Published 10 Jan, 2023
Synergy is a decentralized protocol for trading synthetic assets. It recently won the Chainlink Fall 2022 Hackathon's Top Quality Award and a Truflation Award as one of the top 3 projects which used Truflation data.
The inspiration for Synergy came from the desire to create something that would benefit humanity and the planet, be economically sustainable, and be a novel idea.
One of the unique features of Synergy is its focus on resource tokenization. The high demand for resources, driven in part by speculation, can lead to shortages and environmental damage. By allowing investors to trade synthetic assets instead of real resources, Synergy aims to provide a more sustainable solution while still allowing space for speculation.
The team's motto: "Burn synths, not nature."
The team was inspired by existing protocols like Synthetix, FRAX, and Overlay, and set out to create the world's best base model for synthetic assets.
To create Synergy, they developed and tested smart contracts and created a user interface for trading synths like natural gas and gold. To get pricing data for their assets, the team used Chainlink oracles, including the Truflation indices such as housing prices.
On the technical level, the team put extra time in developing a modern architecture, which would offer a more precise peg and stability of asset prices. Their solution was to compensate for the losses of the debt pool at the expense of insurance.
They also created an NFT collection representing real-world assets to help users better visualize the project's potencial.
Truflation is an economic data aggregator serving independent, unbiased, real-time data on-chain and off-chain. It validates, harmonizes, and calculates outputs using open-source algorithms. Truflation’s oracles are a source of independent censorship-resistant data on-chain and an engine that powers inflation-protected web3 applications and blockchain economies.
Synergy Devpost entry
Synergy Platform (demo)
Written by Natalia Nowakowska