Synnax: A Smarter Stablecoin for DeFi

The Problem

1. Centralization Dominance

• Centralized entities control major stablecoins (Tether, USDC., etc).

• This exposes users to censorship risks (e.g., frozen accounts) and privacy issues (data tracking and surveillance).

2. Unsustainable Yield Models

• Decentralized stablecoins rely heavily on unsustainable token emissions or platform fees.

• These models create a zero-sum game, giving users yield at the expense of other users's mistakes.

3. Missed Opportunities

• Over $2 billion in market-making and basis trade yield was generated last year by a handful of insiders.

• These lucrative strategies remain locked behind institutional walls, inaccessible to the average DeFi user.

The Synnax difference

Synnax introduces syUSD, a fully decentralized, over-collateralized stablecoin that unlocks market-making yield for everyone without sacrificing safety or decentralization.

Unlike traditional stablecoins, syUSD goes beyond outdated financial structures by tapping into yield sources like basis trading and arbitrage, ensuring scalable, adaptive returns.

How Synnax Works

1. Deposit Collateral:

• Lock assets like USDC or ETH into Synnax’s smart contracts.

2. Stake Stablecoins to Earn Yield:

• Automated Yield Generation: Smart contracts allocate funds to vetted market makers who employ advanced strategies like:

• Basis Trades: Capitalizing on pricing inefficiencies in futures markets.

• Arbitrage: Leveraging price discrepancies across exchanges.

• Yield earned boosts the collateral value or mints additional syUSD.

3. Governance-Driven Decisions:

• Synnax token holders vote to select market makers and fine-tune strategies, ensuring decentralized, community-driven management.

Why Synnax is Better

Decentralized by Design

Every decision is governed by the community, removing central points of failure and ensuring user sovereignty.

Untapped Yield Sources

Unlike traditional stablecoins, syUSD captures crypto-native yield opportunities like market making, delivering consistent returns in all market conditions.

User Safety First

Funds are secured in audited custodian accounts, shielding users from counterparty risks and centralized exchange failures.

Key Features

1. Over-Collateralized Stability:

• syUSD is always backed by more than $1 in collateral, ensuring price stability even in volatile markets.

2. Transparent, Trustless Design:

• No hidden risks. All processes are fully transparent and governed by decentralized mechanisms.

3. Customizable Yield Options:

• Users choose their risk exposure by selecting collateral types and locking preferences.

Roadmap

1. Q4 2024: Launch syUSD with Proof of Concept for market maker integration.

2. Q1 2025: Integrate ETH-based assets.

3. Mid-2025: Deploy governance innovations like Futarchy prediction markets.

4. Late 2025: Launch AI-powered collateral management tools for a seamless user experience.

Revenue Model

1. Redemption Fees: Applied when users withdraw collateral or burn syUSD.

2. Yield Fees: A share of yield generated by market makers supports the protocol.

Why Now?

• Centralization Risks are Rising: Users need decentralized alternatives as regulators crack down on centralized stablecoins.

• Crypto-Native Innovation: Billions in untapped yield sources like market making are ready to be unlocked.

• AI and DeFi Convergence: New tools enable smarter collateral management and governance, driving user adoption.

Meet the Team

• Eugene: Product visionary with 12+ years in fintech, AI, and blockchain innovation.

• Robin: Veteran developer with 20+ years of experience and deep blockchain expertise

Advisors:

• Market makers and DeFi experts shaping the strategy for success.

Get Involved

We’re building a stablecoin for the next generation of DeFi users:

1. Funding: Seeking investment to expand operations.

2. Collaborators: Join us as advisors or liquidity providers.

3. Users: Be part of the Synnax community, shaping the future of decentralized finance.