# Overview A universal cross-chain credit layer for busy DeFi Professionals. Borrow, lend and earn from any chain. ## Introduction Syno is a universal cross-chain credit layer for busy DeFi Professionals. We’re building the cross-chain lending and borrowing experience that users deserve, powered by the Wormhole cross-chain technology stack. Users can earn yield, borrow, repay and withdraw from any chain, all from a single unified interface. Our markets are truly cross-collateralized, meaning users can borrow on destination chains with source chain collateral, all without using other applications to wrap, unwrap and swap cross-chain assets. We also leverage the unique strengths of both Arbitrum and Circle’s CCTP-enabled USDC to improve the performance of our overall implementation. ## The State of Cross-Chain Lending The cross-chain lending sector is extremely underdeveloped. DeFi natives and industry participants have spent significant time and resources building out powerful lending primitives. They’ve done the same with cross-chain infrastructure. At the same time, few teams have managed to deliver a cross-chain money market that is sufficiently easy to use while offering access to chains and assets that users care about. That said, there has been great progress made in cross-chain DeFi in the last year. Leverage focused and stablecoin centric omnistable protocols have gained significant mindshare and are close to major upgrades and launches. That said, Syno still sees a significant gap for a highly flexible cross-chain money market to acquire users in both new and existing ecosystems. We’re building Syno to be a highly flexible cross-chain lending protocol that can deliver liquidity and borrow volumes into new ecosystems. We believe that inter-rollup and appchain specific transactions will take an increasingly large share of overall DeFi activity (especially among power users) and are building for this future today. ## Why Wormhole We’re building Syno on the powerful Wormhole xChain technology stack. The xChain stack enables seamless cross-chain transactions via scalable and secure generalized messaging technologies. Wormhole is supported by the Wormhole Foundation which is committed to aggressively growing the Wormhole ecosystem and supporting integrations across dozens of chains. We selected Wormhole over competing messaging technologies based on the following three dimensions: 1. **Transparency**: Wormhole is entirely open source and is being built in the open. Competing messaging solutions are not nearly as transparent and have opaque validation libraries or mechanism designs throughout their cross-chain messaging flow. Wormhole’s Guardian system is well understood and is built entirely in the open. 2. **Security Improvements**: Wormhole has made enormous improvements to the overall security practices with the organization. Moreover, new features including global accounting, rate limiting and system Governors have been implemented, further improving the security of the system. In our view, all previous risks have been mitigated. 3. **Connectivity**: Wormhole is currently connected to 29 blockchains with multiple in-progress candidates at any given time. Syno is focused on inter-rollup transactions and is aligned with the overall push towards total modularity. Wormhole’s high degree of connectivity and plans to connect even more rollups to one another is extremely valuable to Syno from an architecture perspective. 4. **Catalysts**: The Wormhole ecosystem is on the verge of significant growth and is bolstered by a major ecosystem push from the Wormhole Foundation. Syno is positioned to be a leading protocol in this ecosystem and will directly benefit from these catalysts. These and other core decision factors are mirrored in Uniswap’s official assessment of bridging technologies for use in Uniswap’s cross-chain deployments, available [here](https://uniswap.notion.site/Bridge-Assessment-Report-0c8477afadce425abac9c0bd175ca382). TLDR: Wormhole is an open source and well understood messaging layer with significant growth potential on the horizon.
# Protocol Architecture A unique hub & spoke money market architecture. ## Protocol Design ### Hub & Spoke Model Syno is built on a hub and spoke architecture that allows the money market to scale effectively across *n* chains. To fully appreciate the merits of this model we must understand an alternative, the point-to-point model. A point-to-point model of cross-chain borrow and lending could keep every chain identical in function and allow accounting between any pair of chains. Assets would be kept on native chains, without any wrapping, and Wormhole messages would be used to facilitate only accounting between chains. A schematic for this type of design can be seen below. Meanwhile, a hub-and-spoke model features a single hub chain that functions as either a centralized accounting or liquidity layer, with different spoke chains sending either accounting messages (centralized accounting) or wrapped token transfers (centralized liquidity) upon token movements to the hub. The hub then serves as the authoritative source of state information, and any state stored on spokes is meant to be a copy of the ground truth state stored on the hub. Below, we motivate the hub-and-spoke model by examining some challenges with other models.

Process flow.

