Due to imperfect technology or structural flaws in the design of the economic model, many defi projects eventually fell into a death spiral and could not escape the fate of returning to zero. At a time when memes and Dogecoins are rampant, how can we regain the former glory of DeFi? syncus may be a potential solution.
Preface
In the last bull market, defi was widely regarded as one of the most disruptive innovations in blockchain technology. However, great concepts often face many challenges. Due to imperfect technology or structural flaws in the design of the economic model, many projects eventually fall into a death spiral and eventually fail to return to zero. At a time when memes and Dogecoins are rampant, how can we regain the former glory of DeFi? syncus may be a potential solution.
syncusdao
syncusdao is a decentralized currency reserve protocol deployed on the zksync era chain, focusing on defi applications that develop and thrive in the zksync ecosystem, and providing a liquid market for sync holders. syncus is committed to becoming the center of the zksync defi ecosystem, a true decentralized "bank" that provides customers with lending, guarantees, banking services, stablecoin services, interest rate accounts, mutual funds, brokerages and exchanges.
zksync
On the defi track, zksync era, as an extended solution for Ethereum layer 2, plays an important role in promoting the development of the Ethereum ecosystem with its high efficiency, low cost and strong security. This provides a feasible, high-performance platform for defi projects, and it is against this background that syncus was born. How
can better attract and utilize the current liquidity of more than one billion US dollars on the blast chain has become a question that all ambitious development teams in the crypto world must think about, and zest has given their answer.
Core Concept: Redefining Game Theory—How to Solve the Prisoner's Dilemma The core concept of
syncus is to redefine the application of game theory in the defi field, and is committed to breaking the zero-sum game nature of other conventional protocols and transcending the prisoner's dilemma by designing a mechanism. , thereby creating an ecosystem from which all participants can benefit.
Olympusdao's ve(3,3) strategy flaw
Before formally interpreting the redefinition of game theory proposed by syncus, let us first review the success and decline of olympusdao. olympusdao is a groundbreaking project in the defi space that aims to create a decentralized reserve currency protocol using its native token ohm. Through the innovative ve(3,3) model, olympus achieves rewards for positive behaviors that are beneficial to the collective and solves the problem of dilution of the rights and interests of token holders to a certain extent. However, although the (3,3) strategy adopted by olympusdao is innovative, it has a flaw in the assumption that pledges need to be bound, and this assumption does not fully conform to reality. In practice, bond buying behavior in the market deviates from expected participant behavior.
syncus Optimization based on ve(3,3) model The design concept of
syncus is to transcend the traditional prisoner's dilemma by creating a mechanism in which each participant's behavior can promote the overall interests of the ecosystem. In this way, even in the presence of potential competition or opposition between participants, the entire system can still achieve a win-win situation. The strategy adopted by syncus ensures that dao and its long-term stakeholders (token holders) still benefit even in actions that appear to be detrimental to the system. This mechanism is similar to a decentralized casino where long-term participants can always profit from the system.
Resilience of two-player model with sync
In the two-player model within syncus, any sale of sync will cause the seller to lose, but the stakeholders will benefit. This dynamic ensures that the value of dao continues to flow. At the same time, every transaction will bring benefits to dao. Even if the token price remains unchanged, dao benefits by extracting a certain percentage of taxes from each transaction. This mechanism attracts more participants to join, forming a Self-sustaining ecological cycle. This model is fundamentally different from a typical crypto Ponzi scheme or meme coin.Even if sync's activity wanes, remaining apy distributions will reignite interest, thereby promoting a recovery cycle. For syncus, a better graph would be one that describes the actions taken by a player and the results for that player and dao:
In summary, syncus aims to optimize its strategy by cleverly utilizing game theory principles and through a series of innovative measures. In creating a defi ecosystem that can not only solve the collective action problem caused by the prisoner's dilemma, but also ensure the mutual benefit of dao and its participants. We will introduce in detail the two main optimization measures implemented by syncus later.
sync token design
syncus’ token economic model is a key component of its mechanism design. syncus's governance token $sync, the total number of tokens is 4,186,731,698 sync. As of March 18, the sync token price was 0.03071, and the total market value was approximately 130 millions. These features ensure that the interests of token holders are closely aligned with the long-term success of the entire ecosystem. From token issuance and distribution to its application in governance, syncus aims to ensure a transparent and fair economic model in which the token economic model evolves in parallel with the development stages of its defi platform.
syncus's innovative strategic optimizations
syncus's adaptive tax strategies
syncusdao was designed with the long-term sustainability and longevity of its ecosystem in mind. To achieve this, they implemented a flexible tax regime for sales and pledge transactions. This approach ensures syncus can adapt to market fluctuations, maintaining stability and growth over time. Specifically, the syncus protocol dynamically adjusts sales taxes and eliminates staking taxes based on market fluctuations. During periods of significant price increases, Syncus will temporarily increase taxes on sales and staking transactions. The purpose of this is to reduce speculative trading and ensure the stability of the protocol. During periods of market stabilization, taxes will be reassessed and reduced accordingly. This adjustment is also affected by the current staking apy, ensuring that the tax policy remains fair and proportional to the benefits earned by stakers.
Syncus’s treasury-backed token mechanism
In addition to innovative adaptive tax strategies, Syncus has also introduced a unique mechanism designed to provide sustained high APY by growing its treasury, thus Create a new paradigm in the defi space. Syncus recognizes that until it reaches significant market share, demand for Sync will come from the high APY it offers. In order to maintain and grow apy, the core issue facing syncus is how to grow its treasury. Through the lessons learned from olympusdao, Syncus pointed out that although bond issuance can increase treasury, it has a dilutive effect on holders, and if bond issuance is removed, it will be difficult to maintain an attractive enough high yield. Furthermore, early investment activity and liquidity provision did not consistently provide high enough yields to grow sync's market share.
Therefore, syncus innovatively combines the tax mechanism with olympus’s treasury distribution method to create a new type of token. By taxing every operation such as buying and selling, and using these taxes to fund the treasury, real income is generated for holders. Such a model design theoretically produces a self-growing flywheel effect. Syncus creates a flywheel effect similar to olympusdao by capturing the demand for sync and converting it into the growth of the treasury, but more sustainable: high yield -> More demand -> Transaction volume -> Treasury growth -> More revenue -> More demand. This cycle is self-reinforcing, ensuring that every token has real value.
Goals and Vision
syncus positions the measure of success in the benefits brought to various stakeholders, creating maximum value for long-term holders of sync, not just the value of the token. This strategy ensures that participants can continue to receive returns and profits no matter how market prices fluctuate, promoting a view of success that values sustainability. The short-term goal of
syncus is to grow market share and create value for holders, while the long-term goal is to become a decentralized, treasury-backed protocol. Once it reaches significant market capitalization, syncus plans to invest in the zksync ecosystem and build its own product ecosystem, aiming to create a true stablecoin that automatically generates income.
Summary
syncus represents the arrival of a new era of defi, learning from past experiences and developing towards a more stable and sustainable future. Using game theory, it goes beyond the traditional prisoner's dilemma model and proposes a model that is more beneficial to itself and its long-term stakeholders. By implementing transaction taxation and treasury mechanisms, it encourages individuals to make positive behaviors that ultimately benefit the collective and avoid falling into a death spiral. This innovative move by
syncusdao not only brings new ideas to the defi field, but also provides a solid theoretical foundation for its long-term development and sustainability. All in all, as more and more innovative defi projects are springing up, we can expect the market to regain confidence in the defi track, allowing it to still have the opportunity to take the lead in this bull market. Coquettish.
