Synapse Protocol

Synapse Protocol (SYN) Introduction

Synapse is essentially a cross-chain liquidity protocol that allows users to bridge assets across different chains. To fully engage with the multi-chain narrative, users should familiarize themselves with different cross-chain bridges, and Synapse represents one of the user-friendly bridges. According to data from DefiLlama, Synapse currently has a total value locked (TVL) of $204 million, ranking in the top ten across the entire ecosystem.

What is Synapse’s goal?

Synapse aims to solve the problem of cross-chain communication. Blockchains are inherently isolated networks, each running on its own code system, security measures, and validation methods. This makes it challenging for blockchains to interact with one another. Users trying to operate across different blockchain networks might encounter issues, such as their assets not being available on the blockchain used for specific games.

This is where Synapse comes in. By facilitating cross-chain interactions, its communication protocol enables users to use any chain they desire. This way, users can work with multiple chains without worrying about moving assets and information between systems.

How does Synapse work?

The Synapse chain is the core of the entire cross-chain system. This source chain serves as the data availability layer and can send information between any external chains connected to Synapse tools and protocols. It is an Ethereum-based optimistic rollup, making it fast, efficient, and secure.

The Synapse system is designed to be completely trustless and permissionless. Anyone can run a node to secure the network, while checks and balance systems validate messages. The Proof of Stake (PoS) consensus mechanism requires validators to temporarily lock tokens in smart contracts, so they must adhere to network rules or risk losing their funds.

Features of Synapse

Synapse’s cross-chain transfers have many applications in the blockchain space. Here are the primary ways users benefit from Synapse services.

Cross-chain Bridging

Synapse’s cross-chain bridge allows users to send assets between different chains. Users simply select the desired network, enter the amount of tokens to send, and confirm the transaction to easily transfer assets. The bridge works with over 15 chains to enable both wrapped and native asset bridging. Synapse Bridge is one of the most used cryptocurrency bridges, helping transfer over $20 billion in assets in recent years.

Swaps

Synapse swaps support asset exchanges between specific chains. Swapping assets is not just about moving assets from one chain to another. User funds are fully converted into native tokens on different chains, making the swapped funds more versatile than bridged funds.

Liquidity Pools

Synapse’s liquidity pools help users provide liquidity while offering opportunities to earn rewards. Users can temporarily lock their tokens in Synapse’s liquidity pools to provide liquidity tokens, facilitating faster decentralized finance (DeFi) transactions. By using these tokens, users can earn interest and receive their initial funds back after the transaction period. Synapse’s time-weighted reward system allows users to earn up to 26% annualized returns.

Staking

Users can secure Synapse protocols and other DeFi systems by staking. After temporarily locking tokens, users can provide the necessary funds for PoS validation. Staking is also a way to earn passive income, with returns up to 26%.

Explorer

Explorer allows users to view all cross-chain transactions on Synapse. This tool is useful for investors who want to monitor which chains have the most activity and for developers who need to observe project performance.

Interchain Network

The Interchain Network is a complex cross-chain communication and settlement network. Developers can access this platform to ensure smoother operation of their products. For example, AMMs can be used for cross-chain liquidity aggregation, and private key management systems can be used to secure multiple wallets.

Solana Bridge

This bridge is dedicated to transferring assets between the Solana ecosystem and other chains. It supports transfers of ETH, USDC, WETH, and wSOL.

Synapse Roadmap

Since 2021, Synapse has made extensive adjustments to its system, designing various useful tools and expanding its technology to work with multiple blockchains. By the summer of 2024, Synapse’s main focus is to further increase the number of connected chains so that users can transfer data across different chains. Additionally, the company is looking for ways to increase the number of users and Web3 projects using its services.

Ultimately, Synapse aims to launch an incentive program to encourage more people to rely on its services.