How to Invest in SyncSwap on Notum

Decentralized finance changed the world forever since it offered people a revolutionary way to use their finances. Now users do not need central authorities and banking services, as the decentralized nature of cryptocurrency allows them to make transactions, exchanges, invest and even lend and borrow assets on their own. None of this would be possible without decentralized exchanges, which give users freedom and power over their funds.

Both DEXs and other DeFi platforms use AMMs or automated market makers - special algorithms that replace actual market makers with liquidity pools. It is this innovation that allows users to safely and seamlessly use cryptocurrency, since AMMs allow people interact with smart contracts, and not with each other.

Liquidity pools themselves play a huge role in the DeFi space, as they help users exchange one token for another without a trading partner, take lending and borrowing to a new level, and deposit assets to receive fairly high rewards.

Notum will take a closer look at SyncSwap - a protocol that allows users to trade cryptocurrencies and invest in liquidity pools. We will also pay attention to SyncSwap investment strategies that will allow liquidity providers to receive decent profits for depositing assets in 2024.

SyncSwap Finance: the Essentials

• TVL: $77,5M
• Risk Level: Medium
• Blockchains: ZkSync Era, Scroll, Linea
• Foundation Date: 2022

First of all, SyncSwap is a seamless and efficient DEX on zkSync Era network, which is considered the future of Ethereum development. zkSync is a special tool created on the basis of zkRollup, which is necessary to speed up the processing speed of transactions with Ethereum (from 15 to 2,000 transactions per second).

SyncSwap is based on zero-knowledge technology and gives a large number of people access to simple and low-cost DeFi with completely secure Ethereum. All this is achieved by using a sidechain to store data, while the main blockchain does not need to perform this role. This is where the zero disclosure protocol comes into play, verifying data before sending it to the main network.

Important! zkSync operates on zero-disclosure as it combines a high level of security, excellent scalability and great privacy. Besides, since zkSync is compatible with EVM, this indicates a good level of adaptability and the ability to use SyncSwap with other platforms built the same way.

The very idea of SyncSwap is to create a universal DeFi center that will have a number of innovative features, be completely seamless, easy to use and provide access to DeFi products for those who have not even heard of Ethereum.

«The protocol is designed to be the exchange layer and a solution to liquidity on the zkSync at the protocol level. It is fully open source and composable, removing the barrier to integrating and embracing the zkSync ecosystem» - SyncSwap Gitbook.

SyncSwap combines complete security, low-cost fees and a pleasant user experience. The platform's functionality also has a number of unique features, such as the ability to exchange assets in three networks, investing in liquidity pools, supporting pool gauges, advanced routers, customizable commission structure and much more.

SYNC Token Airdrop

Currently, SyncSwap is the largest DEX in the zkSync ecosystem. And on April 5, 2023, the project team announced that a new token called $SYNC will be released soon. $SYNC is going to be the utility and governance token of the SyncSwap protocol.

Total supply of SyncSwap token will be 100,000,000 SYNC. Regarding distribution, the official website of the platform only says that $SYNC tokenomics will be released soon. The project team has not officially confirmed the SyncSwap token airdrop yet.

More information about the token and future updates can be found on the SyncSwap's GitBook.

Why Invest in Liquidity Pools with SyncSwap?

SyncSwap is a protocol that continues to grow and evolve while offering unique and innovative features to its users. The main ones are:

Pros

Community ownership

SyncSwap was originally created in order to be owned by the community, which means that it is the users of the platform who take responsibility for programs or activities. Moreover, the community was involved in the creation of SyncSwap from the very beginning.

Complete security

The platform offers users the same level of security as the Ethereum mainnet. In addition, SyncSwap has undergone numerous audits from leading security firms such as Zellic, Halborn and others.

Multi-Pool technology

SyncSwap DEX uses new generation Multi-Pool technology, which allows to integrate various pool models and optimize them for different use cases.This technology not only supports different AMM algorithms, but also provides more choice for investors and enables higher capital efficiency.

