🚁Optimistic Finality

Protocol Optimization

SYNO V1 Structure:

• Protocol exclusively uses the Wormhole Token Bridge to send messages and values from and to the Hub (Arbitrum).

• Due to a lack of configurability of the Token Bridge finality assumptions, transactions can only be settled with full-finality substantially crippling UX.

• The current codebase is limited by the Arbitrum contract size limits and requires a change in favor of a modular structure to allow for a scalable design.

SYNO V2 Structure:

• After a thorough audit, deploy changes to the core contract logic to allow for Spoke asset-custody and use of instant finality messages avoiding the requirement of always using the Wormhole token bridge. This change gives users the option to have sub 1-minute transaction finality for any action on any chain. Optimistic Finality is expected to be a large revenue driver, with a proposed 0.40% fee on the notional asset value.

• After the thorough audit, deploy changes the core contracts to a scalable and modular design that allows for faster feature upgrades and long term scalability.

With careful research on block re-org risk alongside our partners at Gauntlet we have concluded the long term safety and sustainability of utilizing instant finality for message transfer within Synonym at a fee of at least 0.4%. To add some color to protocol revenue revenue assumptions we have created a sensitivity analysis. Currently the average daily volume on Synonym is $200,000-300,000 with the major user experience bottleneck of full finality and only supporting EVM chains:

Optimistic Finality Deposits & Withdraws Flow