DeFi

Synapse Starts Voting For Proposal Regarding Deployment On Canto

Cross-chain protocol Synapse’s community has started a vote for a proposal suggesting deploying Synapse on Layer-1 blockchain Canto. If the proposal gets passed, Synapse will launch a new liquidity pool on Canto to enable users to bridge assets between Canto, Arbitrum, Optimism, Avalanche, and BNB Chain.

This proposal seeks to build Synapse atop Canto, a permissionless general-purpose blockchain designed using Tendermint consensus and EVM compatibility, allowing users to smoothly move stablecoins between Canto and the many linked EVM chains. The protocol can facilitate this link by introducing a new liquidity pool on Canto composed of nUSD and NOTE, the Canto ecosystem’s native stablecoin.

Canto recently launched a liquidity mining program to support the network’s and the ecosystem’s native stablecoin, NOTE. Over $100 million in TVL has been bridged to the chain in the first 30 days of the program to buy CANTO, borrow NOTE through the loan market, and offer liquidity in Canto’s native DEX.

Currently, all bridging is done using Gravity Bridge. Gravity only allows assets from Ethereum and Cosmos Hub to be bridged into Canto, leaving out a vast number of assets from other blockchains.

Synapse can connect the Canto ecosystem to the remainder of the multi-chain ecosystem, enabling users and assets that exist on chains like Arbitrum, Optimism, Avalanche, BNB Chain, and more.

Increased users and assets will help accelerate Canto’s growth plans, introducing a unique user base to the new blockchain ecosystem. In tandem, increased volume through grows and expands Synapse to a new suite of users (Canto users). According to the proposal:

“As this Synapse bridge would be the only bridge connecting Canto beyond the Ethereum mainnet, the new integration is expected to bring over a great deal of bridge volume, and therefore protocol revenues. Similarly, the Canto ecosystem is in its infant stage. Assuming the network grows, Synapse will be extremely well positioned to help encourage this growth. Canto would also represent the first Cosmos-based chain integrated by Synapse.”

For more detailed information you can see here.

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.