The point-to-point model is relatively simple in schema, but interest rate calculation dependencies actually make the pattern a lot more complicated to handle in practice. The interest rate the protocol charges for a loan or pays out for collateral deposits is continually changing as users make deposits and withdrawals. The protocol needs to maintain a state of truth that must reflect the continually updating user behavior. There are 2 relevant interest indices: one for each asset, the borrowed asset on Ethereum and the collateral asset on Solana. The main challenge with this federated cross-chain borrow-lend model is that both elements of state need to be tracked on both chains. In the model with more than 2 chains, state needs to be tracked and synchronized on all chains. This is because when an *initializeBorrow* is successfully called from Solana, that instruction must issue a Wormhole message indicating how much of the borrow asset on Ethereum the user can withdraw. If the user calls completeBorrow on Ethereum with that Verified Action Approval, they must be able to withdraw that much of the asset. Similarly, when a user pays back debt on Ethereum (either by repaying their own loan or liquidating someone else’s vault), they must get back a VAA indicating how much of the collateral of the vault on Solana they can withdraw. They must then complete the repay or liquidate by taking that action on the source chain Solana. Throughout this time, Solana holds the “official” interest index for the collateral asset and its perception of the interest index for the debt asset, while Ethereum holds its perception of the collateral asset interest index and the “official” debt asset interest index. The fundamental issue is that in a single blockchain, state can be atomically updated; in a lending protocol context, both indices are tracked in the same program on the same chain, so they can be updated atomically without any other transactions coming in between. In the case of cross-chain borrow-lend where state is being tracked across multiple chains, synchronization cannot happen atomically, so either there is room for missequencing and error or enforcement of sequential processing of VAAs must be respected. An alternative to this is to have borrow-lend operations take place on one designated hub chain that serves as the central accounting layer for the whole cross-chain ecosystem. Suppose that layer is on Arbitrum. Consider a user who wants to deposit ETH on an Ethereum spoke and take out a loan of SOL on a Solana spoke. Then, the schematic looks as follows:

Borrowing & lending flow.

This is better than the previous approach of deposits and withdrawals done directly on different chains, because now there is no state asynchronicity problem. The user does need to wrap assets and then deposit those wrapped assets on chain X to make deposits, and a withdrawer needs to take an action on chain X and then unwrap their assets, but all of this is configurable on the frontend. Because all accounting is done on a single blockchain, state is atomically updated, and there is no potential for asynchronicity. In essence, the ability to atomically execute and update makes it far easier to maintain this design of the protocol than a version where borrowing and lending happens on different chains. # Optimistic Finality ## Protocol Optimization **SYNO V1 Structure**: * Protocol exclusively uses the Wormhole Token Bridge to send messages and values from and to the Hub (Arbitrum). * Due to a lack of configurability of the Token Bridge finality assumptions, transactions can only be settled with full-finality substantially crippling UX. * The current codebase is limited by the Arbitrum contract size limits and requires a change in favor of a modular structure to allow for a scalable design. **SYNO V2 Structure:** * After a thorough audit, deploy changes to the core contract logic to allow for Spoke asset-custody and use of instant finality messages avoiding the requirement of always using the Wormhole token bridge. This change gives users the option to have sub 1-minute transaction finality for any action on any chain. Optimistic Finality is expected to be a large revenue driver, with a proposed 0.40% fee on the notional asset value. * After the thorough audit, deploy changes the core contracts to a scalable and modular design that allows for faster feature upgrades and long term scalability. With careful research on block re-org risk alongside our partners at [Gauntlet](https://www.gauntlet.xyz/) we have concluded the long term safety and sustainability of utilizing instant finality for message transfer within Syno at a fee of at least 0.4%. **Optimistic Finality Deposits & Withdraws Flow**
# Chains & Assets Navigate to the Markets page for the most up to date information ## Chains Synonym Finance implements a [Hub and Spoke architecture](/documentation/documentation/protocol-architecture), with the hub on Arbitrum and Spoke Chains listed bellow. | Chain | Type | | -------- | ------------ | | Ethereum | Spoke | | Arbitrum | Spoke & Hub | | Optimism | Spoke | | Base | Spoke | | Scroll | Spoke | | Solana | Spoke (Soon) | Syno Finance is rollup and modularity focused. We will prioritize rollup ecosystems with promising DeFi activity for new chain deployments with EVM and non-EVM environments. Expansion is bounded by [Wormhole Supported Chains](https://wormhole.com/blockchains/). ## Assets - November 2024
# Circle CCTP CCTP-enabled USDC supercharges stablecoin liquidity across the Syno protocol. ## Cross Chain Transfer Protocol Circle's [Cross-Chain Transfer Protocol (CCTP)](https://www.circle.com/en/cross-chain-transfer-protocol) is a permissionless on-chain messaging protocol that facilitates USDC transfers securely between blockchains via native burning and minting. Syno leverages CCTP for native Minting and Burning of USDC, allowing for cross-chain pooling of liquidity across all supported spokes. As such, supplied USDC from any network gets pooled on the Arbitrum Hub, unifying liquidity and directly tackling USDC fragmentation. As an example, if USDC is supplied on Optimism (Spoke) is it instantly bridged to the Arbitrum (Hub), with Borrowers on all other supported networks being able to borrow from this unified pool. This results in more efficient and predictable asset utilization and interest rates.

