Leveraging the advantages of Solana — Exploring Synthetify — the decentralized synthetic asset protocol to satisfy the diversified asset deployment
Question 1: Welcome Norbert Bodziony for the first time to CryptoJ as our guest. First of all, let Norbert Bodziony do a brief introduction to Synthetify as well as its emerging background and its future vision?
Norbert Bodziony: Synthetify is an upcoming Solana based Defi application that enables users creation and exchange of synthetic assets. Synthetify leverages speed and efficiency of Solana to deliver best trading experience ever.
Question 2: Since the establishment of Synthetify , it has gone through a rapid developing process, which can never occur without the effort of your team members. Now let’s invite Norbert Bodziony to do a brief introduction to your team members, including some interesting stories behind the project.
Norbert Bodziony: Synthetify was born on last DeFi Solana hackathon. On Hackathon 100% of code was developed by me and designs by designer that is currently developing all designs for Synthetify. Since Hackatost Most of the team are my friends from university so all of us have computer science background with Bachelors/Master’s degrees. Cool story that we wanted to launch Synthetify over a year ago on Ethereum, but we quickly realized that ETH It’s just too slow and inefficient to handle exchange like applications.
Question 3: Synthetify has always been attracting preferences from numerous investment institutes. Could you share with us the financing process at present?
Norbert Bodziony: So we just finished our private round, here is our announcement: https://twitter.com/synthetify/status/1400806882214830083
We don’t plan any additional rounds right now.
Question 4: We know that Synthetify mainly focuses on synthetic assets. How do you consider the current development status of synthetic assets and what you think will be the future developing direction and application scenarios of this track?
Norbert Bodziony: There is a huge range that we can explore, like synthetic futures leverage or prediction markets. Right now there are no commitments where we are going to expand.
Currently, we are really close to finished MVP that’s going to be audited.
Question 5: We currently already have projects like Synthetix, Linear, Mirror within the track of synthetic assets. Compared with these projects, what are the characteristics and differentiated advantages of Synthetify?
Norbert Bodziony: Let’s be honest Synthetix is too expensive to use. No one is going to pay for 200$ for transaction. Linear and Mirror are more user-friendly but still lack good oracles providers and external integration that can really show potential of synthetic assets.
Synthetify is build fully on Solana that makes it much more efficient and insanely fast in comparison to competition. It’s worth to mention that we are building on Layer one, so there is a wide range of application that will be able to leverage Synthetify.
Question 6: What are the assets supported by Synthetify at present? What are the differences among those assets?
Norbert Bodziony: We are planing currently support only crypto assets like xSOL xBTC we are only limited by Pyth oracle to list specific assets. All of those synthetic are SPL-solana tokens and can be used in other apps like Raydium or Serum
Question 7: Can we consider minting synthetic assets as shorting the asset? How do you encourage the users to mint assets on Synthetify?
Norbert Bodziony: We do not support shorting currently, but this is something that we are going to explore in the future. On launch, we will implement liquidity mining to bootstrap the system then later it will be replaced by perpetual inflation. I expect that other application will be using Synthetify liquidity to quickly enter big positions.
Question 8: How do you track the price of the underlying asset? Do you adopt the price oracle mechanism? How do you ensure the stability of the price among the underlying assets?
Norbert Bodziony: We started with own solution for oracle but right now we fully migrated to Pyth network oracles. They are currently leader in Oracle systems on Solana and provide feeds in sub seconds intervals. In future, we will probably implement other oracles to create the most robust system that we can.
Price stability of assets should be enforced by stakers arbitrage but in early stages of project Synthetify will use some resources to keep prices in line.
Question 9: Can we trade directly between different synthetic assets (xUSD <-> xBTC <-> xSOL)? Will there be any losses such as gas fee payments?
Norbert Bodziony: There will be option to cross trade between all assets listed on Synthetify.
No gas. Gas on Solana does not exist. Each transaction has deterministic fee about 0.00002$, so you don’t have to worry. Also, transitions are confirmed in about 2 seconds, so no more getting stuck in mempool.
Question 10: How is the liquidation mechanism designed?
Norbert Bodziony: Currently it is primitive since i don’t expect much liquidation in early stages.
If your collateral ratio drops below 200% you will have 24 hours to fix it, or you account will be liquidated. Liquidation includes penalty and part of this penalty is moved to system account and later will be used to improve system stability.
All code is of course public on our GitHub, so you can check exact implementation.
Question 11: How do you increase the efficiency and the profit gained from the asset? Will there be any incentive plans such as liquidity mining?
Norbert Bodziony: Yes there will be liquidity mining but its not finalized yet. My main focus on Synthetify will be volume that in the end will mean profit for stakers.
Question 12: Compared with the basic public chains such as Ethereum, Polkadot, and BSC which have already developed as an ecosystem, what are the advantages and characteristics of Solana ecosystem? Which track are you optimistic about and what are the possible weaknesses that may occur?
Norbert Bodziony: All of these protocols are still orders of magnitude slower and more expensive than Solana. That’s it, this is already crushing argument. Of course, Solana is much younger than others once but its completely new architecture is constantly improved with way more flexibility than any of the EVM-based blockchains. For me only weakness of Solana is that there is much higher learning curve than other blockchains. Well in the end all ETH BSC and even Polka are just forks of same system.
Question 13: Following the previous question, why does Synthetify choose to join the Solana ecosystem rather than the other public chains? What position does Synthetify hold in the Solana ecosystem?
Norbert Bodziony: Other blockchains are just too expensive and too slow for users to use building on top of obsolete technology is just a mistake. I want by app to be used by all people, not just few that are able to pay 200$ gas fee.
I think we are one of most promising projects, we also won last hackathon.
In my opinion, Synthetify is one of the most complex app that are going to be build on Solana, so there is zero competition in our space.
Question 14: For value capturing, what is the tokenomics of Synthetify , and how do you stimulate the users to hold your tokens in the long run? What are some application scenarios of your token?
Norbert Bodziony: I expect most of the tokens to be staked in Synthetify exchange to receive exchange fees and staking rewards. SNY token will also give users discount for trading.
The endgame is to give full control of platform to SNY holders, but there is currently no specific roadmap to that.
Question 15: What are the following plans of Synthetify? Will you establish any governance token? Any new product being launched? Will you cooperate with the projects for greater development?
Norbert Bodziony: Yep SNY token will be Utility/Governance token. We are exploring all ranges of products don’t want to commit to anything right now since Synthetify exchange is priority right now, but I like what SushiSwap is doing with vertical integration and I like this direction.
For sure, we will be connecting with other project to expand utility of both SNY and synthetic tokens.