SYNC CryptoBonds: The Distinct Non-Fungible Tokens Transforming the Crypto Economy
DeFi projects are currently taking the lead in the digital currency market as the total value of assets locked inches closer to $11 billion. Investors worldwide flock to actively participate in the new projects, especially due to the lucrative deals and brilliant capabilities the ecosystems hold.
However, individuals are accustomed to leveraging the regular fungible tokens, which hold similar values; and the fact that most assets are ERC-20 tokens. Investors can now shift their attention to SYNC Network, a new platform introducing CryptoBonds in the form of non-fungible tokens. CryptoBonds are exclusively going to serve both ERC-20 and ERC-721 tokens.
The Token Circulation Criteria on SYNC Network
SYNC Network contains its native token, (SYNC token), whereby the total number of this asset is approximately 616 million emitted in the initial release via the Fair Release Schedule. The system employs a strategic way of users creating the initial tokens each day for the first year.
According to SYNC’s Fair Release Schedule, users who contribute ETH to the daily ETH pool once every 24 hours the daily amount of SYNC tokens will be available for minting proportional to the ETH each donor contributed. Every 30 days for one year the tokens emission rate cuts in half. Considering the fluctuation rates of SYNC tokens, which are unknowable, the prices and possibly CryptoBond interest rates will continue to increase within the first 30 days.
This means that a lower supply of the asset consequently increases its prices. Furthermore, the halving procedure will take place 12 times, with the accumulative supply expected to just exceed 616 million coins after a year.
SYNC Network plans to release 10 million SYNC tokens per day at its initial launch, halving 12 times to a final daily amount of 4800 tokens. The amount will be split further to serve two parties. Users who make their ERC-20 contributions will be handed 5 million of the 10 million daily. The developers and teams behind the network will get the remaining 5 million SYNC tokens. Daily ETH contributed to the FRS will be used in conjunction with the SYNC tokens obtained for locking liquidity on Uniswap and creating long term CryptoBonds for the start up of this brand new secondary crypto market. An allotment of 5% each of the daily ETH will go to the 3 founders during the whole FRS activity.
CryptoBonds and its Merits
Unstaking has become a common phenomenon in the DeFi space, making it a huge challenge for both the investors and the platform. Individuals get on board the staking platform and build-up the token involved with the ecosystem, which ultimately increases the prices. In the end, what follows is a high unstaking level by users after securing their profits leading to the project’s downfall.
Bringing Sync Network into the picture allows everyone to receive profits from CryptoBond assets and liquify Uniswap protocol. CryptoBonds can be defined as an ERC-721 token, also known as a NFT or Non-Fungible Token that adds liquidity to Uniswap and eventually locking it with SYNC tokens. Furthermore, setting up a CryptoBond is not cumbersome, it only requires users to follow some few, easy steps.
Firstly, investors have to commit some funds to Uniswap to get liquidity provider tokens. LPTs represent the tokens received after a user adds liquidity to the trading pairs. The second and final step entails purchasing SYNC coins with USD via Uniswap or the Fair Release Schedule strategy. One important thing to note is that both the Uniswap liquidity and SYNC amounts in USD have to be equivalent. Venture capitalists can either hold or trade the CryptoBonds in any NFT platform later on after following the steps.
Once a user creates a CryptoBond, it can’t be modified or tampered with whatsoever. On top of that, the created CryptoBonds will appear on your digital wallet designed with unique identifiers that distinguishes it from other assets, along with the ability to print the digital document.
Users can also send their CryptoBonds to other wallet addresses at a small gas fee.
CryptoBonds interest rates are locked after creating one, rates vary depending on the bond period, the amount of a paired token, and the supply of SYNC. The interest rates heavily rely on the accumulative supply of SYNC.
Nonetheless, re-minting commences once the bond matures and burns upon creation. Every liquidity pair meant for CryptoBond creation contains different interest rates depending on their supply and demand.
Prices of assets evolving around the CryptoBonds do not change when executing trades on an alternative market. Further, utilizing the automated bond market maker caters to the immediate sale of the CryptoBonds.
CryptoBonds will surely propel the SYNC Network and give users the chance to interact with the most prominent DeFi protocol, Uniswap. CryptoBonds that are locked for longer periods will reap bigger interest rates.
Asides from the CryptoBond mechanism, SYNC Network also gives you unprecedented access to a global marketplace. Therefore, users can find any commodity or service they wish to get on a global scale.
In a bid to build the stability of SYNC tokens with their liquidity pools, the network ensures CryptoBonds accommodate 50% of the SYNC tokens.
Originally published at https://bitswage.com on November 6, 2020.