Welcome to the #ZeFi AMA with SYNC Network!
So, today we’re joined by Scott@Scottbondsman) and Frankie from SYNC. Just to give a bit of a quick overview of the project before allowing them to explain in their own words, SYNC aims to bring a bit more of a long-term perspective to cryptocurrency, by leveraging lots of wonderful bits of blockchain technology to issue financial instruments like bonds. That’s just a very topline summation, so Team SYNC, would you please care to explain what SYNC actually is in a bit more detail?
Scott: Thank you for the question, good summary as well.
The SYNC Network is composed of two main contracts: the SYNC ERC-20 contract and the CryptoBond ERC-721 contract. SYNC tokens have an undefined total supply with inflationary and deflationary attributes through the interactions with CryptoBond investment. The name comes from the bonding of liquidity pairs and our own token. CryptoBonds introduce proof of long-term position in DeFi liquidity pools, and will naturally strengthen the core of DeFi finance as a whole. They are a tradeable, long-term (90 days — 3 years) stake — bonding Uniswap liquidity-pair tokens together with SYNC. Deflation of the SYNC currency happens when CryptoBonds are created, burning SYNC from the total supply. When created, a CryptoBond locks liquidity-provider tokens with the corresponding dollar-to-dollar value in SYNC at the currently offered interest rate of SYNC. The longer the CryptoBond stake, the higher the interest offered. When a CryptoBond matures and is claimed by the holder, the SYNC re-enters the market, minting the principle plus interest.
ZeTeam: 90 days to 3 years, are there any other maturation periods offered between those two lengths of time?
1,2 & 3 year time durations for the cryptobonds
Someone came prepared 🙂 Interesting to hear about the proof of long-term position in the defi space, in a time while waves happen on an hourly basis. 90 days to 3 years seems passionate, but hopefully doable for you guys.
I am still trying to deconstruct the CryptoBond definition more, and to be honest it is still so much complicated for me
i think it will become more clear with a visual of a test net NFT
here is an example of a cryptobond. as you can see this bond contains 22.8832 LPTs of ETH/LINK and equal $ value of SYNC tokens
the term is 180days long and will pay 44.88 percent on the sync tokens inside. upon maturation you will also get the uniswap LPTs back plus the fees they accrued
the time periods were chosen for a few reasons. first in solidity in program that longer term bonds always out perform compounding shorter ones. in order to do this math operation in solidity because of GAS restrictions having say the ability to create bonds for a random amount of days would be troublesome. also we felt that traditional bonds have specific time duration. we didnt go out to 30 years
And is that percentage return constant across all LP/SYNC pairings, or could, say, an LP pairing on a smaller alt come with the guarantee of a higher interest rate because of the smaller current marketcap? I.E. do all bonds issued for the same length of time come with the same % rate?
every LPT we list will have a individul daily interest rate based on the supply and demand of that bond pool
Is there any documents or review that explain the SYNC ecosystem in a less complicated way for an average enthusiasts?
we are currently having video explanations of the project with a walk through of the dapp. should be out within a week.
I was happily reading the white paper earlier when all of a sudden A WILD ALGEBRAIC FORMULA APPEARS and I just had to skip ahead to the next portion of text
Yes the whitepaper is math intense.
Is it going to be on your own youtube channel or through golden yogi because the youtube link on your website links to a Golden Yogi video.
Ivan on tech
are a few of the youtubers we have lined up
the math is to protect from over inflation of the currency. while still offering competing interest rates. the available rates will change daily
here is a model of the design intension of the rates
Staking has really taken the altcoin space by storm, along with the increased adoption of NFTs. Given volatile market cycles in crypto with years going by with almost no new investor action, what are the metrics that you measure the success of your project aside from price of the ERC-20 token and NFT bond values? What are your overall marketing plans and strategies to scale in the coming months and years?
Great question. all tokens that we whitelist for cryptobond creation will feel the effect of a stronger liquidity pool. the fact that SYNC network aims to help the crypto space and other project a wonderful start to sustainability. as for a metric of success other than price appreciation i think if in 1 year when a new project comes the 1 question that will be asked is is the liquidity pool bonded then we are successful
the amount of rug pulls we have seen this year alone is incredible. projects will under go vetting before being whitelisted. code audits will be a must.
On the opposite side of the spectrum to rug pulls, I noticed when reading through your audit (https://blog.coinfabrik.com/cbond-smart-contract-audit/) that it passed without any real issues of any severity. But one of the functions that did initially need a little fix was for a lucky token ID system, could you tell us a bit more about that please?
yes the lucky functions is not based on random probability. we have the ability to turn on and off the lucky bond function for promotional periods.
they were concerned it could be gamed. but with the ability to turn that one function off it isnt an issue
most of the tokens we are listing at the time of launch will be large known tokens.
