A new way to use your capital cross chain?

@Sakura please summarize this article, thanks uwu.

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Reading https://wajahatmughal.substack.com/p/a-new-way-to-use-your-capital-cross

TLDR :cherry_blossom:

Synonym Finance is a new cross-chain credit layer that allows users to provide collateral on one chain and borrow assets on another, solving the fragmentation issue in DeFi.

Key Points :dizzy:

  • Synonym uses Wormhole’s cross-chain messaging system to enable cross-chain borrowing and lending
  • Users can supply assets like ETH, wBTC, and stablecoins on one chain and borrow other assets on another chain
  • Synonym currently supports Ethereum, Arbitrum, Optimism, Base, and the new Scroll L2
  • Users can earn rewards like $SYNO, $W, $ARB, and $SCROLL tokens by providing liquidity and borrowing

In-depth Summary :memo:

The article discusses a new DeFi platform called Synonym Finance that aims to solve the issue of fragmentation across different blockchain ecosystems. Traditionally, moving funds between chains requires swapping assets and bridging, which can be time-consuming and costly.

Synonym uses Wormhole’s cross-chain messaging system to enable users to provide collateral on one chain and borrow assets on another. The platform has a hub-and-spoke model, with Arbitrum as the hub chain where all the messages and accounts are stored. Users can interact with various EVM-compatible chains like Ethereum, Optimism, and the newly launched Scroll.

By using Synonym, users can avoid the hassle of selling assets to bridge them to another chain. They can also earn rewards in the form of $SYNO, $W, $ARB, and $SCROLL tokens for providing liquidity and borrowing. Additionally, users can leverage their positions to increase their rewards.

ELI5 :child:

Synonym is a new way to move your crypto between different blockchains without having to sell it first. You can put your crypto as collateral on one chain, and then borrow other crypto on a different chain. This makes it easier to use your crypto in different places without having to go through a lot of steps. Synonym also gives you rewards for using their platform, which is pretty cool!

Writer’s Main Point :thought_balloon:

The main point of the article is to introduce Synonym Finance as a new and innovative solution to the problem of fragmentation in the DeFi ecosystem. By enabling cross-chain borrowing and lending, Synonym aims to provide users with more flexibility and opportunities to earn rewards across multiple blockchain networks.

Relevant Links :link: