What is SyncSwap? SyncSwap is a decentralized exchange (DEX) developed on zkSync Era. SyncSwap offers users ease of use, low cost, and high security.
So what is SyncSwap? How it works. Let’s find out below in this article!
What is SyncSwap?
SyncSwap cryptocurrency overview
SyncSwap is a decentralized exchange developed on zkSync Era. SyncSwap brings users the ease of use, low cost, and high security of Ethereum.
SyncSwap will aim to build a Defi hub that aggregates many features and is easy to use with these features. Bringing products that are user-friendly and accessible to more people.
SyncSwap is designed as an exchange and liquidity generator on the protocol. The protocol is open source so it can be integrated with the zkSync ecosystem.
Mechanism of action
SyncSwap currently has some of the following outstanding features:
AMM
SyncSwap’s core product is a decentralized exchange (DEX). The floor’s design is highly customizable and evolves over time.
Using Multi-pool technology allows the integration of many different liquidity models, optimized in different cases, providing users with higher capital efficiency and more flexibility for liquidity providers, Pools can be aggregated in the future.
The core AMM is a pool and liquidity pool model, so it will take liquidity from the following 3 types of pools:
- Classic pools: Using the x*y=k algorithm, this pool supports almost all assets at a rate of 50%-50%.
- Stable pools: Supports price-stable assets, such as the USDC/USDT pair
- Concentrated Pool: This pool is similar to Stable Pool but supports dynamic prices.
Pool
Currently on SyncSwap there are 3 interfaces to access the user’s pool.
- Pools: Provides all pools available on the platform
- Positions: View and manage pool positions on the platform
- Wizard: Supports quickly finding the most suitable liquidity pools on the platform.
Launchpad
This feature is still under development and will be released in the future.
Smart Routers
Smart Router is the most important and beneficial feature on SyncSwap. It acts as a liquidity aggregator that aggregates different pools to provide the best prices.
SyncSwap’s Smart Router includes the following 3 mechanisms:
- Multiple pool models: Multiple liquidity models to aggregate complete liquidity.
- Multiple hops: Smart Route will transfer user transactions through an intermediary token to optimize liquidity.
- Path splits: Split transactions into parts to optimize exchange rates.
Farm
Any user can deposit assets into the pool to become a liquidity provider and earn trading fees from the liquidity. By providing liquidity, users will receive LP tokens and receive fees.
Transaction fees on SyncSwap will be about 0.1% on all transactions for. Of which 0.07% goes to the liquidity provider and 0.03% to the protocol.
Earning fees by providing liquidity also comes with the risk of temporary loss.
Dynamic Fees
Dynamic fees are one of SyncSwap’s interesting designs, transaction fees can be flexibly adjusted according to the market or user wishes. And dynamic fees will be divided into the following types of fees:
- Variable Fees: Variable fees allow for individual fee adjustments for different pool models and specific liquidity pools.
- Directional Fees: Directional Fees allow for different fees suitable for buyers and sellers
- Fee Discount: Is the discounted fee supported in the protocol.
- Fee Delegate: The project will delegate the decision on transaction fees of specific groups to partner ecosystems that want to create Pools on SyncSwap.
Development Roadmap
SyncSwap’s development journey is summarized as follows:
- April 9, 2022: SyncSwap runs testnet
- June 16, 2022: Project participates in Gitcoin round 14
- September 9, 2022: Project participates in Gitcoin round 15
- March 1, 2023: The SyncSwap project runs a test net on zkSync Era
- April 3, 2023: Officially running Mainnet on zkSync.
Core Team
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Tokenomics
Overview information about SyncSwap tokens
- Token Name: SyncSwap token
- Ticker: SYNC
- Blockchain: zkSync Era
- Standard:
- Contract:
- Total supply: 100,000,000 SYNC
Token Allocation
Update…
Token Release
Update…
Token Use Case
When sending SYNC tokens to the platform, you will receive veSYNC, the lock period will be from 20 days to 6 months and you will receive the following incentives:
- Be involved in platform governance.
- Receive a portion of the transaction fee.
- Reduced transaction fees.
Project Information Channel
- Website: https://syncswap.xyz/
- Twitter: https://twitter.com/syncswap
- Discord:
Summary
SyncSwap is currently the largest AMM DEX in the zkSync Era ecosystem. And people are very interested in the zkSync Era ecosystem, so the opportunity for SyncSwap to develop in the future is huge.