Name of Project / DAO
Application type
Port / Partnership
Proposal overview
Synapse is the leading cross-chain bridge & AMM with roughly $700mm in TVL and support for 6 EVM-compatible chains. These currently include Arbitrum, Avalanche, Binance Smart Chain, Ethereum, Fantom, and Polygon.
By deploying on Harmony, Synapse will provide a seamless on-ramp for users to onboard assets onto Harmony from any currently supported chains, while future proofing interoperability with any chains that Synapse deploys on in the future. The Synapse bridge will also airdrop $ONE to users who bridge to Harmony to immediately have enough to use for gas.
Synapse has seen ~$2 billion in bridging volume over the past 60 days since launching, and every new chain that we deploy on quickly sees a $50m - $150m TVL increase, alongside with new user inflows through the bridge.
We expect to deploy Synapse onto Harmony in the coming days.
Proposal ask
$250k in ONE upon deployment to be used for initial liquidity incentives
Justification
To allow for large-scale transfers & efficient bridging from any of the other chains into Harmony, a deep liquidity pool is needed between a Synapse wrapped stablecoin, nUSD (Nexus USD, backed by ETH stablecoins), paired with 1DAI, 1USDT, 1USDC. This liquidity allows for Harmony users to directly reach the desired canonical assets. To help incentivize this liquidity, Synapse will more than match the $250k in ONE with SYN incentives.
Metrics for success
We expect to reach a baseline of $30-40m in TVL quickly after deploying, and will track Harmony chain growth via DefiLlama + bridging volume to evaluate what liquidity and bridge utilization should look like. The Synapse DAO can then make adjustments to SYN incentives to allow for greater usage.
Typically after Synapse deploys on a new chain, an influx in chain inflows can be evidently seen.
