Background

With the successful deployment of the $5M loan to Synapse Labs in March 2024, the Synapse RFQ system has demonstrated significant improvements in bridging efficiency, cost reduction, and emissions optimization. This proposal suggest a renewal of the initial loan that helped to fuel this progress.

Proposal

This proposal suggests renewing the $5M loan agreement with Synapse Labs for an additional year, under the same terms. The renewed deal would maintain the current structure of $1.5M ETH and $3.5M USDC. Synapse Labs would pay the Synapse DAO $235,954.75 for the Year 1 loan.

Reference proposal: https://forum.synapseprotocol.com/d/1542-5m-protocol-owned-liquidity-rfq-relayer

Implementation Details

The renewed loan agreement would maintain:

• Principal Amount: $5M ($1.5M ETH + $3.5M USDC)
• Interest Rate: 4.22% [New AFR rate for March 2025]
• Term: 12 months
• Current default and liability terms

Upon execution, Synapse Labs has 2 months from the proposal passing to payback the interest from the last loan period to the Synapse DAO, as per the agreement.