Stake 1ETH into a SYNC/ETH CryptoBond NFT

Voting ended about 4 years agoSucceeded

As Chads, we love residual income right? Let's talk about CryptoBonds and the opportunity the SYNC Network presents for us. First we need an understanding of both.

"A CryptoBond is fully tradable Financial NFT ERC-721 smart contract that locks liquidity on Uniswap. The Network is composed of two main smart contracts: the SYNC ERC-20 Contract, and the CryptoBond ERC-721 (NFT) contract. This is done by bonding (creating a CryptoBond) liquidity pair tokens with the corresponding dollar value of SYNC tokens at the current offered SYNC mining reward rate. They are called ‘bonds’ because they are minted by ‘bonding’ tokens representing the creators share of a decentralized liquidity pool (e.g., Uniswap ‘liquidity-tokens’) with an equally valued amount of SYNC until a specific pre-committed period of time (ranging from 90-days to 3-years) has lapsed (i.e., until it reaches ‘maturity’)." 

Liquidity Provider Tokens are used to represent a utilized financial service that promotes fair, liquid, and decentralized finance markets. Addressing financial support issues, LPT's are guaranteeing that these coins will not be removed from the pool until the CryptoBond is matured, thus, creating less selling pressure. 

"The SYNC Token is both inflationary, and deflationary by definition. This is the main driver of equilibrium to keep SYNC going up and down, both inflating and deflating the currency. Inflation is intended to provide the utility of bond-making and attracting new CryptoBond  creators with higher SYNC mining reward rates, and deflation is intended to prevent precipitous devaluation of SYNC. This behavior creates a balanced rhythmic SYNC economy."

Defined as:

YesterdaysRewardRate x TStoday/TSyesterday= TodaysRewardRate
			TS=SYNC Total Supply 

SYNC also incentivizes longer duration lock periods by making sure short term bonds don't outperform long term bonds.

Defined as:

t=term in years k=risk R=currently offered base rate p=liquidity pair bonus
		(1+ (R+p) + k(4t-1))^4t=Bond Reward Rate. 

"The risk k is a linear constant approximator intended to reflect the risk incurred by holding a CryptoBond. The more duration risk, the higher the reward rate. This calculation scales with time, ensuring that even under a compounding event of lower term bonds, higher term bonds will always perform marginally better. This constant we define as k = 0.0005 and it will never change in the smart contracts governing the CryptoBond system. In the traditional economic markets, there are additional, subjective changes that also affect interest rates, apart  from  the  numerical  calculations.  In  the  SYNC  network,  the  notion  of subjectivity, agendas, or world events will not ever affect reward rates."

The SYNC Network has a strong argument for both it's use-case and utility in DeFi L2. SYNC is currently solving liquidity issues in both Uniswap, and Sushiswap. SYNC will be forever functional as long as ETH is online, boasts a proof of liquidity flaw by locking liquidity value in exchanges to avoid pump and dumps, and offers SYNC Governance to approve Liquidity Pair Tokens. Each CryptoBond is one-of-a-kind and collectable. After creation they cannot be changed, altered, or canceled in anyway.

There are two types of CryptoBonds, Simple and Quarterly Returning CryptoBonds, and each CryptoBond can be minted to reach maturity between 90 days and 3 years. The following is calculated for a Simple 3 year rate as it gives the best rate returns, and chance for SYNC's price to rise.  
 
The this dip in the current market provides a great entry opportunity for the ETH/SYNC swap. SYNC from it's ATH in March 2021 of $0.01965, and currently consolidating in the $0.014-$0.015 range. The valuation of SYNC is expected to be a minimum of $0.0245 by maturity date. This means we can continue to profit off of this investment after the maturation of the CryptoBond. This investment opportunity also presents an extremely low risk because we can recoup our investment at a slight profit at any point by selling our CryptoBond NFT on any marketplace.

The investment plan would be as follows to invest 1ETH into a Simple SYNC/ETH CryptoBond:

Provide .5ETH worth of liquidity to Uniswap to receive LPT (UNI-V2) tokens.
Acquire .5ETH worth of SYNC on Uniswap. (Note: worth in USD of Uniswap liquidity and SYNC bonded must be equal).
Create (mint) a simple CryptoBond and wait out our maturity date. (We can get 100% of our gas fees refunded in #gas-station of their discord to make it an exact 1ETH investment)
Upon maturity of our CryptoBond, 90% of the total SYNC should be immediately sold to lock in our profits. The remaining 5% should be held as as asset in the treasury until we see fit.

Risk: Conservative Buy: IMMEDIATELY/When the pool is open. Duration: 3 years Current 3 Year Rate: 310.9% SYNC Mining Rewards Rate: 11.93% Current SYNC Price: $0.01432 USD Circulating SYNC Supply: 122,911,818 $SYNC Live Market Cap: $1,757,765 USD Total Liquidity Staked SYNC/ETH: $938,427 USD Bonded SYNC/ETH: $933,161.00 USD Bond Cap: $1,000,000USD. Currently 99% bonded. We're just in time.

