What is Synonym Finance? Synonym Finance is a Lending & Borrowing platform built on Wormhole technology. So what is interesting about Synonym Finance that attracts so many users? Let’s find out together in the article below.
To understand more about Synonym Finance, people can refer to some of the articles below:
- What is Lending & Borrowing? The Essential Borrowing and Lending Puzzle in DeFi
Synonym Finance Overview
What is Synonym Finance?
Synonym Finance is a Lending & Borrowing platform built and developed by multichains such as Arbitrum, Optimism or Ethereum with some of the following characteristics:
- Using Wormhole’s Cross-chain technology can help users borrow and pay on many different Blockchains, not necessarily a single Blockchain.
- Is a Lending Credit platform that helps borrowers optimize their loans.
Hub & Spoke Design
Synonym Finance’s architecture is uniquely built based on the Hub & Spoke model using xChain technology of the Wormhole Technology Stack. The Hub & Spoke model is different from the old point-to-point model. In the old point-to-point model, one of the biggest problems of Cross-chain Lending & Borrowing platforms is that the interest rates of the same asset on many different Blockchains are not synchronized. This may affect liquidation or user experience.
Using Hub & Spoke to process all transactions will solve all outstanding problems in the point-to-point model. User borrowing and lending will be processed using messaging technology. The operating model will be as follows:
- Step 1: User creates a transaction on any Blockchain that Synonym Finance supports.
- Step 2: The user’s request will exist as a message and be transmitted to the Hub.
- Step 3: The Hub plays the role of the operations center to resolve all transactions sent to the Hub in the form of messages.
Synonym Finance uses Pyth Network’s Oracle service to provide accurate, safe and secure pricing.
Liquidation of assets
Asset liquidation will be implemented by Synonym Finance on Arbitrum. Although liquidation can take place on Spoke more easily and simply, there are also certain disadvantages.
Development Roadmap
Synonym Finance’s development roadmap is divided into a number of different stages such as:
- Community development: There are community startup programs that make positive contributions to the development of the project.
- Launched Testnet: Launch Testnet product and promote users to use the product.
- Mainnet and Token launch: Officially mainnet and establish a Tokenomics model with many diverse strategies such as Stake, Liquidity Mining,…
- Launched version V2: Integrate more different Blockchains and integrate Circle’s CCTP technology to support USDC.
Investor
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Core Team
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Tokenomics
Information about Synonym Finance tokens
- Project name: Synonym Finance
- Code: SYNO
- Token classification:
- Blockchain:
- Smartcontract:
- Total supply: 800,000,000
Token Allocation & Release
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Token Use Case
- vlSYNO: Users participating in the protocol can optionally lock up 10% of their total deposits as LP Balancer 80/20 (SYNO-ETH) for up to 1 year to receive SYNO rewards.
- tSYNO: Token NEWO when converted will receive tSYNO. Staking tSYNO will receive protocol revenue fees and can be unstaken at any time.
- RCT: Rewards early supporters of the protocol and can receive protocol revenue sharing.
Exchanges
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Project Information Channel
Summary
Synonym Finance is one of the Lending & Borrowing protocols that has many breakthroughs in the DeFi market. Hopefully through this article, everyone can understand more about what Synonym Finance is?
