Provide personal or organizational details, including applicant name, contact information, and any associated organization. This information ensures proper identification and communication throughout the grant process.
Team Members and Qualifications:
Aurelius - Core Team Member
Socrates - Core Team Member
Moses - Core Team Member
The team members above are a fraction of the contributors to the protocol but contribute to development, maintenance and growth of Synapse Protocol.
Detail the requested grant size, provide an overview of the budget breakdown, specify the funding and contract addresses, and describe any matching funds if relevant.
Synapse will match the grant fully as well as continue to provide liquidity mining rewards on Arbitrum. In the past year, Synapse has supported the Arbitrum ecosystem with 4M+ SYN($3M+).
Grant Breakdown: [Please provide a high-level overview of the budget breakdown and planned use of funds]
This grant’s aim is to achieve two primary objectives:
Slippage-free bridging - 1.5M ARB will be used to support faster and cheaper bridging. Using Synapse’s concentrated liquidity pools and traditional stableswap pools, Synapse’s aim is for any Arbitrum user to bridge up to $5M slippage-free. Concentrated liquidity bridging is similar to going from Uni V2 to Uni V3, allowing slippage-free bridging. This will massively improve Arbitrum’s UX, lowering costs for users and incentivizing users to bring their assets in from other chains.
Support Arbitrum partners - Synapse is the native bridge partner for many Arbitrum tokens including GMX, FRAX, OHM, VSTA, SDT etc. 500k ARB will be used to support these projects and their users bridging to Arbitrum. Users bridging partner tokens to Arbitrum as well as new tokens launching on Arbitrum will receive gas & fee rebates.
To date, Synapse has facilitated $8B in volume across 700k transactions and 200k wallets on Arbitrum, bringing billions of dollars of stablecoins and other assets to Arbitrum. Additionally, Synapse is the native bridge for over a dozen projects including GMX, FRAX, etc to allow their users to bridge their tokens to Arbitrum.
Funding Address Characteristics:
Funds will be deposited to the Synapse Treasury wallet on Arbitrum.
Clearly outline the primary objectives of the project and the Key Performance Indicators (KPIs) used to measure success. This helps reviewers understand what the project aims to achieve and how progress will be assessed.
- Encourage new $$ into the Arbitrum ecosystem. With concentrated liquidity, Arbitrum will be the only L2 to have slippage-free bridging from any chain. We expect this grant to bring $3B net new dollars into the ecosystem.
- Support & grow existing Arbitrum projects. Today, Synapse is the native bridge for GMX and dozens of other Arbitrum native projects. By subsidizing gas & fee costs associated with bridging these tokens, more users and developers will be encouraged to join the ecosystem.
- According to DefiLama, 45% of Synapse TVL is on Ethereum and 40% is on Arbitrum today. We anticipate Arbitrum to dominate Synapse TVL and reach 70%.
Between a large cross-chain user base and innovative cross-chain technology, the goal is to bring new users, assets, and dollars into the Arbitrum ecosystem. This is accomplished through Fast bridging for users up to $5m, Supporting existing Arbitrum Protocols, and Encouraging new users and developers.
Fast bridging through Concentrated Liquidity is a new paradigm that will expedite the bridging process and make bridging more affordable. Success in this initiative includes attracting liquidity, shorter bridge times, and volume through the new pools.
Support for existing Arbitrum protocols is focused around initiatives that encourage users to cross-pollinate protocols on the chain. Gas rebates & fee rebates will support projects and their users.
The objectives here follow the tailwinds of current Synapse efforts in the Arbitrum ecosystem Synapse has already facilitated nearly $8bn of volume, ~200k users and 700k transactions on the L2 and is uniquely positioned to bring new dollars into the Arbitrum ecosystem and direct them to key protocols.
Key Performance Indicators (KPIs): [Specify the KPIs that will be used to measure success in achieving the grant objectives]
Some milestones are:
- Improve Bridge Quotes: Slippage free, instant bridging on up to $5m through Concentrated Liquidity
- Deeper Liquidity Pools: $60m in TVL on synapse stableswap pools
- Increase assets on Arbitrum, we anticipate this grant will drive $3B of net new volume(based on existing incentives) on Arbitrum
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?: [Provide details]
Synapse Protocol expects to foster growth and innovation from the grant through two key mechanisms: Making it easier to get assets onto the chain, and improving the cross-chain experience through partnerships in the ecosystem.
The first goal is to make it easier to bridge assets into the ecosystem, this means cheaper, faster, safer, and more user friendly bridging. Concentrated Liquidity is a novel way to enable slippage-free, fast bridging for anything under $5m. Cheap and fast bridging is crucial for increasing the amount of dollars that enter the ecosystem. Beyond new bridging models and subsidizing liquidity, creative ways to encourage old and new users are from gas airdrops to subsidized fees, which will help to funnel liquidity and users into the Arbitrum Ecosystem.
The second goal is to build deeper integrations and tooling with existing Arbitrum projects. Synapse already has key strategic integrations within the ecosystem: the native bridge for GMX, core integrations with Uniswap, Balancer, Olympus DAO, and Frax. Further tying cross-chain support into decentralized applications, in a way that is intuitive, encourages the use of new applications in the ecosystem.
Synapse is eligible for the Pinnacle grant:
- Has been live on Arbitrum for 22 months
- Has $40M in TVL on Arbitrum
Deploying shortly after mainnet launched, Synapse was one of the first protocols to arrive on the chain, and to date has facilitated $8bn of volume, ~200k users and 700k transactions.
Synapse also has made a strong effort to create deep integrations with top tier Arbitrum projects, serving as the native bridge partner for GMX, and bespoke integrations with 4 more of the top 10 TVL projects on the chain.
Execution Strategy: [Describe the plan for executing including resources, products, use of funds, and risk management. This includes allocations for specific pools, eligible assets, products, etc.]
The execution plan is to deploy liquidity emissions and gas/fee rebates as the streamed ARB comes in.
Smart contracts to stream these funds will be developed by contributors to the Synapse DAO and the contracts will be managed by the Synapse DAO.
Grant Timeline: [Describe the timeline for the grant]
The timeline for the grant is Q4 2023. Deployment of funds into initiatives would begin soon after the grant.
Provide details about the Arbitrum protocol requirements relevant to the grant. This information ensures that the applicant is aligned with the technical specifications and commitments of the grant.
Synapse is deployed to 19 other chains but Arbitrum is where 40% of all Synapse TVL lives(only Ethereum mainnet is bigger).
Synapse is deployed to 19 chains, the entire list can be found at docs.synapseprotocol.com
To date, Synapse Protocol has facilitated over $2.5bn of bridge volume, $8bn of total volume and 170,000 wallets have interacted with the protocol just on Arbitrum. Synapse has also built strong relationships and integrations with top protocols on Arbitrum like GMX, Balancer, and Sushiswap.
Synapse protocol remains the only way to bridge native GMX, and has also made meaningful contributions to the developer ecosystem of Arbitrum by building integrations on top of existing Arb protocols and open source development.
Check out the data here: Synapse Arbitrum Stats - Protochain Research
Synapse Labs just announced the Synapse Interchain Network, a new primitive in enabling a cross-chain future. Synapse sees Arbitrum as leading the way for L2’s and the home of many important decentralized applications core to the multi-chain thesis.
Provide details on how your team is equipped to provide data and reporting on grant distribution.