The Road to DeFi Restructuring: From Prisoner's Dilemma to Win-Win Model

In the last bull market, DeFi was widely regarded as one of the most revolutionary innovations in blockchain technology. However, great ideas often need to overcome numerous obstacles. Due to immature technology or structural flaws in economic models, many projects ultimately fell into a vicious cycle of decline. In the current environment flooded with Meme and inscription tokens, how can DeFi regain its former glory? Syncus may offer us a potential solution.

Introduction to Syncus DAO

Syncus DAO is a decentralized currency reserve protocol deployed on the zkSync Era chain. It is dedicated to developing and thriving DeFi applications within the zkSync ecosystem and providing liquidity markets for SYNC holders. The goal of Syncus is to become the core of the zkSync DeFi ecosystem, a truly decentralized "bank" that offers users a full range of financial services, including lending, collateral, stablecoins, interest accounts, mutual funds, brokerage, and exchanges.

zkSync Era, as an Ethereum Layer 2 scaling solution, plays a key role in the development of the Ethereum ecosystem with its efficiency, low cost, and strong security features. This provides an ideal high-performance platform for DeFi projects, and Syncus has emerged in such a context.

Core Concept: Reshaping Game Theory to Solve the prisoner's dilemma

The core concept of Syncus is to redefine the application of game theory in the field of Decentralized Finance. It is dedicated to breaking the nature of zero-sum games in other conventional protocols by designing a mechanism to surpass the prisoner's dilemma, thereby creating an ecosystem from which all participants can benefit.

OlympusDAO's ve(3,3) strategy and its flaws

OlympusDAO was once a groundbreaking project in the DeFi space, aiming to create a decentralized reserve currency protocol using its native token OHM. Through the innovative ve(3,3) model, OlympusDAO implemented rewards for positive behaviors beneficial to the collective and addressed, to some extent, the issue of token holder rights being diluted. However, this strategy has an inherent flaw in its assumptions, namely that staking requires binding, which does not fully align with reality. In practice, there is a discrepancy between bond purchasing behavior in the market and the expected behaviors of participants.

Optimization of Syncus for the ve(3,3) model

The design philosophy of Syncus is to surpass the traditional prisoner's dilemma by creating a mechanism where the actions of each participant promote the overall interests of the ecosystem. Even in situations where there is potential competition or opposition among participants, the entire system can still achieve a win-win outcome. The strategies employed by Syncus ensure that even in seemingly disadvantageous behaviors for the system, the DAO and its long-term stakeholders can still benefit. This mechanism is akin to a decentralized casino, where the DAO and long-term participants always profit from the system.

Game theory model of both parties and the elasticity of SYNC

In the bilateral game model of Syncus, any sale of SYNC will result in a loss for the seller, but stakeholders benefit, and this dynamic ensures the continuous flow of value for the DAO. At the same time, each transaction generates benefits for the DAO, as it can profit from a certain percentage of tax extracted from each transaction, even if the token price remains unchanged. This mechanism attracts more participants to join, forming a self-sustaining ecological cycle.

Even if the activity of SYNC weakens, the remaining APY distribution will rekindle people's interest, thereby promoting the recovery cycle. This model is fundamentally different from typical crypto Ponzi schemes or meme coins.

SYNC Token Design

The tokenomics of Syncus is a key component of its mechanism design. SYNC is Syncus's governance token, with a total supply of 4,186,731,698. As of March 18, the price of the SYNC token is 0.03071, with a total market capitalization of approximately 130 million USD. These features ensure that the interests of token holders are closely aligned with the long-term success of the entire ecosystem. From token issuance and distribution to its application in governance, Syncus aims to ensure a transparent and fair economic model, in which the tokenomics evolves in sync with the development stages of the Decentralized Finance platform.

Innovative Strategy Optimization Measures of Syncus

adaptive tax strategies

Syncus has implemented a flexible tax system that dynamically adjusts for sales and staking transactions. During periods of significant price increases, the protocol will temporarily raise the tax fees on sale and staking transactions to reduce speculative trading and ensure the stability of the protocol. During periods of market stability, the taxes will be re-evaluated and correspondingly reduced. This adjustment is also influenced by the current staking APY, ensuring that the tax policy remains fair and proportional to the earnings received by stakers.

Treasury Mechanism

more demand

Goals and Vision

Syncus positions the measure of success on the benefits it brings to all stakeholders, creating maximum value for long-term holders of SYNC, rather than just the value of the token. This strategy ensures that participants can continuously receive returns and profits regardless of market price fluctuations, promoting a success perspective that values sustainability.

Syncus's short-term goal is to increase market share and create value for holders, while the long-term goal is to become a decentralized protocol backed by a treasury. Once a significant market capitalization is achieved, Syncus plans to invest in the zkSync ecosystem and build its own product ecosystem, aiming to create a truly auto-generating yield stablecoin.

Summary

Syncus represents the arrival of a new era in Decentralized Finance. It draws lessons from past experiences and moves towards a more stable and sustainable future. By applying game theory, Syncus transcends the traditional prisoner's dilemma model, proposing a model that is more beneficial to the DAO itself and its long-term stakeholders. It encourages individuals to make positive actions and ultimately benefit the collective by implementing transaction taxation and treasury mechanisms, avoiding falling into a vicious cycle of decline.

As more and more innovative Decentralized Finance projects continue to emerge, we can expect the market's confidence in the DeFi sector to be rekindled, allowing it to stand out again in this bull market and lead the trend.