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Synapse Chain: Layer0 cross-chain infrastructure in a multi-chain world

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Can Synapse usher in a qualitative change?

Original title: "Synapse Chain: Cross-chain Infrastructure in Multi-chain World"

Original author: @alphanonceStaff

Original compilation: 0x711, BlockBeats

The cross-chain communication protocol Synapse Protocol announced that it will launch Synapse Chain. With all the focus last week on the mainstream Ethereum merger, this news has not received enough attention. This article will explain in detail what is Synapse Chain and its importance.

TL;DR

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1. The nUSD feature makes Synapse a unique cross-chain service;

2. Synapse Protocol may follow Qualitative changes have taken place with the launch of Synapse Chain;

3. Synapse Chain is a single execution layer for different blockchains;

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4. A single execution layer can be the infrastructure for encryption.

Synapse Protocol has been a huge success since its launch in August 2021. Although it does not have as many chains as Celer Network supports, it has a stable user base. Since the agreement was launched, Synapse has completed a total of 987,000 transactions, with a total cross-chain transfer amount of US$11 billion and a total revenue of US$18 million.

If you provide liquidity on Celer Network or Multichain, your liquidity may be transferred to other online. For example, if you provide liquidity on Ethereum, your coins may be transferred to Fantom. When you need to remove liquidity, you also have to use a cross-chain bridge to move stablecoins back to the original chain.

The cumbersome process of liquidity extraction represents a poor user experience for cross-chain bridges. Furthermore, providing liquidity across networks will always make users uncomfortable, given the vulnerability of cross-chain bridges in terms of blockchain security.

Synapse solves this problem with nUSD. Users on Synapse can designate networks to provide liquidity. nUSD is fully backed by USDT, USDC and DAI on Ethereum. When needed, it will be destroyed on the source chain and minted on the target chain. It is recommended to read this article to understand the detailed mechanism. As a result, Synapse has become one of the leaders in the field of cross-chain bridges. The transfer data of each cross-chain bridge in the past 30 days is as follows:

Multichain: 1.67 billion US dollars;

< p>cBridge: $455 million;

Synapse: $241 million;

Stargate: $238 million;

Hop: $115 million.

With its user base, Synapse tries to transition to the next stage.

They launched a new cross-chain product Synapse Chain. Dapps will not need to deploy their protocols to individual chains, only to the Synapse Chain. It is the main function of Synapse Chain to facilitate the cross-chain deployment of contracts.

Synapse uses Optimistic Rollup to provide a single execution layer for various networks. Every block of Synapse Chain will be stored on the Ethereum network, which means almost the same security as the main network. Gas fees will initially be paid in ETH, which will later be changed to SYN.

Currently they have released a Test network for developers to deploy contracts. The recent popular protocol GMX has announced its cooperation with Synapse and plans to deploy the GMX protocol on the Synapse Chain. As a result, GMX no longer needs to deploy its protocol to each network. Synapse can also gain value through Gas fees. Win-win cooperation.

The TVL market share on Ethereum has dropped from 96% in January 2021 to 58% now. With the emergence of new public chains such as Canto, cross-chain expansion will become the only way for many Dapps. In a multi-chain world, a single execution layer of different blockchains will become the basic infrastructure.