Week 1 Recap

Synonym Finance
4 min readFeb 15, 2024

Synonym is off to a hot start since its launch last Tuesday — in less than 48 hours, platform TVL reached $10m! Between the hype surrounding our partners (especially Wormhole and Pyth), our state-of-the art cross-chain money market tech, and some of the nicest incentives in DeFi, what’s not to love?

Today, we’ll go over some of the metrics we’ve achieved in our first week, as well as remind everyone how they can take advantage of our high boosted APYs.

Synonym Stats

To begin, let’s take a look at Synonym by the numbers:

  • TVL — $9.75m
  • Total available (excess collateral) — $5.55m
  • Total borrows — $4.2m
  • SYNO-WETH BPT pool — $1.5m
  • Locked BPT positions on Synonym — 232
  • Total vlSYNO supply — 308.78k

There are also some amazing APYs to be earned, especially in the borrowing markets. Right now, all borrowing markets except USDC are offering triple digit APY! For example:

  • >300% APY for WBTC and wstETH borrowers
  • >230% APY for OP borrowers
  • >210% APY for WETH borrowers

The onboarding of the NEWO tokenholder community has also been a huge success so far. Out of the total 304m outstanding NEWO tokens, over 40% has been converted to tSYNO (~126m out of 304m) in just over a week since launch. Again, you can refer to our launch blog post for more information on migrating your NEWO to tSYNO. As a reminder, if you happen to be a veNEWO holder, you get a bonus claim token (rCT) which earns a portion of yield from primary treasury assets like BTRFLY and Y2K.

Boost Your APY With vlSYNO

As with all money markets, there are base APYs associated with lending and borrowing each listed asset. But the real gains can be made with our boosted APYs, which can be earned on top of the base APY. Boosted APY is paid out via SYNO token emissions, and it’s available to all vlSYNO holders.

In order to receive vlSYNO, you have to lock up SYNO/WETH BPTs, which contributes to SYNO liquidity while counteracting its supply inflation. Locking can earn some pretty incredible rewards — for example, if you lock your BPTs for a year, you get the max emission boost, which currently means triple-digit APY! For more information on how to lock BPTs to get vlSYNO, check out last week’s blog post here.

So far, we’ve had some pretty solid participation with vlSYNO, with 232 users locking up their BPT. As you can see here, the average rewards multiplier is 18.21x, which is an average of about a 9-month locking period per user. That means not only are people locking up their tokens, but they’re doing so for a long time — we love the loyalty!

Also, SYNO emissions are front-loaded, which means that the amount of SYNO paid out to lockers goes down each week. In other words, locking early pays.

Finally, today marks the end of our first weekly epoch, which means our first batch of SYNO rewards will be distributed! All eligible users will be able to claim their rewards today after 14:00 UTC.

High APY + Restaking

If you want to take advantage of Synonym’s high boosted emissions, and you want to start or increase a restaked ETH position, but you don’t want to part with your stablecoin position, we’ve got a solution for you!

Right now, you can lend out your USDT or USDC on Mainnet, Arbitrum, or Optimism and earn over 30% in boosted APY. To restake ETH, you’ll need to borrow ETH on Mainnet, which currently carries a boosted APY of more than 200%.

Once you’ve created your APY-maxxed lending and borrowing position, you can take your ETH over to Renzo Protocol and have it earn even more APY. With just one click, your ETH will be staked and restaked. And to make things even better, you’ll earn Renzo and EigenLayer points for doing so.

Stay Tuned For More

Our mainnet launch is off to a great start, and if you haven’t checked out our mainnet app yet, you can do so here. We’ve also got a lot more going on in the pipeline — to keep up with all developments going forward, make sure to follow us on X as well as join our community on Discord.