sSynth Utility

sSynth is the native utility token of the Synth protocol on Sonic Chain. It serves as the backbone of the ecosystem, facilitating governance, liquidity incentives, collateralization, and staking rewards.

By holding, staking, or providing liquidity with sSynth, users can earn rewards, participate in governance, and mint synthetic assets while contributing to the stability and growth of Synth.

sSynth Utility & Use Cases

🗳 Governance

• Vote on protocol decisions – sSynth holders can propose and vote on upgrades, collateral ratio changes, and new integrations within the Synth ecosystem.

• Protocol revenue distribution – Future governance proposals may include mechanisms for distributing protocol fees to active participants.

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🔒 Collateralization for Synthetic Assets

• sSynth is required to mint synthetic assets (xsS) on Sonic Chain.

• Backs alongside the Sonic (S) token, ensuring synthetic asset stability.

• Collateral ratio starts at 90% and adjusts dynamically based on governance and peg value.

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💰 Staking for Rewards

• Stake sSynth to earn Sonic (S) tokens from protocol fees.

• No lockup required – Withdraw at any time.

• Long-term staking enhances ecosystem stability while rewarding participants.

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🌊 Liquidity Mining Incentives

• Provide liquidity in key sSynth pools to earn additional rewards.

• High-priority liquidity pools:

  • sSynth/S (Sonic) LP

  • xsS/S (Sonic) LP

  • Incentivized liquidity ensures deep trading markets and helps maintain peg stability.

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