Synapse Protocol (SYN): Simplifying Cross-Chain Asset Transfers

The vast number of blockchains has resulted in a lot of exciting opportunities for users, but it also comes with challenges. Many blockchains struggle to communicate with each other, so it can be hard to transfer data between different systems. Synapse helps to address this issue with its convenient cross-chain network. People can use the Synapse protocol for everything from sending messages to moving digital assets. Keep reading to discover how Synapse has revolutionized blockchain communication. 

Key Takeaways:

• Synapse is a cross-chain communications network that allows people to send data, assets and messages between blockchains.

• Looking to trade Synapse tokens? Bybit now offers SYNUSDT Perpetual contracts.

What Is the Synapse Protocol?

Synapse is a cross-chain communications network that allows people to send data, assets and messages between blockchains. The protocol is available on a wide variety of chains, including both EVM and non-EVM networks.

History of Synapse

Synapse was made by a pseudonymous group of developers who go by the X/Twitter handles of AureliusBTC, Socrates0x, Caesar0x, Trajan0x and ChiTimesChi. The project was originally a stableswap automated market maker (AMM) called Nerve Finance. However, in 2021, the development team chose to switch focus and rebrand. 

Since the project’s cross-chain network was so strong, its team decided to prioritize developing that instead of continuing with their AMM development. Despite updating their business model, they were able to retain their original group of investors. The project has funding from Primitive Ventures, CMS Holdings and others.

What Does Synapse Aim to Achieve?

Synapse hopes to solve the problem of cross-chain communication. Blockchains are inherently isolated networks. Each blockchain runs with its own system of code, security measures and validation methods. This can make it challenging for blockchains to interact with each other. Users who try to operate different blockchain networks simultaneously can run into problems, such as their assets being unavailable on a blockchain they use to play a particular game. 

This is where Synapse is useful. By stepping in to handle cross-chain interactions, its communication protocol allows people to use whatever chain they wish. This way, users can work with multiple chains without having to worry about being able to move assets and information between systems. 

How Does Synapse Work?

The Synapse Chain is the heart of the entire cross-chain system. This source chain functions as a data availability layer that can send information between any Synapse tools and any outside chains the protocol connects to. It's an Ethereum-based optimistic rollup, so it's fast, efficient and secure. 

The Synapse system is designed to be fully trustless and permissionless. Anyone is allowed to run a node to help secure the network, and a system of checks and balances verifies messages. The proof of stake (PoS) consensus method requires validators to temporarily lock tokens in smart contracts, so they have to follow network rules or forfeit their funds.

Features of Synapse

Synapse's cross-chain transfers have many applications within the blockchain world. Following are the primary ways that users can benefit from Synapse’s services.

Bridge

Synapse's cross-chain bridges allow users to send assets between a variety of chains. Its simple interface lets users transfer assets simply by clicking their desired network, entering the amount of tokens they want to send and confirming the transaction. The bridges work with over 15 chains and allow the bridging of both wrapped and native assets. Synapse Bridge is one of the most commonly used crypto bridges, having helped transfer over $20 billion worth of assets over the past few years.

Swap

Synapse Swap allows for asset exchanges between certain chains. Instead of just moving an asset from one chain to another, Swap exchanges assets. Users' funds are fully converted to a native token on a different chain, so swapped funds are even more versatile than bridged ones. 

Pools

Synapse's asset pools help with liquidity while also providing users with chances to earn income. People can temporarily lock their tokens in Synapse's pools in order to provide liquid tokens that make decentralized finance (DeFi) transactions faster. They can earn interest while the tokens are being used, and then receive their initial funds back at the end of the term. Synapse's time-weighted reward system allows people to earn up to 26% APY.

Stake

The Stake feature allows users to help secure the Synapse protocol and other DeFi systems. By temporarily locking tokens, users provide the funds needed for PoS validation. Staking also functions as a means of earning passive income. Users can earn yields of up to 26% via the staking service. 

Explorer

Explorer lets people view all the cross-chain transactions that take place on Synapse. This helpful tool is useful for both investors, who can see which chains have the most activity, and developers, who can watch how their projects perform.

Interchain Network

The Interchain Network is a complex web of cross-chain communication and settlement. Developers can access it to make products function more seamlessly. For example, AMM can use it to pool liquidity across chains, while a private key management system can use it to secure multiple wallets.

Solana Bridge

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

Synapse Road Map

Since 2021, Synapse has made far-ranging changes to its system, having designed a variety of helpful tools and expanded its technology to work with many different blockchains. As of summer 2024, Synapse's main focus is on further increasing its number of connected chains so that users can transfer data between a variety of different chains. It’s also looking for ways to increase the number of people and web3 projects using its services. 

Eventually, Synapse hopes to launch an incentives program that will encourage more people to rely on its services. 

SYN Tokenomics

SYN is the native token for the Synapse Chain. Its primary purpose is to assist with governance. Anyone who holds over 100,000 SYN tokens can vote on matters in the Synapse decentralized autonomous organization (DAO). SYN currently has a maximum supply of 250 million tokens, but some members of the DAO have suggested that the token supply should be increased in the future. Initially, SYN tokens have been distributed as follows:

• SYN genesis airdrop: 62%

• Future distribution: 27%

• Liquidity providers: 8%

• Synapse owned liquidity: 2%

• Synapse DAO loan to market makers: 1%

SYN Price Prediction

Since SYN hit the market, the token's value has shifted a lot. At first, SYN’s price was around $3. However, in the summer of 2022, it dropped below $2 and hasn’t recovered since. Despite the decline in price, SYN has still experienced some occasional price spikes. When the company announces promising news about its project, prices begin to rise to around $1. 

It seems likely that another similar price increase is right around the corner for SYN. Crypto influencers report a bullish outlook for SYN, due to all the exciting news about Synapse adding more blockchains to its system. Furthermore, analysis of SYN pricing data shows that it could potentially reach $1.40 by the end of September 2024, and CoinCodex suggests that by the end of this year, SYN might be worth over $2.

Where to Buy SYN

Looking to trade Synapse tokens? Bybit now offers SYNUSDT Perpetual contracts for trading. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the SYNUSDT Perpetual contracts trading page. 

Is SYN a Good Investment?

If you like investing in fairly stable web3 projects, SYN is a good choice. This crypto doesn't have wild price swings, as a new startup would, but it's been around for a while and has proved its worth. Thanks to the utility of the Synapse protocol, SYN rarely undergoes huge price drops, and it regularly experiences price increases. Therefore, investors who like holding onto crypto for a while and selling at the perfect moment may enjoy Synapse.

However, if you’re extremely risk-averse, SYN might not be for you. SYN doesn't have the massive trading volume or reliable value of blue-chip tokens such as BTC, so some uncertainty is expected. If you want to invest in SYN, you'll need to use some caution and avoid overextending yourself financially.

Closing Thoughts

The Synapse protocol provides a much-needed service for blockchain networks. Its ability to provide effective communication allows users to perform a variety of bridging, swapping and trading tasks. As long as Synapse continues to expand its system, its crypto seems likely to perform reliably. If you enjoy investing in web3 services, Synapse is worth considering.

#LearnWithBybit