Synonym: Now Live On Mainnet

Synonym Finance
6 min readFeb 6, 2024

After quite a bullish testnet launch where more than 10k users generated over 100k transactions, we’ve officially brought Synonym to mainnet!

Today, we’ll do a quick walk-through of the features, chains, and assets that are now available on Synonym, as well as explore the benefits of Synonym’s SYNO token.

Lending & Borrowing

To start, Synonym offers lending and borrowing markets for 7 assets across 3 chains.

  • WETH, USDT, WBTC, wstETH, USDC are available on Arbitrum, Ethereum, and Optimism
  • ARB is available on Arbitrum
  • OP is available on Optimism

Here’s a look at all our markets in one place:

Want to see the stats for each asset on each chain? Simply click on “Chains” in the rightmost column, labeled “Action.” For example, here’s what our Ethereum markets currently look like:

However, in order to truly understand the power of Synonym’s infrastructure, we encourage everyone to try it out. Each market is built on top of top-tier cross chain technology via Wormhole and Circle CCTP, which abstracts away the extra steps of bridging and wrapping assets. What’s left is a seamless and fast experience of lending tokens on one chain and borrowing on another, while the chains themselves are an afterthought.

And if that wasn’t enough, we’re already planning out Synonym’s scaling process. Because of its flexible infrastructure, Synonym can grow to offer many more assets and expand its chain offerings to Wormhole’s entire list (29 chains and growing).

SYNO

Along with our mainnet deployment is the official launch of our SYNO token. Due to our merger with New Order DAO (you can read more on that here), NEWO tokens are convertible to tSYNO on a 1:1 basis, and the total supply of SYNO will be 800 million in accordance with NEWO’s supply. Here’s a look at how the supply is distributed:

The two components of this distribution we’ll focus on in this article are:

  • 38% — Existing tSYNO
  • 20% — Emissions

Additionally, veNEWO holders are eligible to receive an airdrop of rCT, which is a claim token that receives income generated from incubated project tokens in Synonym’s Treasury (BTRFLY, Y2K, etc.). rCT will automatically be deposited into eligible wallets when they convert their NEWO into tSYNO.

Types of SYNO

tSYNO

As shown above, a maximum of 38% of the SYNO supply will be distributed in the form of tSYNO, which is what you’ll receive in exchange for NEWO tokens.

All tSYNO tokens will undergo a 15-month vesting period starting January 30, 2024. During this vesting period, there will be a fee to redeem tSYNO tokens, which will gradually decrease during the following 15 months. The fee will start at 90%, and all tokens that are paid as fees will be sent to the Synonym Treasury. Holders of tSYNO will also receive real yield via 10% of all platform fees.

Current NEWO holders can take the following steps to convert their NEWO into SYNO via our migration page:

If your NEWO isn’t on Arbitrum, you’ll need to bridge your tokens there first

This will send your NEWO from Ethereum Mainnet and/or Avalanche via Wormhole’s Portal bridge. If you have NEWO on both chains, it’s best to send each position to Arbitrum directly rather than consolidate all your tokens on Mainnet or Avalanche.

After verifying the amount on NEWO as well as setting your destination chain to Arbitrum, click “Next” to approve the transaction.

After bridging and redeeming your NEWO, you’ll need to sign the disclaimer to agree with Synonym’s terms of use, privacy policy, and token burning procedure

After signing the disclaimer, your NEWO will be converted into tSYNO and begin a 15-month vesting period (we’ll get into more information on the vesting period below)

For more information on the migration process, be sure to check out our FAQ page or contact us on Discord.

vlSYNO

The 20% SYNO allocation to “Emissions” will go to money market participants, and vlSYNO holders can further boost their emissions by locking up their tokens.

vlSYNO is a depository receipt for locking SYNO-ETH BPTs on Synonym, and its holders receive yield from two sources:

1. Real yield, distributed pro rata from platform fees

  • The more SYNO you lock, the higher share of platform fees you’ll receive
  • 40% of all fees will go to vlSYNO holders

2. Boosted yield via SYNO emissions

  • The longer you lock your tokens, the bigger the boost you receive
  • Options for locking duration are 1, 3, 6, and 12 months with the following boosts:
  • 1 months = 2x
  • 3 months = 5x
  • 6 months = 11x
  • 12 months = 25x

Now that we’ve covered the benefits, ready to lock your SYNO? We thought so! Receiving vlSYNO involves a simple two-step process:

  • Deposit SYNO into our SYNO-WETH pool on Balancer and receive SYNO-WETH BPTs (Balancer Pool Tokens)
  • Deposit your BPTs into Synonym by clicking the “Lock” tab at the top of the screen, and then click “Create Lock” in the yellow box. Then, select your lock duration and confirm your BPT deposit

By depositing SYNO-WETH BPTs, the liquidity for SYNO remains strong in the locking process. If plain SYNO tokens were staked instead, it would fragment liquidity for the token as a large % of the supply would be stuck in the locking contracts.

How To Earn On Synonym

Initially, all platform fees will come from 2 sources:

  • Interest paid by borrowers
  • Liquidations

The distribution of all platform fees will be the following:

So, an equal amount of interest from borrowers are paid to lenders and SYNO lockers. Lenders receive a “base APY” designated in the tokens they lend, which is calculated as 40% of the borrowers rate * utilization rate. Additionally, 40% of platform fees will be distributed to vlSYNO holders.

SYNO Emissions

In addition to platform fees, SYNO emissions will also be paid out to money market participants as well as vlSYNO holders. If lenders and borrowers lock their BPTs for vlSYNO, they’ll receive boosted SYNO emissions.

Again, a total of 160 million SYNO (20% of the total supply) will be distributed in the form of SYNO emissions. Early lockers are set to benefit the most, with over 50% of emissions occurring during the first 7 months. The rest will be distributed over a minimum of 15 months at a decreasing rate. Here’s a look at the total circulating SYNO supply over time, including the emissions unlock trend:

Stay Tuned For More

After exceeding 100,000 transactions in less than 2 months on our testnet app, we’re excited to see what the future holds for mainnet. If you haven’t checked out our mainnet app yet, you can do so here.

To keep up with all developments going forward, make sure to follow us on X as well as join our community on Discord.

--

--