Composability

SyncSwap DEX is designed to easily integrate with other protocols and be fully composable.

Pool options

The protocol offers liquidity providers two types of pools - Classic and Stable, each of which includes a large number of investment options.

Dynamic Fees

SyncSwap has customizable and variable trading fees that can be flexibly adjusted in accordance with market conditions or community opinion.

Title

Efficient trading

SyncSwap: Investment Strategies

As said, SyncSwap allows users to invest in liquidity pools on three different networks - ZkSync Era, Scroll and Linea. In order to provide liquidity, the user must connect one of the proposed crypto wallets, after which they can select the suitable pool option.

On the main page, the platform offers investors trending pool options, as well as classic and stable pools. Let's look at two popular investment strategies on SyncSwap that will allow you to get fairly large rewards for providing assets.

ETHUSDT-C Pool

This investment strategy allows users to deposit their USDT and ETH cryptocurrency in the ETHUSDT-C classic pool in an asset ratio of 50 to 50. This pool has a TVL of over $3,031,600, which indicates a great level of security and trust on the part of users. Total APR for providing liquidity to the pool is 30.1%.

ETH - USDC.e Pool

Another classic liquidity pool on SyncSwap consists of 50% of ETH and 50% of USDC.e and allows investors to deposit these assets to receive rewards. The pool has a huge total value locked of over $25,086,200, which means that the invested cryptocurrency is safe. Total APR for liquidity provision in this pool is 20.19%.

If you want to invest in pool options with maximum rewards, we advise you to consider Zeek Meow with total APR of 254.2% or Long Mao with 219.7%. Those interested in stable pools can pay attention to [Stable Haven](http://stable%20haven/) strategy with a total APR of 7.3% and TVL of over $4.7 million. So, regardless of your criteria and preferences, you will be able to find an investment option on SyncSwap.

SyncSwap: Risks & Disadvantages

SyncSwap is undoubtedly a protocol that offers a huge number of benefits, allowing people to use the DeFi space in a simplified way. However, it still has its risks that are worth taking into account before choosing SyncSwap for liquidity pool provision.

Cons

Impermanent loss

Like other liquidity pool providers, SyncSwap has the risk of impermanent loss. This happens when users provide assets to the liquidity pool and its price in the pool is different from when they initially deposited in them. Thus, investing in liquidity pools always carries the risk of losing part of your assets.

Smart contract risks

Any DeFi platform operating on smart contracts is subject to risks associated with it. Thus, vulnerabilities and bugs in smart contracts can also negatively affect the user’s investments.

Platform's complexity

Since SyncSwap is an entire ecosystem that allows users to trade assets and invest crypto in liquidity pools on three networks, some investors may find it quite difficult to understand how it works. Huge number of investment pools can also lead to difficult choices and poor decisions.

Market volatility

During market price fluctuations, users can also experience some liquidity issues, which may complicate assets’ withdrawals when needed.

Notum’s Verdict

SyncSwap is a fairly large platform that acts as a DEX exchange and offers users a large number of trading solutions in three networks. With a TVL of over $77.5M, the platform demonstrates a high level of security and trust from users. SyncSwap is completely community-driven protocol offering a number of innovative features that make its use easier and more comfortable.

The protocol has multiple investment opportunities and offers users to deposit assets into numerous liquidity pools. Users easily explore the options and choose an investment strategy with the desired level of risk, TVL and total APRs. Convenient division of pools into trending, stable and classic makes the process even simpler and smoother.

Despite a large number of interesting features, such as multi-pool technology, dynamic fees, community ownership, and efficient trading, SyncSwap is associated with some risks, the main of which is impermanent loss. However, if you are looking for a secure liquidity pool provision platform with a simple interface and high rewards, SyncSwap may be exactly what you need.

Disclaimer: Notum does not provide any investment, tax, legal, or accounting advice. This article is written for informational purposes only. Cryptocurrency is subject to market risk. Please do your own research and trade with caution.