PR with Payload
Summary:
This is a proposal to enable Balancer Gauge for SYNO/wETH 80/20 pool on Arbitrum.
Synonym Finance launched in February of 2024, achieved a TVL in the protocol of $10M+ and achieved a liquidity of $1M+ in the governance token pool 80SYNO-20WETH on Balancer on Arbitrum. SYNO serves as a governance token for Synonym Finance. Much like many protocols in the DeFI space, providing liquidity on Balancer and locking it on the Synonym Dapp provides users with a boost towards emissions as well as share of fees. WIth the introduction of the Gauge, BAL/AURA emissions will now further fuel the incentive for liquidity provision, amplifying the pool’s attractiveness and increasing the size of the pool even further.
References/Useful links:
Link to:
Website: https://www.synonym.finance/
Documentation: Docs: Overview | Documentation
Github Page: Synonym Finance · GitHub
Twitter: https://twitter.com/synonymfinance
Discord: Synonym Finance
Protocol Description:
Synonym Finance is a universal cross-chain money market built for busy DeFi Professionals. Users can lend, borrow and earn rewards across multiple chains without leaving our unified UI. Synonym is a truly cross-chain application powered by the Wormhole xChain technology stack and further enhanced by Circle CCTP. The goal of Synonym is to unify and take advantage of the liquidity fragmented across various chains. Synonym Finance launched on Arbitrum, Ethereum and Optimism Chains.
Motivation:
SYNO/wETH pool is highly important to Synonym as this pool is intended to be the primary source of liquidity on Arbitrum. Additionally, users are incentivized to provide liquidity into this pool as they will be eligible for a boost towards $SYNO emissions as well as share of the revenue. This kicks off a flow where users get emissions - lock liquidity and get even more emissions. The proposed gauge will give the chance to incentivize even higher rewards for the pool, thus increasing the liquidity of SYNO token.
The current sustainable yield for providing liquidity to the pool is around 15%. We expect to significantly increase the APR with enabling Balancer Gauge, via Aura in future. After that, the pool would naturally grow and attract even further user base into the ecosystem. Additionally, we expect to facilitate even further incentivization with Aura or alternatively Hidden Hand, our partners through a connection via Redacted Finance.
Specifications:
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Governance: Synonym Finance governance’s structure is provided here.
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Oracles: Synonym Finance relies on Pyth Price Oracles.
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Audits: Synonym Finance has been audited twice: by Runtime Verification and Ottersec. You can find audits here.
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Centralization vectors: Due to our experience in the space, our governance is set in a decentralized manner and we are further looking to decentralize it even further. Forum - here. Due to the recent launch, the governance process is yet to be kicked off. The DAO is governed by the multisigs on Arbitrum and Ethereum. The smart contracts are verified, and any community member may propose changes or Improvements. There have already been proposals from the active members of the community. All contracts are available in the docs and are easily observed by members of the community.
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Market History: Synonym Finance launched on 6th of February 2024. We have launched after a merger with New Order DAO and an additional raise of $1.5M from investors led by Borderless Capital. We have reached a TVL of $13M and now are expanding into new assets & chains. $SYNO has launched on the same date. Coingecko link. Pool link: Balancer
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Value: The SYNO/wETH pool would be the primary source of liquidity for SYNO governance token. In addition, the Synonym DAO sees a huge value of this gauge in growing the total liquidity locked in the pool to $10M+.
Child chain gauge: 0x26634a2B85831D9916D01Fa6c2489F9c5720600a
Root gauge w/ 2% cap: 0xB9bB09ADCBcaE06F580DA494EE6987dbB083b45f
Specification
Transaction: The Balancer Maxi LM Multisig eth:0xc38c5f97B34E175FFd35407fc91a937300E33860 will interact with the GaugeAdderv4 at 0x5DbAd78818D4c8958EfF2d5b95b28385A22113Cd and call the addGauge function with the following arguments:
gauge(address): 0xB9bB09ADCBcaE06F580DA494EE6987dbB083b45f
gaugeType(string): Arbitrum