SynLev

SynLev is a group of synthetic leveraged asset pairs created and tokenized on Ethereum based on price data from Chainlink oracles. SynLev assets function similarly to leveraged ETFs such as "Daily S&P 500 Bull 3X Shares". These stocks react to a 3x (with or against) price move, if the S&P 500 rises 1%, the stock rises 3%. SynLev resources perform the same function, but with some differences.

SynLev assets are trustless and only use price data from decentralized oracles. We currently only build public Chainlink oracles. And intend to deploy 3X tokens for each Chainlink price flow.

Every trader knows the advantages and disadvantages of leveraged trading. While it's great to increase potential profits, the risk of getting "rect" is always present. Crypto traders have failed to take advantage of the benefits that traditional traders had with leveraged ETFs. The goal of SynLev is to offer the same benefits in the world of cryptocurrencies by allowing traders and investors to participate in leveraged trading with zero risk of liquidation. Ending the Anguish of Receiving a Binance “Margin Call Notification” Email Usually Followed by a “Liquidation Call Notification” Email.

This is achieved in several ways. Pricing is not continuous. Price updates are synchronized with Chainlink price updates. What updates about the "heartbeat" of the oracle and when the price changes by a threshold percentage. Leverage is not static, a 3X asset will actually run in a range of 1.5X to 4.5X depending on how the asset pair is balanced.

All SynLev assets are minted for ETH at the current price of the synthetic token. Hence, there is no initial supply and the tokens retain 100% liquidity. Similarly, when tokens are sold, they are burned. All tokens are bought and sold directly from the vault smart contract and carry a 0.4% fee. All subsequent commissions are distributed among SYN token holders who stake their tokens.

The SYN token acts like shares of the SynLev ecosystem, earning staking rewards from fees generated by users buying and selling SynLev assets. It is important to note that SYN is NOT a control token. All management of the SynLev project is centralized. The SYN rate will be enabled shortly after the first launch of SynLev assets. Part of SYN tokens will be transferred to LINK holders. The distribution request will be made manually.

The current implementation of synthetic leverage comes with several risks. First of all, the risk that the equity of the asset in the pair will fall to 0. The result will be zero effective leverage for the opposite asset and zero price reactivity. This would result in large buy bonuses encouraging the minting of the asset with zero capital. Even in the unlikely event of a complete cessation of the functioning of the underlying asset, 100% Ethereum sent to a pair of tokens can be returned.

Even though SynLev is built on decentralized oracles, many aspects of SynLev are highly centralized. This is a deliberate design choice to avoid the pitfalls of DAOs (Decentralized Autonomous Organizations). Making upgrades easy, allocating funds for advertising and listing, and intentionally guiding the SynLev project. Asset controller contracts have anti-abuse measures built in, such as a hard cap on sales commissions, a 72-hour delay for contract renewal, etc. Asset links for Oracle contracts are currently being replaced, eventually they will be permanently locked. when Chainlink price proxies will be implemented.

SynLev's goal is to provide leveraged decentralized assets that are censorship resistant and do not require any form of KYC. The development of financial products similar to those of traditional markets is vital to the health and success of cryptocurrency markets. SynLev's mission is to provide assets that perform just like leveraged ETFs. Starting with crypto-fiat trading pairs and moving on to stocks, indices and commodities. The only limit to the growth of Synlev's assets is the availability of reliable decentralized oracles.