Supercharged stablecoin liquidity.


# Protocol Features Power tools for power users. Now live. ## Supplying Browse to the "Portfolio" or “Markets” pages and click on "Supply" for the asset you want to supply. Select that chain from which you would like to supply, and the amount and submit your transaction. Once the transaction is confirmed, your supply is successfully registered and you begin earning interest. Note that due to the cross-chain nature of Syno transactions need to be relayed to the Hub through the Wormhole messaging protocol, thus transactions originating from chains other than Arbitrum could take up to 20 minutes. We intend to dramatically reduce this time in the near future using different methods of optimistic bridging and delivery.

Markets page

**Supplying USDC** Due to the native integration with Cross-Chain-Transfer-Protocol (CCTP) from Circle, Syno is able to facilitate Supply transactions from any supported chain. As an example, if a user would like to Supply USDC on Arbitrum but their USDC balance is on Ethereum, they would be able to facilitate the Bridging and Supply transaction all in one bundle. No need to Bridge and Deposit! You can learn more about Circle's CCTP [here](/documentation/documentation/protocol-architecture/circle-cctp). **Collateral** All supplied assets are automatically used as collateral, as we currently do not support choosing collateral assets. If you do not want to use certain assets as collateral, but would still like to supply them, please use a different wallet. **Collateralization Ratio** Collateralization Ratio is the numeric representation of the safety of your deposited assets against the borrowed assets and its underlying value. The higher the value is, the safer the state of your funds are against a liquidation scenario. At collateralization ratio of 100% you will be liquidated. **How much will I earn?** Suppliers are streamed interest payments on loans. Suppliers share the interests paid by borrowers corresponding to the average borrow rate times the utilization rate. The higher the utilization of a reserve the higher the yield for suppliers. Note that each asset has its own market of supply and demand with its own APY (Annual Percentage Yield) which depends on its unique Interest Rate curve and Asset Utilization. You can learn more about the interest rate of each asset via the Markets Page. **Is there a minimum or maximum amount to supply?** There is no minimum supply amount, although it is important to take gas and relay costs into consideration when initiating a transaction as the gas cost could be higher than the supplied amount. There are maximum supply amounts stipulated for each asset for risk management, as such, please be mindful of limits if you are supplying a large amount. You can learn more about the supply caps of each asset via the Markets Page. **How do I withdraw?** To withdraw assets, please navigate to the “Portfolio” page, and in the “Supplied Assets” modal, click “Withdraw” under the preferred asset.

