Synapse Price (SYN)

What is Synapse? Synapse is a cross-chain layer ∞ protocol powering frictionless interoperability between blockchains. By providing decentralized, permissionless transactions between any L1, sidechain, or L2 ecosystem, Synapse powers integral blockchain activities such as asset transfers, swaps, and generalized messaging with cross-chain functionality - and in so doing enables new primitives based off of its cross-chain architecture.

How does the Synapse Network work? The Synapse network is secured by cross-chain multi-party computation (MPC) validators operating with threshold signature schemes (TSS). The network is leaderless, and maintains security by each validator running the same process upon receiving on-chain events on the various chains that the MPC validator group tracks. Once two-thirds of all validators have collectively signed the same transaction using their own individual key, the network achieves consensus and issues a transaction to the destination chain.

The Synapse AMM The Synapse Network is responsible for responding to on-chain events to submit transactions to any particular destination chain, directing liquidity within the network to its desired location. The Synapse AMM is how the assets that compose that liquidity are transformed into tokens native to the chosen destination chain. To do this, the AMM implements a stableswap algorithm to price and re-balance assets within its cross-chain liquidity pools to enable frictionless movement of assets between ecosystems with low slippage. In the future, other implementations may be explored to enhance swapping and bridging efficiency.

SYN (Synapse Token) SYN is the asset that powers the Synapse Ecosystem. It is used for community governance votes via the SynapseDAO, as an incentive for the liquidity providers that enable the protocol's cross-chain functionality, and as a subsidy to pay for the gas expended by network validators to secure transactions across the network. Once the Synapse Chain reaches the Archean Phase, SYN will provide economic security for the chain by requiring validators to stake it in order to operate on the network. As the native token of the Synapse Chain, SYN may also be used to pay for transactions within the network as well as for bridging to other chains.