Recently a project has caught my eye called Synthswap, its looks like a very promising DEX. So i am going to do an article on it, hope you all enjoy and lets dive in.
💹 Total Value Locked in Base is currently around $409 million. What’s more notable is the increasing flow of Stablecoins within the chain. Interest in this blockchain is incredibly high, and it’s attracting quality projects that want to build and thrive on Base.
Top 10 DEX On Base
Synthswap is one of the top DEXs on Base, to clarify it passed a thorough audit by PeckShield and was built by Zyberswap.
In fact it offers low trading fees, highly rewarding Staking and Yield Farming, Launchpad and Futures.
💡 While all this and more is possible thanks to Concentrated Liquidity and Active Liquidity Management in the Base ecosystem.
Lets Dive In
Maximize capital efficiency and mitigate impermanent loss by concentrating liquidity within a specific price range. Stake a specific token pair within a defined price range.
💼 Concentrated liquidity pools offer higher returns but pose challenges for providers. Liquidity must be provided within specific price ranges. Fees are not earned if the price moves outside the range, unless adjusted.
So, there’s a solution!
👾 Gamma’s active liquidity management tools automatically rebalance and compound swap fees to maximize capital efficiency for users.
💰 Surprisingly TVL has experienced a slight drop and is now at $2.3 million, creating favorable opportunities for farming🌽🌽🌽
👨🌾 Yield Farming is gaining momentum once again.
There’s is undeniably growing buzz surrounding it, and that’s a privilege for us. As more people show interest in Farming, it incentivizes builders to offer high-quality platforms with a high APY.
🔑 This is why one of the key advantages of Synthswap is its high APR yield farming.
💸 Synthswap farms encourage users to provide liquidity for token pairs. By staking LP tokens in farms, users can earn trading fees and Synthswap tokens.
🏦 If you are a supporter of stable pools, DAI-USDBC is currently offering an impressive ~40% APR.
With rewards in SYNTH and xSYNTH.
Let’s discuss tokenomics
Synthswap adopts a fair launch model for SYNTH token distribution, aligning with mission of decentralization and fairness.
Token distribution follows a fixed supply, linear emission model with burning or deflationary mechanisms to reduce supply.
xSYNTH is a protocol profit-sharing and governance token. It is non-transferable and held in escrow.
🥩 Also, xSYNTH represents staked SYNTH tokens and can be acquired through instant conversion from SYNTH tokens or as a Farming Reward on Yield farms.
🛠 Utility of xSYNTH
– Earn rewards through profit-sharing with Earn Profits
– Increase launchpad allocation by staking xSYNTH
– Participate in governance voting with xSYNTH
🔥 Tokenomics system counters inflation, promotes a healthier token economy in xSYNTH. It reduces token supply over time, creating scarcity and potentially increasing value.
• Methods: burning tokens, transaction fees, or locking up tokens in a smart contract.
🔒 In today’s world, conducting a quality audit holds significant importance. As mentioned earlier, Peckshield performed a comprehensive audit of Synthswap.
📃 You can access the audit report here: https://github.com/peckshield/publications/blob/master/audit_reports/PeckShield-Audit-Report-SynthSwap-v1.0.pdf
Overall this Synthswap looks really good and i will be keeping my eye on this on.