Portfolio page: withdraw

When withdrawing, be mindful of the collateralization ratio. Withdrawing reduces the collateral of your position and, if assets are borrowed, could put the position at risk of liquidation. ## Borrowing Before borrowing you need to supply any asset to be used as collateral. Please refer to the [Supply](#supplying) section to get started. As Syno is built on the Wormhole messaging protocol, collateral is natively cross chain. Collateral supplied on any supported chain can be used to borrow assets on the same, or any other supported chain without the need to bridge. After supplying collateral, simply head to the “Portfolio” or “Markets” sections and select an asset and a chain on which you would like to borrow. Set the amount you need based on your available assets that would be used as a collateral for the loan. **What happens when my Collateralization Ratio falls?** Depending on the value fluctuation of your supplies and borrows, the collateralization ratio will increase or decrease. If your collateralization ratio increases, it will improve your borrow position by making the liquidation threshold more unlikely to be reached. In the case that the value of your collateralised assets against the borrowed assets decreases instead, the collateralization ratio is also decreased, causing the risk of liquidation to increase. **Repaying** To repay your loan please head to “Portfolio” and click “Repay” under the Borrowed assets modal. You repay your loan in the same asset and chain that you borrowed, as such if ETH was borrowed on Optimism, to repay the position a user would need to repay the same asset. **Repaying USDC** Due to the native integration with Cross-Chain-Transfer-Protocol (CCTP) from Circle, Syno is able to facilitate Repayment of debt from any supported chain. As an example, if a user would like to Repay a USDC loan on Arbitrum but their USDC balance is on Ethereum, they would be able to facilitate the Bridging and Supply transaction all in one bundle. No need to Bridge and Repay! **How much would I pay in interest?** The interest rate you pay for borrowing assets depends on two factors: * Utilization Rate which is derived from the supply and demand ratio of the asset. * Unique interest rate curve that will be different per every asset. Please navigate to the Markets page to learn more. # Debt Pricing & Risk Syno uses a confidence-interval pricing approach to manage cross-chain liquidations during times of volatility. **Confidence Intervals & Asset Looping** Pyth oracles operate with confidence margins, which is a different mechanism implementation when compared to other providers. The confidence margin is subtracted from your deposit values and added do your debt values. When volatility is high there is the chance that liquidation can occur even if you are borrowing the same asset. \ \ Why is this done? Syno is natively cross-chain and therefore needs to account for cross-chain communication and messaging times to ensure that liquidations proceed properly and eliminate the risk of bad debt for the protocol.\ \ W**e always recommend that you keep your collateralization ratio sufficiently high to account for this**. *Example:* The formula our protocol has for collateral & debt price considers confidence intervals and price to account for volatility: \ `collateral price = price - 4.24 * confidence`\ `debt price = price + 4.24 * confidence`\ E.g. when ETH price is `$3240.69911225` and the confidence is `$2.62411225`, so the prices are: * collateral price of ETH \``3240.69911225 - 4.24 * 2.62411225 = 3229.57287631` * debt price of ETH `3240.69911225 + 4.24 * 2.62411225 = 3251.82534819` During times of high volatility, the confidence spikes, resulting in much higher difference between collateral and debt prices. **November 2024 Note:** Our current setup has a confidence interval of zero, which means collateral price is equal to debt price. The precautionary mechanism has been disabled for the time being and might be re-enabled in the future if our risk analysis warrants it. # Risk Management Safety first. ## Risk Parameters #### Asset Risk Definitions Each asset within the Syno Protocol has specific values related to their risk, which influences how they are supplied and borrowed within the protocol. These risk parameters were produced collectively with [Gauntlet](https://www.gauntlet.xyz/) and closely follow their recommendations. **Liquidation Bonus** The liquidation bonus is a fee rendered on the price of assets of the collateral when liquidators purchase it as part of the liquidation of a loan that has passed the liquidation threshold. **Minimum Health Factor** To avoid binary liquidation environments where positions are either liquidated in full or not liquidated at all, a Minimum Health Factor is introduced to guide liquidators. The Minimum Health factor avoids positions being liquidated beyond a safe and reasonable threshold, facilitating partial liquidations. As an example, if a position has reached a Collateralization Ratio of 100 and a liquidation is triggered, the liquidator is permitted to repay debt and liquidate collateral only up to the Minimum Health Factor or Minimum Collateralization Ratio of the account. This prevents over liquidation and optimizes for protocol safety and user experience. **Supply Factor** The Supply Factor represents the maximum borrowing power of a specific collateral. **Borrow Factor** The Borrow Factor represents the maximum ratio at which an asset can be borrowed. As an example, if the Supply Factor of Asset A is 70% and the Borrow Factor of Asset B is 80% then the maximum amount of Asset B that can be borrowed is 70 x 80 = 56% of Asset A. **Supply Cap** This is the maximum amount of an asset that can be supplied on the protocol. This factor is set per asset, per chain with an exception of USDC where the limit is set globally for the protocol. **Borrow Cap** This is the maximum amount of an asset that can be borrowed on the protocol. This factor is set per asset, per chain with an exception of USDC where the limit is set globally for the protocol. \ \ **Reserve Factor**\ \ The Reserve Factor is the portion of interest that is set aside as reserves rather than paid out to lenders. The global receive factor is 50% and is allocated in the following manner: * [vlSYNO](/documentation/tokenomics-and-rewards/syno-tokenomics) & [sSYNO](/documentation/tokenomics-and-rewards/syno-tokenomics/ssyno) - 35% * Operational - 15% ## Liquidations A liquidation is a process that occurs when a borrower's collateralization ratio or Health Factor drops, due to their collateral value not properly covering their loan/debt value. This might happen when the collateral decreases in value or the borrowed debt increases in value against each other. This collateral vs loan value ratio is shown by the number, visible on the “Portfolio” page in the top right. Liquidation is triggered at Health Factor below 1.1.
