SyncBank is a simple yet outstanding lending protocol, built on the zkSync era scaling solution for Ethereum Layer 2. Our non-custodial lending platform gives users full control over their funds and offers competitive interest rates through a decentralized market that eliminates intermediaries.
SyncBank's tokenomics are based on $SCB stake and offer several benefits to users.
Yield Boosting: Boosts users' APR based on their $SCB token stake
Revenue Sharing: Distribute platform fees to users weekly based on their stake
Automatic $SCB Buyback and Burn systems: Buys back $SCB tokens when users claim platform fees share, with the majority of the protocol's revenue going to burning $SCB tokens
SyncBank's sustainability on the SCB token will enable the long-term growth of the platform and bring great success to its users.
Lending:
Lending & Borrowing on SyncBank
SyncBank's lending system is a player-to-protocol model based on over-collateralization. Users can freely supply assets to SyncBank, borrow funds, and receive $SCB tokens as rewards for all their actions.
By providing liquidity to SyncBank's supply market, users receive sTokens that represent their proportional share of that loan pool. Over time, their value increases due to accumulated interest. Upon closing the loan, the user returns these tokens and receives the increased value back.
Our lending system operates on a 100% code-based environment, removing intermediaries, and automatically adjusting borrowing and lending rates based on pre-defined factors. For instance, if the capital utilization rate in the pool is high, the interest rate will increase, prompting borrowers to repay their debts. This ensures that liquidity is always maintained appropriately, providing users with safer usability.
Liquidation:
If the value of the collateral is less than the amount borrowed by the borrower, the borrower's borrowing position is liquidated. The borrow limit determines the risk level, and liquidation occurs when this proportion exceeds the liquidation threshold
Parameters:
All factors may change from time to time depending on DAO/circumstances.
https://docs.syncbank.xyz/protocol/parameters
Locker:
https://docs.syncbank.xyz/protocol/locker
Automatic $SCB Buyback:
SyncBank is a lending protocol that earns its main revenue from the interest on loans paid by borrowers. Unlike other projects, SyncBank is designed to adjust the reserve factor (protocol allocation of revenue streams from borrowers) and distribute them to SyncBank users.
Borrower's interest fees
Liquidation penalty fees
Fees for claiming platform revenue share
Currently, SyncBank has a reserve factor of 80%, which means that if the protocol earns $1000 in interest, $800 of it goes to the protocol and $200 is rewarded to liquidity providers. However, 80% of that $800, i.e. $640, is paid out weekly to $SCB stakers. And when $SCB stakers claim their platform revenue share (e.g., ETH, USDC, etc.), they can only claim it in $SCB with a 5% fee.
This causes strong buying pressure on the $SCB token. Because when a user claims a share of the platform's revenue, $SCB tokens are automatically purchased with assets like ETH or USDC and distributed to the user.
And looking at other major lending platforms, it's estimated that when SyncBank reaches a market size of 10M, that number will be over $10,000 per week. In addition to that, the majority of the revenue accrued to SyncBank will be used to buy back and burn $SCB tokens.
link
Website: https://syncbank.xyz/
Twitter: https://twitter.com/SyncBankxyz