Synths protocol docs

Overview

Synths is a synthetic liquidity protocol for crypto projects. When a project's token is listed on Synths, holders can stake that token into a non-custodial vault. The protocol uses this staked liquidity to power a synthetic market for that asset.

Traders don't need to own or borrow the real token—they trade a synthetic representation instead. Trading fees from this synthetic market flow back to stakers as yield.

How Synths works

At a high level, Synths connects stakers, projects, and traders in a single flywheel:

1. A project is approved and listed as a supported asset.
2. Holders stake the token into the Synths vault for that market.
3. The protocol mints synthetic liquidity units for that asset (e.g. sBRETT, sAERO).
4. Traders use these synthetic units to open long/short positions.
5. Every trade pays fees; fees are streamed back to stakers as yield.

Internally, Synths uses a delta-neutral design: the protocol aims not to take directional price exposure, but instead collects fees from trading activity while managing inventory and risk.

Staking

Staking on Synths turns you into a liquidity backer for synthetic markets. When you stake a supported asset, you are helping underwrite traders' ability to take synthetic exposure to that asset.

What you earn

• A share of all trading fees generated in that market
• Yield that scales with volume, not inflation
• Exposure to the underlying asset's price (unless hedged externally)

Basic staking flow

1. Connect your wallet on the Synths app.
2. Select a supported market and approve the token.
3. Stake your desired amount into the vault.
4. Watch your fee share accrue over time.
5. Claim fees and unstake when you're done.

Synthetic trading

Synthetic trading is the engine that powers yield on Synths. Instead of trading the real token, traders interact with synthetic exposure backed by staked assets.

Why synthetic trading?

• Traders can take large positions without sourcing spot liquidity.
• Markets can have deep, virtual liquidity even if the token isn't heavily traded on DEXes.
• The protocol can fine-tune fees, spreads, and risk parameters per market.

How synthetic trading fuels yield

Every trade on Synths generates fees:

• Open/close fees
• Funding payments between long/short sides
• Liquidation penalties

These fees are aggregated and distributed to stakers in that market. The result:

From a trader's perspective, Synths looks and feels like a high-liquidity, perp-style synthetic venue. From a staker's perspective, it is a way to earn fee-backed yield by supporting those markets.

Project listings

Synths lists a curated set of crypto assets. When your token is listed:

• Holders can stake it to back synthetic markets and earn fees.
• Traders can gain synthetic exposure to your asset.
• Your token becomes productive liquidity, not passive supply.

What we look for

• Real users and evidence of product–market fit
• On-chain liquidity and sustainable token design
• Security posture (audits, formal reviews, transparency)
• Clear communication channels and responsive team

How to apply

If you'd like to list your market on Synths, you can submit an application directly via the app:

Apply to list your market →

The application collects high-level information about your project, token, current liquidity, and how you intend to promote and support a Synths-powered market.

Security & FAQ

Synths is designed with security and risk management at the core. Smart contracts are intended to be battle-tested and progressively hardened over time.

Security principles

• Non-custodial vaults – users stay in control of funds.
• Isolated markets – risk is compartmentalised per asset where possible.
• Conservative defaults on fees, leverage, and parameters.

Frequently asked questions