Introducing Synapse xAssets
Upgrade your token into the multi-chain world
Why go multi-chain?
We believe that the multi-chain expansion has radically changed crypto’s user experience for the better. For one, creating new blockspace has been instrumental in directly onboarding new users into crypto. Users that were previously priced out of using Ethereum’s base layer could now access smart contract platforms at a fraction of the cost. Similarly, the birth of all this new blockspace meant that blockchains had to compete much more aggressively for applications to build on them and bring their users over. All of this has resulted in a variety of independent blockchain ecosystems, each with their own unique applications and unique set of users.
In the multi-chain world, assets that choose to be siloed on a single blockchain are exposed to far less users than assets that can be used across multiple blockchains. Multi-chain functionality is now key in helping projects grow their distribution.
Take UST for example, arguably the best example of how going multi-chain can increase a project’s distribution. Compared to every other decentralized stablecoin, UST is available on far more blockchains, opening it up to more users and many different ecosystems. It’s not just Terra users that have utility for UST, but also every user on Avalanche, Fantom, Arbitrum, and many more blockchains. Activities like swapping, lending, and contributing UST to stableswap pools is open to millions of more users than if UST where to exist on Terra alone. We are particularly excited to support the launch of the new 4pool. Synapse will be the primary way for users to send their UST between Arbitrum and many other EVM blockchains.
To date, we’ve worked with a wide variety of teams in upgrading their assets into Synapse xAssets including UST, Jewel, Frax, OHM, Vesta, StakeDAO, and many more.
We have also seen success in taking SYN multi-chain. Users that are a bit more fee-sensitive can trade and LP SYN on Fantom and Avalanche. We are also exploring additional use cases for SYN in a variety of DeFi ecosystems.
How do xAssets work?
Canonical Token Bridging
The most simple multi-chain integration setup is for assets that are currently deployed on a single source chain. We can turn those assets into xAssets through a canonical minting mechanism.
The way this works is a new ERC20 token contract is created on all of the desired destination chains which will serve as the pegged token. When a user bridges their token from the source chain to any destination chain, the original token is locked in Synapse’s bridge smart contract. The Synapse protocol than transmits a cross-chain message instructing the target chain to mint the destination chain token. This newly minted token is distributed to the user’s wallet address on the target chain, along with a gas airdrop.
When a user wants to redeem the token on the destination chain for their original token, the user would initiate a transaction in the opposite direction, and the bridge asset is burned on the destination chain. The network then passes a cross-chain message back to the original chain, and confirms that the destination chain transaction is valid, and the original asset is unlocked for the user.
The circulating supply of tokens remains constant because the total number of tokens can always be calculated by taking the number of tokens on the source chain along with all of the tokens in Synapse’s bridging contract on the source chain.
For additional technical details, the Synapse bridge contracts can be viewed here.
Some tokens have already been issued on multiple blockchains but wish to expand to all of the chains that Synapse supports, some have launched without any bridging solution, and others are looking to expand how many bridges support their tokens.
Our team can work with virtually any asset to help it become a Synapse xAsset.
Why partner with Synapse?
Taking your token cross-chain has numerous benefits, but also comes with a unique set of challenges and decision making. Synapse not only offers around the clock support from our product team, but continues to assist projects even after the integration. Extensive experience with cross-chain protocols also enables Synapse to help you think about mechanism design as you take your token multi-chain. Combined with an emphasis on safety and user experience means that Synapse not only offers the best product, but the best experience.
We require the following information to kick of the Synapse xAsset upgrade process:
- Token contract address
- Chains you wish to bridge to
- Which chains is the asset currently deployed on
- Official Logo (SVG preferred)
Our partners have the option of selecting a single destination chain or any combination of chains that we support. The first rollout takes about one week after confirming the addition of the token onto the network. Tokens can be added onto all Synapse-compatible networks at once with minimal additional effort.
Synapse xAsset Submission Form
If you’d like to upgrade your asset into a Synapse xAsset, fill out the following form and our team will reach out with next steps.
Welcome to the Synapse ecosystem!
Synapse is a universal cross-chain liquidity network that connects blockchains by offering an extensible cross-chain communication protocol that supports assets, smart contract calls, and more. By leveraging Synapse, blockchains can easily and securely interoperate with each other, and developers can build truly cross-chain applications including cross-chain DEX, lending platforms, margining systems, derivatives markets, yield aggregators, and much more.