What is Sync Network?
The SYNC Network is a game-changing platform in the world of DeFi. It offers a solution to bring stability and risk mitigation to the DeFi ecosystem by providing long-term staking through CryptoBonds. The network operates on the Layer 2 platform and uses Non-Fungible Tokens (NFTs) to create cryptocurrency bonds that earn interest. The CryptoBonds are a new type of financial primitive, a digital asset that provides the holder with the principal amount plus the earned interest in a fully tradeable NFT. This NFT can be sold on secondary markets such as OpenSea and Rarible at any time.
CryptoBonds are the heart of the SYNC Network. They are fully tradeable ERC-721 NFT tokens that lock in liquidity on Uniswap. The SYNC platform mints two types of tokens; an ERC-20 awards token for Uniswap Liquidity Providers and an ERC-721 NFT that bonds Uniswap liquidity pairs to SYNC tokens. The bonding period can range from 90 days to 3 years, during which the holder earns interest. Upon maturity of the CryptoBond, the holder receives back the original investment plus the earned interest.
The CryptoBonds are made by bonding liquidity pair tokens with an equivalent value of SYNC tokens at the current mining reward rate. This process is called ‘bonding’, where tokens representing the creator’s share of a liquidity pool, such as Uniswap ‘liquidity-tokens’, are bonded with an equal value of SYNC tokens for a specified period.
Another noteworthy feature of CryptoBonds is that they offer individualized liquidity mining rewards that are adjusted daily based on supply and demand in the liquidity pool. Furthermore, the bonds are minted with rare, one-of-a-kind artwork, making them even more unique and valuable.
The SYNC Network was founded by a talented group of agile developers, but it operates as a community-governed, fully decentralized DeFi ecosystem. The platform is governed by token holders who propose initiatives for community voting. CryptoBond holders have the most voting power, with the more CryptoBonds held, the greater the voting power. However, any SYNC token holder can create a governance proposal that can be voted on by the community.
The SYNC Network was designed to be used on Uniswap and can be found there. However, the team is actively exploring integrations with other AMMs and DEXes for the future. Whether you’re a seasoned DeFi investor or just getting started, the SYNC Network is a platform worth exploring and keeping an eye on.
The investment information, comments, and recommendations provided here do not fall under the scope of investment consulting. Therefore, making an investment decision based solely on the information and comments provided here may not yield results that meet your expectations.
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