**The liquidation bonus** is a fee rendered on the price of assets of the collateral when liquidators purchase it as part of the liquidation of a loan that has passed the liquidation threshold. To see the exact liquidation bonuses on asset look here. ### Oracles Both Chainlink and Pyth price feeds can used as a source of truth for asset pricing. One over another is used depending on the market conditions. Price feeds for the relevant listed assets are itemized below: * USDC: [Pyth](https://pyth.network/price-feeds/crypto-usdc-usd) & [Chainlink](https://data.chain.link/feeds/arbitrum/mainnet/usdc-usd) * USDT: [Pyth](https://pyth.network/price-feeds/crypto-usdt-usd) & [Chainlink](https://data.chain.link/feeds/arbitrum/mainnet/usdt-usd) * wBTC: [Pyth](https://pyth.network/price-feeds/crypto-wbtc-usd) & [Chainlink](https://data.chain.link/feeds/arbitrum/mainnet/wbtc-btc) * ETH/wETH: [Pyth](https://pyth.network/price-feeds/crypto-eth-usd) & [Chainlink](https://data.chain.link/feeds/arbitrum/mainnet/eth-usd) * OP: [Pyth](https://pyth.network/price-feeds/crypto-op-usd) & [Chainlink](https://data.chain.link/feeds/optimism/mainnet/op-usd) * ARB: [Pyth](https://pyth.network/price-feeds/crypto-arb-usd) & [Chainlink](https://data.chain.link/feeds/arbitrum/mainnet/arb-usd) * apxETH: [Pyth](https://www.pyth.network/price-feeds/crypto-apxeth-pxeth-rr) * wstETH: [Pyth](https://www.pyth.network/price-feeds/crypto-wsteth-steth-rr) * ezETH: [Pyth](https://www.pyth.network/price-feeds/crypto-ezeth-usd) * tBTC: [Pyth](https://www.pyth.network/price-feeds/crypto-tbtc-usd) * weETH: [Pyth](https://www.pyth.network/price-feeds/crypto-weeth-usd) * sUSDE: [Pyth](https://www.pyth.network/price-feeds/crypto-susde-usd) #### Pull Oracle Infrastructure Considering that Pyth uses a pull-oracle approach, protocols are required to pull asset prices from Pythnet at a self-determined frequency. This allows for flexibility in latency as protocols require different latency considerations for optimal performance. To ensure security redundancy, Syno utilizes the industry leading automation provider [Gelato](https://www.gelato.network/) for price update automation.
# Asset Parameters Risk Management Parameters were calculated in partnership with [Gauntlet](https://gauntlet.xyz/), the leading quantitative risk management firm in the space. Asset Parameters are often updated - please check the markets page for up to date info. ## Risk Parameters MHF = Maximum Health Factor (Global). This is used for partial liquidations. When a position is liquidated, 1.25 is the maximum health factor (collateralization ratio) that a liquidator is permitted to reach LB = Liquidation Bonus, bonus that liquidator will get. SF = Supply Factor. BF = Borrow Factor. ### Ethereum
AssetMHFLBSFBFSupply CapBorrow Cap
USDC1.251.06480%100%1,232,000,0001,106,000,000
USDT1.251.06178%98%420,000,000350,000,000
wBTC1.251.06573%88%30,1004,600
wETH1.251.07276%88%600,000469,000
wstETH1.251.08275%88%600,00024,000
weETH1.251.07174%89%20001600
### Arbitrum
AssetMHF HFLBSFBFSupply CapBorrow Cap
ARB1.251.12160%60%14,000,00011,550,000
USDC1.251.06480%100%1,232,000,0001,106,000,000
USDT1.251.07678%100%35,000,00024,500,000
wBTC1.251.08473%90%2,940780
wETH1.251.06976%90%49,00028,000
wstETH1.251.08575%90%31,5001,680
### Optimism
AssetMHFLBSFBFSupply CapBorrow Cap
OP1.251.12140%59%7,000,000350,000
USDC1.251.06480%100%1,232,000,0001,106,000,000
USDT1.251.07678%98%17,500,00011,200,000
wBTC1.251.08973%88%840175
wETH1.251.07276%88%25,13013,820
wstETH1.251.08775%88%24,1501,050
## Interest Rate Parameters ### Ethereum
AssetKinksRates
USDC(0%, 80%, 100%)(0%, 5%, 105%)
USDT(0%, 80%, 100%)(0%, 5%, 105%)
WBTC(0%, 45%, 100%)(0%, 4%, 304%)
