Synapse AMA Notes
What are the team’s current top priorities?
They are Releasing version 2 of the SDK & a new router contract, which will be used to integrate more chains and more tokens into Synapse
SynapseRouter.sol allows bridging of any token to any chain through one function call
The SDK will be built around it, so that developers can integrate the bridge in one function
Aggregators are working on integrating the new SynapseRouter.sol contract, which would increase volume to Synapse.
Relay has integrated, Socket (Bungee) & LiFi are currently a work in progress.
A Rest API is also built around the new Router contract, to make it easier for liquidity providers to analyze volume and liquidity.
This will also set the stage for concentrated liquidity in the future using Python & other languages.
Core focus has been on the Interchain Network, which consists of: Cross-chain messaging & Synapse Chain.
Code base for Cross-chain messaging will be open-sourced in the next few weeks (they’ve used private repos so far while getting things off the ground). Audits, bug bounties and incentivized testnet launch will follow.
Synapse Chain is on a similar timeline.
Launching the explorer.
Working on concentrated liquidity, to be able to give 1:1 cross-chain quotes across all chains.
Cross-Chain Transfer Protocol (CCTP) integration, which will reduce the need for liquidity and reduce SYN incentives.
What will the team do with the ARB received from the airdrop?
To be decided by the DAO, since the DAO received it in the treasury.
Why is the partnership with DeFi Kingdoms shilled so much? Are there better use-cases for messaging beyond video games?
DeFi Kingdoms was one of the first movers in gaming and had real users. Additionally, they already participated in multiple chains and expanded their community through it.
They are an important cornerstone of Synapse, and the DeFi Kingdoms integration is one of the largest integrations in all of crypto.
The protocol as a result of the integration has been used across one million users and has had over 1.6 million transactions.
Regarding other use-cases for messaging:
Bridging all types of assets, and not only liquidity-based transfers
Layer two app rollups (similar to Aevo), which can integrate messaging to allow for faster withdrawals
Avalanche Subnets and Polygon Supernets can use to expand their assets (including tokens, NFTs and data)
Governance proposals can be executed trustlessly across chains
Cross-chain lending, custody and prime brokerages
Apart from the emission-free USDC pool, has Nima Capital supplied anything else so far?
Nima has been providing $40m in liquidity over the past month since the proposal was executed.
Since then, they have also been rebalancing liquidity, and have built analysis tools around the REST API that Synapse built to track slippage between chains.
The focus for the future is towards concentrated liquidity. Nima and other liquidity providers will provide quotes around 1:1 to create an request for quote (RFQ) type of system.
This would lead to Synapse not relying on stableswap based slippage, and using other liquidity models which would allow to emulate order books. The end goal is no slippage bridging.
Synapse and Base:
Aurelius is personally very excited for the launch of Base.
The DAO could evaluate if Synapse should support Base
Aurelius expects that most large protocols will deploy on Base, as it was hinted by Coinbase a few months ago
zkSync and Synapse:
Proposal was passed some time ago to deploy on zkSync.
Team has to research the safety and compatibility of zkSync.
Will LP staking rewards be discontinued any time soon?
There is some confusion around current SYN emissions
Nima’s proposal is a two-part proposal, with the first one relating to fixed term liquidity. After this, and once concentrated liquidity contracts are finished, Nima (and other liquidity providers) will begin quoting 1:1 swaps.
The proposal did not suggest that SYN emissions would be stopped.
However, with concentrated liquidity live, it will be possible to reduce emissions by 50-80%, Since liquidity provided by locked liquidity (from Nima) and concentrated liquidity should allow for deeper bridge quotes.
There have been recent proposals on the governance forum that advocate to reduce emissions.
However, both the decision and the specifics are up to the DAO.
Why was there a name change to Synapse Labs:
The name was changed to formalize the teams contributions under a name, no changes are made to the protocol or DAO.
What happened with the partnership with Frax?
After the Harmony bridge hack and the collapse of Terra, Frax stopped pursuing a multi-chain strategy for their stablecoin.
Frax and Synapse still have a good relationship.
Are there any plans to add more utility to SYN token beyond governance?
Token utility depends on the DAO.
The interchain network is built to have the capability of being Proof of Stake.
The interchain network would be more secure through economic security around off-chain validators and fraud reporters.
Will Synapse continue to be EVM only for the foreseeable future, or is there any interest in integrating with IBC?
The interchain network is fully compatible with all blockchains, however initial focus has been EVM implementation.
This initial focus is based on Synapse dominating EVM volumes and additionally since there are obvious value overlaps with Synapse Chain being an Ethereum rollup and the messaging system being Optimistic.
The DAO should evaluate future initiatives for non-EVM chains depending on usage and difficulty.
Why did Max Bronstein leave?
Max is still part of the community, but decided to focus on other things.
Nothing to do with past few months or what will be coming in next few months.
What results have been seen in terms of volume and fees since Nima Capital deployed capital?
Tighter spreads on the chains that are used the most
Increased usage
Increased focus on quoting on more of the long-tail chains to create more competitive quotes against other bridges
When concentrated liquidity contracts are ready, results will become clearer
Written by @tripleboccaccio
