Proposal to deploy Synapse on Pulsechain

mcbakon

Overview:
This proposal aims to deploy Synapse onto Pulsechain, a new blockchain built as a fork of Ethereum with low transaction fees. By deploying Synapse on Pulsechain, users will gain seamless access to the broader multi-chain ecosystem supported by Synapse, facilitating the movement of assets and fostering interoperability.

Motivation:
Pulsechain has demonstrated remarkable achievements within a short span of time, positioning itself as a promising blockchain in terms of liquidity and trading volume. With its rapid growth and impressive metrics, deploying Synapse on Pulsechain will unlock even greater potential for both ecosystems. This integration will enable Pulsechain users to bridge assets between Pulsechain and the other EVM chains.

Pulsechain metrics:
Pulsechain has achieved outstanding metrics since its launch, showcasing its potential as a vibrant blockchain ecosystem:

3rd (was 2nd for a day in front of BSC) on the Dexscreener leaderboard in less than a week, which indicates strong trading activity and user engagement within the Pulsechain DEX ecosystem.
$125 million total value bridged: including $27 million in USDC, $25 million in DAI, $17 million in USDT, and 9.9K ETH.
Approximately $200 million in daily trading volume over the course of 7 days, with an average of 210,000 transactions per day. These figures highlight the active and liquid marketplace provided by Pulsechain. The high trading volume emphasizes the demand and potential for bridging assets between Pulsechain and other chains via Synapse.

Implementation:
We propose deploying two liquidity pools to cater to the specific asset pairs in high demand within the Pulsechain ecosystem. The proposed pools are as follows:
nETH / "ETH from Ethereum"
nUSD / "USDC from Ethereum"
The target TVL is 1,000,000 USD for both pools.
The proposal requests the Synapse DAO to incentivize these two pools with 2500 SYN per week split for both pools.

Googly

I would vote in favour of deploying there. The DAO can use emissions currently used in Metis where volume is too low to justify having pools.

I would suggest the DAO deploying one pool with nUSD/ USDC / USDT. Have a bit of of higher swap fee than usual (eg 4bps for now) but lower bridge fee in order to
i) keep overall fee unchanged
ii) capture decent fees from USDT/USDC stableswap volume as none currently exists meaning it is quite expensive for users to swap between stables and Synapse can get decent volume there

Deployment subject to volume continuing: if Pulsechain drops below top15 in terms of TVL, suggest the pool is discontinued without requiring further DAO vote.

mcbakon

Googly

The DAO can use emissions currently used in Metis where volume is too low to justify having pools.

Agreed. Transferring Metis emissions would make sense.

Correct me if I'm wrong, you are suggesting dropping the nETH / ETH pool and have one pool comprised of nUSD / USDC / USDT ? Including USDT in the pool is a great idea, Synapse could capture a significant portion of the stablecoin swapping volume. Currently, there is a lack of stablecoin swap options on Pulsechain, making it expensive for users to exchange between USDC and USDT. I believe Synapse could attract substantial volume and generate reasonable fees.

Deployment subject to volume continuing: if Pulsechain drops below top15 in terms of TVL, suggest the pool is discontinued without requiring further DAO vote.

Agreed.

0xbottomseller

Synapse is looking to go towards zero emissions
Dev time needs to be compensated unless we can be sure that volume in and out of the chain will sustainably, without emissions, allow us to recoup money spent on dev time

Would personally prefer a proposal similar to the one Kava posted and got approved:

"The Kava ecosystem has agreed to contribute a $40K grant to Synapse upon successful deployment on the Kava EVM chain, and listing on DefiLlama under Kava. This grant will be paid out in $KAVA tokens. A 30-day moving average of $KAVA will be used to calculate price."

link: https://tinyurl.com/yc7kbbar

mcbakon

0xbottomseller

Synapse is looking to go towards zero emissions

We could periodically reduce the emissions (every 3 months?) on this new pool if volume/transactions are high enough.

To address the concern regarding sustainability and compensation for development time on Pulsechain, I will reach out to the Pulsechain ecosystem. I am not aware of any grants yet.