WETH(0%, 80%, 100%)(0%, 3.3%, 103.3%)
wstETH(0%, 45%, 100%)(0%, 4.75%, 104.75%)
weETH(0%, 45%, 100%)(0%, 4.75%, 304.75%)
### Arbitrum
AssetKinksRates
ARB(0%, 45%, 100%)(0%, 7%, 307%)
USDC(0%, 80%, 100%)(0%, 5%, 105%)
USDT(0%, 80%, 100%)(0%, 5%, 105%)
WBTC(0%, 45%, 100%)(0%, 4%, 304%)
WETH(0%, 80%, 100%)(0%, 3.3%, 103.3%)
wstETH(0%, 45%, 100%)(0%, 4.75%, 104.75%)
### Optimism
AssetKinksRates
OP(0%, 45%, 100%)(0%, 7%, 307%)
USDC(0%, 80%, 100%)(0%, 5%, 105%)
USDT(0%, 80%, 100%)(0%, 5%, 105%)
WBTC(0%, 45%, 100%)(0%, 4%, 304%)
WETH(0%, 80%, 100%)(0%, 3.3%, 103.3%)
wstETH(0%, 45%, 100%)(0%, 4.75%, 104.75%)
# Governance Community-first. ## Governance Structure The purpose of this governance framework is to outline the required governance processes for Syno Finance DAO. This framework will ensure that all members of the DAO have a clear understanding of how the governance system works and how proposals can be put forward and voted on. #### Phase 1: Syno Commonwealth Forum Proposals will start on Commonwealth Forum. These are proposals that require feedback and must have a 24 hour minimum & 48 hour recommended discussion phase before moving forward. During this phase, all members of the Synonym Finance DAO are encouraged to provide feedback, suggestions, and any concerns related to the proposal. #### Phase 2: Syno Snapshot Proposal Once the required duration for the proposal is over, we move to the Snapshot. These are finalized proposals ready for implementation and will be reposted on Commonwealth with any revisions (if necessary) based on feedback from the previous phase. It will also be posted on Snapshot for voting, which requires a 48 hour minimum and 72 hour recommended voting phase. #### Phase 3: Implementation If the majority of Snapshot votes are in favor of the proposal, the proposal will be implemented. If the majority of the Snapshot votes are against the proposal, the proposal will not be considered closed and will not be implemented. #### Proposal Removal: Proposals that are unreasonable or attempt to harass or troll others will be removed. This is to ensure that the Syno Finance DAO remains a positive and productive space for all members. #### Types of Proposal: * Proposal to update risk parameters of an asset; * Proposal to list/remove the asset; * Proposal to allocate $SYNO Emissions to the asset; * Proposal to update SYNO/tSYNO/vlSYNO tokenomics; * Others that will contribute towards the future growth of the protocol. ## Voting * SYNO does not have any governance rights. * sSYNO has 1 vote per every sSYNO. * vlSYNO has 10 votes per every vlSYNO * tSYNO holders are able to participate in key governance processes as well, due to the 15 month staking timeline. * For the avoidance of doubt, the community does not have legal control over any matters relating to the Company (or any of its affiliates) or any of its assets, or any of its affiliated companies (including without limitation the selection of governing board of the relevant company, over corporate matters, development direction, specific projects, or deployment of that company's assets, which shall be the final responsibility of the governing board of the relevant company).
# SYNO Tokenomics Tokens breakdown. The native cryptographically-secure fungible protocol token of Syno (ticker symbol SYNO, comprising a digital token-based representation of a suite of smart contracts or executable programming scripts deployed on the relevant blockchain-based distributed peer-to-peer network) is a transferable representation of attributed utility functions specified in the protocol/code of Syno, and which is designed to be used solely as an interoperable utility token.

