Synapse bridges blockchains by offering an extensible internetworking protocol that supports assets, smart contract calls, and more. Using Synapse, blockchains can easily and securely interact with each other. Developers can build truly cross-chain applications, including cross-chain DEXs, lending platforms, margin systems, derivatives markets, yield aggregators, and more.
Description of the Synapse site
Today, users can use it to exchange assets between the most widely used EVM-compatible blockchains. Synapse currently maintains the highest liquidity of any other compatibility solution.
When the network receives confirmation of chain events in the original chain, the necessary wrapper assets can be created without permission directly on the network. However, users often would like to receive bridge assets that are native to another destination chain that is connected to, but different from, the Synapse network (e.g. ETH, DAI, etc.). In this case, Synapse AMM is called to perform the necessary transactions during the connection process.
Work features:
| 1 | The network has no leader. It provides security by ensuring that each validator runs the same process when receiving events in the chain. |
| 2 | Once two-thirds of all validators have collectively signed the same transaction, using their individual key, the network reaches a consensus and sends the transaction to the destination chain. |
Synapse AMM pools use a stable exchange algorithm to evaluate transactions and encourage asset rebalancing during the exchange and connection process. These pools are deployed on every chain that the Synapse network is connected to. This ensures fast and reliable liquidity flows between all such chains. Essentially, this creates dynamic pricing for all assets, backed by the Synapse Network, based on changing user demand, constantly moving capital to the most desirable ecosystems. As a pool in one destination chain becomes unbalanced due to unidirectional capital flow, arbitrageurs are incentivized through AMM pricing to rebalance the pool through other inputs and outputs, providing protocol revenue fees in the process.
SYN token
SYN — an asset that supports the Synapse ecosystem. It is currently being used to vote on community governance through the SynapseDAO, as an incentive for liquidity providers that power the protocol's cross-chain functionality, and as a subsidy to pay for gas, consumed by network validators to secure transactions on the network.
Any SYN token holder with more than 50k tokens can submit a snapshot offer to the Synapse DAO. Thus, SYN helps to obtain community consent for changes to smart contracts at the protocol level, as well as for actions, paid from the DAO treasury. This includes frequently re-evaluating SYN's emissions level and, if ever needed, changing its supply cap.