Yes, but could you explain to the crowd here what the lucky bond function actually is, and what it does?
ah yes. at ramdon times you will have a 1 in 100 chance of getting a lucky bond. lucky bonds come with very elevated interest rates and the nft will be different
the artwork for the bonds will change based on time duration and LPT selected
Will people know it’s a lucky bond without, say, making another for the same pair at the same time or recently previous?
yes that img is just from the test net. so we realized that actually having the img say lucky bond will be included on the main net
we are still polishing the bond imagery and text, we will probably add an indication on there that it is lucky. we do however already have a full integration with openSea metadata and in there you will be able to see many different categorical variables that you can also search and filter by (including if its lucky)
Do you think users will think to use cryptobonds and risk huge impermanent loss for three years for an extra 2% when they are seeing liquidity pair total supply fluctuating?
i think that this is definitely a risk people will have to assess for themselves, although we will be also offering totally stable pairs like USDT/DAI etc..
The cool thing about the sync contract is that it will keep increasing interest rates until it find the price at which users will enter. maybe it wont be at 2% obviously, but it may be at 300%. the contract tries to self balance
contract will be completely open source on launch, everything will be available on launch. audit is already viewable here:
With so many holders owning such large bags of Sync, why would project creators choose Sync Cryptobonds over another liquidity locking mechanism like Unicrypt when they know they are at risk of large Sync bag holders dumping on them?
So why are all those addresses holding all those sync tokens? are they meant for dispersal?
there are 16 million tokens currently. the FRS will push out 600million tokens.
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Currently NFTs are the new trend that projects are trying to exploit. What are the most important features for distribution an uses of NFTs, how exclusive & scarce will be these collectibles?
the interesting thing about financial nfts is that there is both a collectible facet and an implicit value (the LPT tokens placed into it). This is the first NFT of its type so we are excited to see how these will interact, and the secondary market that may follow
as collectables lucky bonds and rare bonds could be seen as having a higher intrensic valuse but our approach is more to have financial NFTs over art NFTs
How will you generate profits or income to sustain SYNC Network and what is the revenue model? How will it benefit your investors and your project?
50% of the Eth recieved from the FRS will be used to lock sync liquidity on uniswap. remaining team coins after our cryptobond creation will be used for partnerships with other projects.
Hello, I see that you have the dual model of the ERC-20 token and the ERC-721 for NFTs. Did you look at using ERC-1155 for the NFTs? I believe it’s way more gas-efficient, so could have an impact if you do a high volume of bonds
We have thought of implementing this standard for a possible version 2 of cryptobonds.
At the moment, what’s SYNC focusing on? Building and developing product, getting customers and users, or partnerships?
finishing the beta test and making last minute adjustments to the dapp.
Personally, I consider two things in any project: the security and ease-of-use. Does SYNC have these two things?
we have worked very hard on contract security. we are resiliant to the typical defi attacks like flash loans because of the long-term nature, and the gas costs that would be required. We went with a good brand (coinfabrik) for the audit, and also had private auditors help us along. we have had security in mind since day 1. As far as ease of use goes, we’re trying very hard! this is a complicated idea so the frontend product is just as important to make it simple for people to create and trade crypto bonds. i think you will like it :)
Do you have any anti inflationary token properties? How will your project benefit the Ethereum ecosystem and is it user beneficial? If yes, how?
yes the math in how the contract generates interest rates is designed to have a net 0 inflation rate. this is the design intension. we can have new tokens minted with 0 to little inflation. this is due to the locking of the tokens in the bonds
How does SYNC plan to dominate the DeFi market?
love this Q. When you look at the uniswap liquidity graph you know it can be pulled in a day — an hour even. Decentralized exchanging risks associated with it because there is no entity to check and balance it. This is great in many ways, but creates a certain uncertainty in other ways. Imagine looking at a liquidity pool graph and seeing some percentage of it as locked long-term liquidity. how much better would you feel that 25% of that liquidity was locked inside of a longterm bond? much better i think. The defi ecosystem needs to become richer in asset types, because this is what helps traditional financial markets build trust too
we can also operate as a utility for new projects to prove they will not rug pull on you.
| as for the teams background I am the project manager and had the original idea for the project. I have a background in mechanical engineering and large scale project management. I got my start in crypto early 2017. Between then and now I have invested in countless projects and have a wide knowledge base of crypto.
The Front end dev has been coding websites for over 20 years and has a background in corporate banking. He has been in the crypto space since 2011 when he started solo mining bitcoin. Since then he has been involved with multiple smart contracts.
Our backend dev has a masters in computer data science. He has spent the past 10 years developing cutting edge AI tech companies. He has been working on solidity smart contracts since early 2018.
Well, that was it!
What a wonderful, informative AMA it was.
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