SYNO Tokenomics

## Tokenomics & Vesting | | **%** | **SYNO Tokens** | | ---------------- | ----------- | --------------- | | Team | 20.00% | 160,000,000 | | Existing (tSYNO) | 38.00% | 304,000,000 | | Emissions | 20.00% | 160,000,000 | | Early Purchasers | 10.00% | 80,000,000 | | Reserve | 7.00% | 56,000,000 | | Ecosystem | 5.00% | 40,000,000 | | **Total** | **100.00**% | **800,000,000** | ### Token Allocation Breakdown Existing Supply - tSYNO: 38% The existing supply of NEWO tokens can be converted to tSYNO via 1:1 basis. Tokens will be staked for a period of 15 months, from TGE, subject to a penalty decreasing linearly if choosing to unstake earlier. Starting penalty at TGE - 90%, with forfeited penalty tokens returning to the treasury. Note that it is extremely unlikely that all of these tokens convert to SYNO. We never expect to hit the maximum 800M circulating supply. Reserve: 7% This allocation will be used to incentivize contributors, drive growth and account for further growth costs. We intend to use this allocation when unexpected opportunities arise that pose immediate value to the Syno community. Ecosystem: 5% This allocation is used to handle ecosystem support and partnerships not accounted for in regular emissions. Emissions: 20% A percentage of tokens will be distributed since launch in a manner which would aggressively promote ecosystem adoption. The rest will be distributed in perpetuity. Team: 20% Syno is being built by a highly efficient team with experience from multiple DeFi verticals. Backgrounds range from economics through to computer science and venture capital. Early Purchasers: 10% We maintain a relatively small amount of tokens allocated strictly for early purchasers. ### Circulating Supply Over Time

Note: subject to change

As set out in this document, SYNO is a functional multi-utility token which provides the economic incentives which will be distributed to encourage users to exert efforts towards contribution and participation in the ecosystem on Syno, thereby creating a mutually beneficial system where every participant is fairly compensated for its efforts. SYNO is an integral and indispensable part of Syno, because without SYNO, there would be no incentive for users to expend resources to participate in activities or provide services for the benefit of the entire ecosystem on Syno. Given that additional SYNO will be awarded to a user based only on its actual usage, activity and efforts made on Syno and/or proportionate to the frequency and volume of transactions, users of Syno and/or holders of SYNO which did not actively participate will not receive any SYNO incentives. SYNO does not in any way represent any shareholding, ownership, participation, right, title, or interest in the Company, the Distributor, their respective affiliates, or any other company, enterprise or undertaking, nor will SYNO entitle token holders to any promise of fees, dividends, revenue, profits or investment returns, and are not intended to constitute securities in the British Virgin Islands, Singapore or any relevant jurisdiction. SYNO may only be utilised on Syno, and ownership of the same carries no rights, express or implied, other than the right to use SYNO as a means to enable usage of and interaction within Syno. The secondary market pricing of SYNO is not dependent on the effort of the Syno team, and there is no token functionality or scheme designed to control or manipulate such secondary pricing. For the avoidance of doubt, neither the Company nor the Distributor deals in, or is in the business of buying or selling any virtual asset or digital payment token (including SYNO). Any sale or distribution of tokens would be performed during a restricted initial period solely for the purpose of obtaining project development funds, raising market/brand awareness, as well as community building and social engagement; this is not conducted with any element of repetitiveness or regularity which would constitute a business. ### Conversion & tSYNO Syno Finance was launched via a merger with New Order DAO. To address the growth of the token supply, while ensuring zero dilution for NEWO holders, we are introducing staked SYNO - tSYNO tokens. NEWO tokens will convert to tSYNO on a 1:1 basis, with a 15-month staking phase and penalties for early unstaking. This penalty starts at 90% and declines to 0% linearly over the 15 month period. Forfeited penalty tokens will go back to the treasury of Syno. veNEWO holders at the time of a specific snapshot will receive a claim token (rCT), granting 50% of rewards from New Order's incubated project tokens that were transferred to Syno Treasury as by the [proposal](https://commonwealth.im/new-order-dao/discussion/12710-improved-proposal-to-merge-new-order-dao-into-synonym-finance). The amount of rCT received depends on the user's veNEWO balance converted to SYNO. Unstaking tSYNO early results in reduced claims on treasury rewards. Additional conversion information is available [here](https://medium.com/@New_Order/newo-syno-migration-faq-714f77414174).
