Choosing the idea for our project, we wanted to find something that will:
- Benefit the planet and humanity
- Be economically sustainable
- Be an exciting new idea
As you have probably guessed, Synergy is perfectly suited for each case. The project combines new technologies, a sustainable economic model, and a contribution to solving global problems.
When modeling Synergy, we were inspired by Synthetix, FRAX, and Overlay protocol architectures. Our protocol has an optimal balance of over-collateral and algorithmic backing. This will allow for maintaining the most accurate peg at the highest level of protocol reliability.
We managed to do this, and ultimately, created the world's best base model for synthetic assets.
What it does
Synthetic (tokenized) assets are tokens on the blockchain, the prices of which are tied to prices of assets in the real world.
For example, synthetic gold would replicate the price of gold in the real world. Synthetic assets cannot be exchanged 1:1 for their analogs in the real world, but they can be used for investment and speculation.
Until now, not a single DeFi protocol tried to specialize in resource tokenization. In the context of the current global turmoil, this direction is especially relevant.
High demand for resources is caused not only by their usage in production but speculation as well. Speculative interest plays a big role in price growth. Common folk suffer from high prices on gas and oil, and important industries suffer from shortages on metals and other materials. In addition, increased demand stimulates an increase in mining of resources, which has a destructive effect on the environment.
This problem can be partially solved if speculators and investors are allowed to buy not real resources, but their analogs in the blockchain. The purchase and sale of synthetic assets do not affect the price of resources in the real world. Such a scenario of events would be beneficial to everyone.
How we built it
The main task was to make the peg the most accurate at the highest level of reliability. After long research, we invented the final solution — compensation for the losses of the debt pool at the expense of insurance.
We wrote full-fledged and tested contracts and deployed them on Aurora Testnet. We created a slick UI for the Dapp. We made a presentation. In parallel with this, we came up with the idea to release an NFT collection, since it fits well into the idea of the project.
For getting prices of resources, we used mock handmade datafeeds, but for mainnet deployment we will use integrated Aurora oracles.
Challenges we ran into
It may seem that it was easy. No. It was difficult.
Firstly, there was a risk that we would not be able to come up with anything new or working. And we didn't want to reuse existing architectures anymore. We are lucky that we have a person on our team who has a deep understanding of DeFi protocol architectures.
Secondly, due to IRL problems, one of the solidity developers could not devote much time to working on the project, so almost all the work on writing contracts fell on the shoulders of one person. It was really not easy to write such an architecturally complex protocol alone.
Thirdly, our front-end developer got sick. It was unexpected, it was at the moment when the development of the contracts was completed and it was necessary to do the front, that is, at the most inopportune moment. It seemed that nothing could be worse than this, we were ready to give up. Anna decided we couldn't waste time and began to learn React. It helped a lot, and eventually we managed to finish the project.
Despite all the difficulties, we are glad to present our protocol to you, and we hope you will like it as much as we enjoyed making it.
Accomplishments that we're proud of
First of all, we worked together as a team. This is the most important thing for us. Projects will change, but the team can stay together for life. We have learned to replace each other and adapt to rapidly changing circumstances. Some of us had to learn completely new things, and all this in order for the project to succeed. It is important to say that despite all the difficulties, we managed to finish the protocol on time, which means a lot to us. We want to continue working on the protocol, and we believe that the main achievements are still ahead.
What we learned
We have mastered skills in new development tools, researched a lot about DeFi models and economics, and even learned how to make videos. But most importantly, we have become stronger as a team.
What's next for Synergy
We will continue developing the project. We will iterate on the architecture, tokenomics, and positioning. We will add more contracts to the architecture, and we will tidy up the website and the application. If necessary, we will look for investments for further development of the project.
Thank you for reading to the end, good luck!