Syntern
Welcome to the third episode of SynStation 101, your ultimate guide to SynStation, the cutting-edge prediction market launching on Soneium. SynStation redefines the prediction market experience by addressing the limitations of existing platforms. In this episode, we’ll explore how SynStation’s Autopilot Staking not only maximizes user yields on Soneium but also serves as the backbone of our prediction market ecosystem.
You might be wondering: isn’t SynStation a prediction market? Why does it involve staking? Don’t worry—this guide will clarify everything.
Liquidity is the lifeblood of any exchange or project, including prediction markets. However, securing initial liquidity is a major challenge. Users are more inclined to participate in well-established platforms, creating a classic "chicken-and-egg" dilemma. While many projects attempt to solve this issue by offering governance tokens as incentives, this approach has rarely succeeded.
What users truly desire is competitive and sustainable yields. Recognizing this, we set out to develop a solution that provides high yields in a non-ponzi-like manner while gathering the liquidity necessary for a fully functioning prediction market.
Autopilot Staking is our innovative solution to the cold-start problem. While our core product is a prediction market, SynStation will also operate as Soneium's most efficient yield aggregator. Users simply deposit assets into the Autopilot Staking service and let the system handle the rest. Assets are allocated to whitelisted protocols via governance-approved strategies that ensure principal protection. All yield generated by these protocols is returned to users without fees.
For example, depositing $WETH into SynStation allows it to be automatically utilized across multiple decentralized finance (DeFi) protocols. Your $WETH might provide liquidity in a stable-swap DEX, earn interest in a lending protocol, collecting fees and rewards including protocol tokens and points. Additionally, a portion of these assets is collateralized to mint $GM, our own stablecoin which will be the base currency of the prediction market, and convert it into $stGM to earn yield.
In short, staking at SynStation simplifies yield generation. Your deposit earns highest rewards across diverse opportunities—from protocol airdrops to staking points—without requiring manual management or splitting funds across multiple platforms.
As mentioned Earlier, $GM (Good Money) is SynStation’s proprietary stablecoin and the base currency of our prediction market. Why create our own stablecoin? The answer lies in utilizing diverse deposited assets while reducing external dependencies, ensuring system stability.
The majority of $GM will be minted by collateralizing staked assets, although individuals will be able to mint them too. Collateralization ratios are conservatively set to avoid liquidation risks, with adjustments made during periods of market volatility. Once minted, $GM serves as the backbone of our prediction market, enabling yield generation through multiple channels.
For instance, $GM holders can convert it into $stGM, a yield-bearing stablecoin. Similarly how Autopilot utilizes user assets to earn yield, $stGM earns yield from various sources: swap fees from LP position at prediction market, $SYN emissions, interest from debt positions, and arbitrage profits from AMO vault, which maintains GM’s peg. These mechanisms provide robust incentives while sustaining the liquidity required for prediction market operations and wider adoption.
Our ambition extends beyond building just another prediction market; we aim to create THE prediction market—a 0 to 1 moment for the industry. Achieving this requires a carefully crafted ecosystem of interdependent components. While the structure may appear complex at first, it is this combination of pillars that ensures a robust and effective system.
The yield aggregator ensures abundant liquidity for every prediction market, enabling stakers to earn optimal yields while traders can seamlessly operate without relying on external protocols. At the same time, stGM holders benefit from yields that surpass those of other yield-bearing stablecoins, offering unmatched profitability.
This structure also catalyzes a secondary effect: the Flywheel Effect. We anticipate that $stGM’s yields will outperform other major yield-bearing stablecoins, such as $sDAI. As our prediction market gains momentum, demand for $GM will increase, strengthening its peg and further enhancing $stGM’s profitability. Higher yields will attract more users to Autopilot Staking, driving additional GM issuance and liquidity. This reduces slippage, boosts trading volume, and fosters even greater engagement in our prediction market, creating a self-reinforcing positive feedback loop—a Flywheel Effect.
This Ouroboros-like system supports a sustainable protocol economy, ensuring long-term growth and stability for SynStation. By seamlessly integrating these elements, we are paving the way to establish one of the largest and most influential prediction markets in the world, fulfilling our ultimate vision.
Excited to get started? Join our early supporters and be rewarded handsomely! Over $1M in assets has already been staked. Staking is simple: visit https://staking.synstation.org/, deposit your assets, and share your referral code to maximize rewards. Early adopters are crucial to our success, and we’re committed to recognizing your contributions with significant benefits. Don’t miss out—stake now!
The article presents a compelling overview of SynStation’s innovative approach to overcoming the liquidity challenges of prediction markets. By integrating Autopilot Staking and introducing $GM as a native stablecoin, the team has crafted a self-reinforcing ecosystem with the potential to disrupt traditional models. The "Flywheel Effect" strategy, leveraging $stGM’s superior yields, is particularly impressive as it aims to create a sustainable loop of growth and engagement. However, the reliance on governance-approved strategies and maintaining a stable $GM peg raises questions about how the system might respond to extreme market volatility or unforeseen governance hurdles. It will be interesting to see how SynStation ensures transparency and long-term stability in its operations. Overall, it’s an ambitious vision, and if executed effectively, SynStation could redefine prediction markets and yield aggregation in DeFi.