Syncus, a zkSync-based stablecoin protocol, will launch a new paradigm DeFi lending platform

On December 19, zkSync ecosystem project Syncus announced the upcoming launch of a new paradigm DeFi lending platform, where users can borrow USDC or ETH at a rate of 85% after staking $SYNC to regain liquidity.

Syncus (_Fi) is a decentralized, stablecoin ecosystem protocol that distributes dividends to staking users through transaction tax revenue, aiming to fix and improve the sustainability of Olumpus and build a self-growing treasury system through positive incentives.

Different from the traditional lending model of MakerDAO, AAVE and other platforms that pledge mainstream coins to borrow stablecoins, Syncus realizes the staking of its DAO governance token $SYNC to obtain liquidity, which is due to the fact that Syncus adopts a (3, 3) growth flywheel model similar to Olympus (OHM), and the economic model mechanism will drive its governance token $SYNC to a positive upward spiral.

If a user chooses to sell directly without staking, they need to pay a 15% tax to the Treasury treasury and can only get 85% of the liquidity; if the user participates in staking and lending, only the $SYNC price falls below the amount of the loaned assets, and the collateral will be liquidated, which is the same as the liquidity obtained from selling; Syncus tends to let users prioritize staking, and more and more users choose to staking, and the volume of the treasury fund pool is getting larger and larger, APY The corresponding increase in income will drive users to further staking, which in turn will stimulate the growth of $SYNC value, and if users choose to sell, they will be charged a 15% tax, which also restricts users’ willingness to withdraw to a certain extent.

So this mechanism of operation will eventually produce a growth flywheel: high yields - more demand - more trading volume - treasury growth - higher yields - and repeat.

In contrast, Olympus uses a bond design, which means that as the OHM token grows, users will always receive discounted tokens, which is equivalent to a discounted sale. This mechanism relies too much on the continued growth of OHM tokens, and only OHM price growth will users be motivated to buy discounted futures bonds. But the problem is that if the price of OHM grows to a certain level, someone will always be able to get discounted tokens, which will undoubtedly allow the value of the token to be violently withdrawn by a third party.

Recognizing the potential risks of the Bonds mechanism, Syncus removed the discount sale mechanism and replaced it with a more robust and sustainable mechanism of two-way tax collection + continuous dividends from the treasury.

Coupled with the staking of $SYNC on the Syncsu lending platform, you can get 85% of the liquidity of the mainstream token model, and users will choose to stake their Tokens without pressure, thereby greatly reducing the selling pressure of tokens and providing continuous momentum for their growth. Compared with Syncus’s discounted bond sales model, the discounted ‘cash-out’ model of staking tokens will be more attractive, and it will also reduce the risk of a positive spiral crash cumulatively.

It is understood that zkSycus IDO has raised 187 ETH in 5 minutes, with a current market value of $20 million, Treasury assets of $1.6 million, APY of 116.4% (dynamic floating), and dividends of $1.23 million. The $SYNC market has also performed particularly well in the past week, with its market capitalization increasing by more than 7 times.