Emergency Exit Plan: If we decide to allocate the funds elsewhere, we can sell the NFT on any marketplace at 1.25 ETH, and the buyer takes over the CryptoBond until maturity reaping the rewards. (I would advise against this, but it's there)

(https://app.syncbond.com) (https://pdfhost.io/v/eJxdO5.YU_SYNC_NETWORK_Whitepaper_v20.pdf) (https://docs.syncbond.com/sync-network-dao/cryptobonds-staking) (https://docs.syncbond.com/sync-network-dao/syncbond/building) (https://coinmarketcap.com/currencies/sync-network/) (https://digitalcoinprice.com/forecast/sync-network/2025)

*disclaimer, I minted a SYNC/ETH Bond to be able to simplify this investment proposal explanation.

Off-Chain Vote

For

231 88.5%

Against

19 7.3%

Abstain

11 4.2%

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Timeline

Mar 14, 2022Proposal created

Mar 14, 2022Proposal vote started

Mar 18, 2022Proposal vote ended

Oct 26, 2023Proposal updated

"A CryptoBond is fully tradable Financial NFT ERC-721 smart contract that locks liquidity on Uniswap. The Network is composed of two main smart contracts: the SYNC ERC-20 Contract, and the CryptoBond ERC-721 (NFT) contract. This is done by bonding (creating a CryptoBond) liquidity pair tokens with the corresponding dollar value of SYNC tokens at the current offered SYNC mining reward rate. They are called ‘bonds’ because they are minted by ‘bonding’ tokens representing the creators share of a decentralized liquidity pool (e.g., Uniswap ‘liquidity-tokens’) with an equally valued amount of SYNC until a specific pre-committed period of time (ranging from 90-days to 3-years) has lapsed (i.e., until it reaches ‘maturity’)." Liquidity Provider Tokens are used to represent a utilized financial service that promotes fair, liquid, and decentralized finance markets. Addressing financial support issues, LPT's are guaranteeing that these coins will not be removed from the pool until the CryptoBond is matured, thus, creating less selling pressure. "The SYNC Token is both inflationary, and deflationary by definition. This is the main driver of equilibrium to keep SYNC going up and down, both inflating and deflating the currency. Inflation is intended to provide the utility of bond-making and attracting new CryptoBond creators with higher SYNC mining reward rates, and deflation is intended to prevent precipitous devaluation of SYNC. This behavior creates a balanced rhythmic SYNC economy."

YesterdaysRewardRate x TStoday/TSyesterday= TodaysRewardRate TS=SYNC Total Supply SYNC also incentivizes longer duration lock periods by making sure short term bonds don't outperform long term bonds.

t=term in years k=risk R=currently offered base rate p=liquidity pair bonus (1+ (R+p) + k(4t-1))^4t=Bond Reward Rate. "The risk k is a linear constant approximator intended to reflect the risk incurred by holding a CryptoBond. The more duration risk, the higher the reward rate. This calculation scales with time, ensuring that even under a compounding event of lower term bonds, higher term bonds will always perform marginally better. This constant we define as k = 0.0005 and it will never change in the smart contracts governing the CryptoBond system. In the traditional economic markets, there are additional, subjective changes that also affect interest rates, apart from the numerical calculations. In the SYNC network, the notion of subjectivity, agendas, or world events will not ever affect reward rates." The SYNC Network has a strong argument for both it's use-case and utility in DeFi L2. SYNC is currently solving liquidity issues in both Uniswap, and Sushiswap. SYNC will be forever functional as long as ETH is online, boasts a proof of liquidity flaw by locking liquidity value in exchanges to avoid pump and dumps, and offers SYNC Governance to approve Liquidity Pair Tokens. Each CryptoBond is one-of-a-kind and collectable. After creation they cannot be changed, altered, or canceled in anyway. There are two types of CryptoBonds, Simple and Quarterly Returning CryptoBonds, and each CryptoBond can be minted to reach maturity between 90 days and 3 years. The following is calculated for a Simple 3 year rate as it gives the best rate returns, and chance for SYNC's price to rise. The this dip in the current market provides a great entry opportunity for the ETH/SYNC swap. SYNC from it's ATH in March 2021 of $0.01965, and currently consolidating in the $0.014-$0.015 range. The valuation of SYNC is expected to be a minimum of $0.0245 by maturity date. This means we can continue to profit off of this investment after the maturation of the CryptoBond. This investment opportunity also presents an extremely low risk because we can recoup our investment at a slight profit at any point by selling our CryptoBond NFT on any marketplace.