# sSYNO Staked SYNO SYNO staking allows users to deposit their SYNO tokens into a staking contract to gain governance power and earn additional SYNO rewards. It is a single-sided staked token unlike vlSYNO. The staking process includes a 0 warm-up period before tokens become fully active and a cooldown period of 3 days before tokens can be unstaked. This ensures stability and guards against governance attacks within the ecosystem. sSYNO is eligible for a percentage of emissions and fees: * 20% of Emissions allocated for vlSYNO & sSYNO * 20% of Money Market Fees allocated for vlSYNO & sSYNO * 20% of Optimistic Finality Fees allocated for vlSYNO & sSYNO All fees to be streamed & distributed via buyback and distribute in $SYNO to incentivize buying pressure on SYNO. # vlSYNO Provide liquidity and get vlSYNO To achieve liquidity in the SYNO-WETH pool on Balancer, Syno has implemented a system that would incentivise the users for their contributions in providing liquidity resource (to encourage participation in the SYNO-WETH pool). By actively providing liquidity into Balancer 80SYNO-20WETH Liquidity Pool, the user is able to get boosted emissions & allocation of fees in SYNO and governance. vSYNO is eligible for a percentage of emissions and fees: * 80% of Emissions allocated for vlSYNO & sSYNO * 80% of Money Market Fees allocated for vlSYNO & sSYNO * 80% of Optimistic Finality Fees allocated for vlSYNO & sSYNO All fees to be streamed & distributed via buyback and distribute in $SYNO to incentivize buying pressure on SYNO. {% embed url="" %} # Obtaining vlSYNO To obtain vlSYNO, users would have to provide liquidity on Balancer and choose one of the following multiplier options depending on the time of the lock: * 1 month - 2x * 3 month - 5x * 6 months - 11x * 12 months - 25x To obtain vlSYNO, please start with providing liquidity on Balancer Balancer (Arbitrum) 80/20 composition (80% SYNO & 20% wETH): {% embed url="" %} Then navigate to the SYNO page on the Dapp, choose your multiplier and lock your Balancer Pool Tokens. # Fees distribution Syno fees initially will originate from Borrowers Interest and Liquidation Fees. The split of the fees will be the following: | Base APY for Suppliers (for actively contributing to the money market) | 50% | | ---------------------------------------------------------------------- | -------- | | vlSYNO & sSYNO | 35% | | Operational | 15% | | **Total:** | **100%** | Syno also generates fees via Optimistic Finality. The split of the fees will be the following: | Operational | 65% | | -------------- | -------- | | vlSYNO & sSYNO | 35% | | **Total:** | **100%** | # Contract Deployments Current addresses for all smart contract deployments ### Tokens
NameAddress
SYNO0x577Fd586c9E6BA7f2E85E025D5824DBE19896656
tSYNO0xC2ed21709d6D8D8BA24e9B1E8165604f6130a246
rCT0xE29578C5AeF73B045D0BaaBEe52b223D5cf02443
vlSYNO0x6E0E8C78D7B894bEFF66ade8B27b089a53cF4D04
sSYNO0x0F0E7D30F34470B22524d2b5aAB0D9475a25dfDF
### Money Market Addresses
NameAddress
Hub0x1e3f1f1cA8C62aABCB3B78D87223E988Dfa3780E
Spoke_Optimisim0x577Fd586c9E6BA7f2E85E025D5824DBE19896656
Spoke_Ethereum0xDB4B829D5596405023e7EfBCfdB4ce156096887d
DelegateAddress0x84eee5Ac39Bd10E3bD2324940206628E5174AC17
SynonymPriceOracle0x32F5Ac1Fc67195A2B9a8f61e413Bef9035b68cde
HubPriceUtilities0x4C1432F951Fc124F9C153b66E1bdB0E027231b46
HubHelperViews0x699C610438afb53C12cA7DBd7a306A32bD5832b3
Liquidation Calculator0x37d706Be37b9681Ad7A64fc83F4478F05198D5e6
AssetRegistry0x6510D7705dF7Ad4923B9699A1af4c72894087631
RewardsDistributor_wETH0x54C767A5198FDcA089112026285F333C0fA14599
RewardsDistributor_SYNO0xb6111DAE5E9a8b669449DC100d262eca438dcf92
TokenConverter0x67dE8310F082Cc3E7FFfdD4E13D39312860c2aAA
ChainlinkPriceAdapt_wstETH/USD0x793b1d6E52a989a337362FCb94BA53D6F1D7f4f5