:
This model works by Users locking their CDP and minting syAssets, and the users creates a debt in the system by doing so,
This eliminates the need for AMMs and syAssets can be swapped with each other in the debt pool without slippage.
SNX approaches this model but has limitations since stakers are shareholders of the global debt pool and are limited to staking only one asset and if a user swaps sUSD for sETH, since sETH is volatile and if it increases, it turns affect the collateralized asset which exposes the User to liquidation risks.
So, Synthr DeFI solves this by allowing users to stake highly liquid asset (USDC, ETH or USDT) and not limited to staking only one asset.
These highly liquid assets or CDP can be used to mint syAssets and in turns this favours the user by minimizing the risk of liquidation prior to the former.
Also Synthr DeFI stakers will share the Total Debt Pool and not meeting the CDP Collateralized ratio (150%) will result in liquidation.
Synthr solves this by implementation of the Delta Neutral Strategy/Hedge pool to protect users against debt pool risk.
Synthr DeFI Governance Model
Synthr will have a token $SYNTH and its token is also the governance token and it uses the veModels (voted escrow), The longer you lock, the more weight a user gets in voting power and boosted staking rewards.
Synthr aims to fully achieve being a community led protocol and its revenue distribution is as follow:
10% for fund protocol development.
20% for buy back and burn program (to counteract LP incentive inflation).
20% to add liquidity to DEXes to build up a non-fleeting Protocol-Owned-Liquidity (POL).
50% to veSYNTH holders.
As the protocol scales and SYNTH emission-led rewards are phased out,
the fee distribution will be as follow (To be implemented 12-18 months after launch):
10% for protocol fund development
20% to veSYNTH holders
70% to LPs
Synthr Incentivized Incentivized Testnet will be coming live on Q4 2022 and Synthr also raised some funds from VC, Announcements to be made Soon too.
Stay Tuned for the next thread on onboarding users into Synthr when the Testnet is live.on Q4, 2022.
Also Synthr raised funds from VC which hasn't been announced yet.
Stay tuned for both announcements and the next thread will be coming when the Testnet is live.
Thanks for reading and if you like it, do leave a feedback and forward to your Friends, There is love in Sharing.
Permissionlessness
Founder, The Saints Creed