SyncSwap

SyncSwap aims to be a one-stop DeFi platform with the security of the Ethereum network and a great trading experience (cheap + fast).

What is SyncSwap?

SyncSwap is currently the highest-ranked project in terms of TVL on zkSync Era. It is a decentralized exchange (DEX) first launched in April 2022. According to DeFiLlama data, as of April 23, 2023, its TVL is approximately $35.23 million. Its minimalist UI design, smooth and user-friendly UX interaction, combined with the faster transaction speed of the zkSync Era network, provide an excellent overall experience, giving a great first impression to users. SyncSwap supports five networks, including zkSync Era: zkSync Era mainnet, zkSync Era testnet, Scroll Alpha (another Layer2 network using zkEVM), Polygon zk EVM testnet, and Ethereum mainnet.

SyncSwap aims to be a one-stop DeFi platform with the security of the Ethereum network and a great trading experience (cheap + fast). Its ultimate vision is to accelerate the adoption of a large number of users in the zkSync ecosystem.

Its core product, the Multi-Pool DEX protocol, has the following features:

Supports multiple AMM algorithms, including Uniswap v2's constant product, Curve's constant sum (more suitable for stablecoin pairs), and Uniswap v3's concentrated liquidity (under development).

Highly customizable fee structure. The fee structure for buyers and sellers may differ, with specifics determined by community voting. A fee discount feature is also under development.

Gas Refund. Due to the use of zkSync, transaction gas fees on SyncSwap are constantly changing, and any unused fees in each transaction will be refunded. Normally, 20%-90% of the gas in each transaction is refunded, automatically executed immediately after transaction confirmation. Users will see savings after each transaction, improving their experience.

Smart routing. Similar to 1inch, SyncSwap also supports smart routing functionality. Smart routing means that since AMM pools are pairwise, if the two tokens you want to trade do not have a direct trading pair (or they do, but with low liquidity), the smart routing feature can automatically help you choose multiple routes, diversifying funds to minimize slippage. In SyncSwap, smart routing only supports pools within its own project and can cross pools with different AMM models.

SyncSwap Incentives and SYNC Native Token

To reward users actively participating in trading and providing liquidity, SyncSwap has initiated a Loyalty Program, which regularly issues reward certificates called ySYNC. The higher a user's trading volume and the more fees they contribute, the greater the rewards they receive. Rewards are distributed to users in the form of non-transferable tokens called ySYNC, with $1 in fees earning 1 ySYNC. However, ySYNC can be exchanged for veSYNC governance rights. Rewards will also be sent periodically in epochs, each lasting 24 hours, running continuously for a month. For more details, please refer to this document.

SYNC is the officially recognized native token of SyncSwap, representing governance rights in SyncSwap. The maximum supply will be 100,000,000 tokens. Specific tokenomics and distribution are still in development, so please stay tuned and follow this document for updates.

How to interact with SyncSwap?

First, users need to transfer assets to zkSync using a cross-chain bridge. SyncSwap offers multiple options on its Bridge page and thoughtfully labels some of them to indicate which are official and which are third-party (highlighting its great user experience).

We recommend using the zkSync official cross-chain bridge, as it is safe and reliable. On the Deposit page, enter your desired amount, preferably choose ETH, and avoid transferring excessively large amounts.

After completing the cross-chain transfer, return to the SyncSwap page and click "Select a network" to add the zkSync network. MetaMask will automatically pop up for confirmation. Once added, you should be able to see the transferred assets in your wallet.

After transferring the assets, you can start to trade. Click the "Trade" button in the top left corner, select your target asset, enter the amount, and in the settings button, set the slippage tolerance range. Beginners are recommended to use the default slippage tolerance range. Finally, click the swap button, and MetaMask will automatically redirect and ask for confirmation. After clicking confirm, the transaction will be automatically executed, and a pop-up notification will appear upon success (the process is very fast).

With some assets in our wallet, we can now try becoming a liquidity provider (LP). Click the "Pools" button at the top, select your target pool, and note that the list on this page will provide the pool type, indicating which AMM model the pool uses. "Classic" refers to the Uniswap v2 constant product model, x*y=k, with evenly distributed liquidity, while "Stable" refers to the Curve-like constant sum model, x+y=k. This page also provides liquidity information and an estimated annual mining yield (this yield changes in real-time and is for reference only).

Enter the target token pair page, click "My position," then "Deposit now," and a deposit page will appear. Providing liquidity requires two tokens, so after deciding on the specific amount for one token, there is a toggle below that can automatically calculate how much of the other token you need to satisfy the AMM's balancing algorithm. You will need to unlock a token that has not yet been interacted with before you can perform the actual deposit operation.

After successfully depositing, you can click "My Position" to view your liquidity holdings! SyncSwap's Chinese official Twitter also kindly summarized some interaction experiences for everyone.