As the growing world of decentralized finance (DeFi) continues to challenge traditional finance, a cross-chain ecosystem wants to reduce the barriers to entry for the average retail investor.
Synapse Network describes itself as a 360-degree solution that provides the decentralized world with an investment technology ecosystem.
According to Synapse, there are a number of problems that plague the early adopters of DeFi and blockchain today. One of them is startups that lack the expertise to navigate the complexity of launching their projects in the space.
Meanwhile, potential users cannot always connect directly with the project for private and public rounds.
This inability to conduct due diligence remains a major barrier to accessing capital. Often, it can be the reason these early projects fail to move from the “idea” phase to the “launch” phase.
Synapse aims to provide an opportunity “of alternative investment to retail investors” by removing these barriers to entry. According to the project, the way of doing this is by creating a cross-chain launchpad with a tier system.
Creating a fair launchpad
Synapse wants to build infrastructure that combines decentralization and democratization.
“Just as the internet provided the architecture to democratize numerous spheres of life, it is now time to use the internet to democratize investing and civilize the fundraising process,” said the project in its whitepaper.
At its core, the Synapse Network is a cross-chain launchpad that provides a virtual trading floor to everyone regardless of the size of their investment. The platform uses a tier system to enable low cap investors to participate by allowing guaranteed or bonus allocation on the basis of tickets, while the remaining amount is allocated based on USD deposited.
Using hundreds of simulations, Synapse worked out a mathematical formula that will even out the playing field between whales and smaller investors. The largest whales will have to pay ten times as much for the same allocation as a small investor.
Even in traditional markets, however, early-stage investors often play a bigger role to startups than just providing capital. Realizing this, Synapse created an “Investment Syndicate” – a network of VC funds, business angels, tech partners, private investors and other blockchain projects. This network of executives will provide those in Synapse’s Incubator and Accelerator with a range of services from product development, technological know-how and due diligence.
Building a cross-chain ecosystem
Over time, Synapse plans to build an entire ecosystem that facilitates cross-chain interoperability. The project is expected to introduce a cross-chain DEX that will allow users to trade multiple cryptocurrencies across different blockchain networks.
Synapse’s DEX will also list projects from their incubator, providing them with another layer of exposure.
Apart from the DEX, the project also plans to launch a DeFi platform that will facilitate staking SNP tokens and earning lucrative interest. This will also serve as the space where users have exclusive pre-access to products offered by projects incubated under Synapse Network, helping them gain first market exposure and build a community.
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