Thread by @redphonecrypto

One 🤡's ELI5 on $SYN

Explain it like I'm 5, ser

Wtf is @synlev $SYN and why are you so bullish on it?

Synlev = Uniswap with leverage

More specifically, it's bringing leveraged ETFs or ETNs to crypto

More 👇

Hmmm

Ok

Tongue pressed to the back of my teeth

I am mildly titillated, but I don't know what a leveraged ETF or ETN is because I am not in the top 10% of America that owns 92% of the public stocks

OK

ETF = exchange-traded fund
ETN = exchange-traded note

2/x

Essentially, an ETF or ETN is a tradeable stock

Each share = a market

i.e, there are ETF shares that bet on the price of oil ($GUSH)

or the price of gold mining stocks ($JNUG)

They can get more exotic, too

$UVXY for ex. tracks the volatility of the stock market

3/x

The king of them all = ProShares UltraPro QQQ (stock ticker $TQQQ)

$TQQQ aims to return three times (3x) the return of the Nasdaq-100 Index for a single day, not for any other period

So, if the NASDAQ goes up 2% on a given day, your share of $TQQQ should go up 6%

4/x

If the NASDAQ goes down 2% on a given day, your share $TQQQ should crater 6%

Simply put, they are ways to bet on a market by simply buying a share of stock

$SYN = the crypto version of a leveraged ETF/ETN issuer

5/x

$SYN just launched on Wednesday

Their first product = 3x $ETH tokens

What?

You can buy Synlev's 3x ETH tokens just like buying any other tokens (or just like you'd buy a share of an ETF in your brokerage account)

6/x

One of the tokens is bullish $ETH ($3xBULLETH)

One of the tokens is bearish $ETH ($3xBEARETH)

If $ETH goes up 2%, $3xBULLETH should go up 6%

If $ETH goes down 2%, $3xBULLETH should go down 6%

7/x

The BEAR tokens behave the opposite of that:

If $ETH goes up 2%, $3xBEARETH should go down 6%

If $ETH goes down 2%, $3xBEARETH should go up 6%

This dude shows you exactly how to buy and sell bull and bear $ETH tokens:

https://twitter.com/crypto_gav/status/1329113252257804288?s=20

8/x

Keep in mind these tokens are NOT designed to be long-term holds

They suffer from price decay just like leveraged ETFs, which means they're not long-term buy and holds

You hold them for a few hours or a day, maybe 2-3 days

9/x

That has me even more excited because $SYN holders earn 0.2% on all 3x token trades

Another 0.2% goes to anyone who stakes $ETH on the platform

10/x

Side note: Synlev is currently giving away $SYN to anyone who stakes $ETH on the platform right now... I do not want to print the yields because they're godly

Details: synlev.medium.com/synlev-post-la…

11/x

So, what $SYN is doing is basically opening up the entire leveraged ETF/ETN industry on chain

Currently, leveraged ETFs and ETNs are all controlled by international banks and companies like Proshares and Direxion. They capture all the fees

12/x

If Synlev catches on, it could compete with them... only it won't be limited to M-F trading hours

& liquidity won't be limited to people with brokerage accounts and KYC documents

Best of all: fee income will migrate from Wall Street bankers to me + you

12/x

$SYN is global from day 1. It is permissionless. It requires no KYC, and no rubberstamp from a tight-lipped bureaucrat

$SYN will not stop with 3x $ETH tokens

They will add additional 3x tokens

$BTC is likely next

13/x

Then, they will add whatever the community wants so long as a $LINK oracle exists for that asset

Gold will likely be one of the next 3x assets

OK

What are you worried about with $SYN ser?

Well, I can't guarantee $SYN's 3x volumes will grow

14/x

The team will have to keep delivering + they must do it at a rabid f'ing metal-chewing pace bc 30 other teams are working on derivatives

(the others have such pretty whitepapers + roadmaps + they make sweet promises... but I see no contracts on mainnet yet... ONLY $SYN is live)

People keep saying Synthetix $SNX will crush $SYN

First, I'm long $SNX, so if that happens, ok fine. But I think they coexist

$SYN has some advantages over $SNX in its tiny niche

16/x

First of all, it's on the main $ETH chain

$SNX is migrating to a layer 2 (L2)

I have no doubts $SNX will do great on L2 bc its speed will finally start to match centralized solutions...

but still, moving back and forth bw an L1 and an L2 = FRICTION

17/x

FRICTION almost always sucks

Markets detest it

Apes detest it

In fact, I would say virtually all of crypto is a race to destroy all forms of friction

Nothing easier than 3x tokens

NOTHING

$SNX is also building something larger. $SYN is aiming at a niche. And I likey it

18/

+ consider this apes...

If @SynLevdefi hits $10 million in daily volume on its 3x tokens, $SYN should conservatively hit $2.10 or so...

that's nearly a 9x from here

https://twitter.com/redphonecrypto/status/1328150310255267840?s=20

19/x

But look, $10 million in trading volume is a fucking joke

If $SYN taps out there, I will feel like an analytical failure

Few know it, but the chads at @coingecko have a page that tracks the volume of leveraged ETFs on centralized exchanges

20/x

It is a work of art

Looking at it makes you mind begin to whir like that bro in A Beautiful Mind

21/x

Challenge:

If you can scroll all the way to the bottom of the Coingecko page without beginning to salivate over $SYN's future...

Then I will say your heart is cold and vampish and we cannot be frens

coingecko.com/en/etf

22/x

What's next for $SYN?

See screenshot

I like to think of it as a perpetual money machine

Of course for it to win, people must provide liquidity, and actually start using $SYN's $3xBULLETH and $3xBEARETH tokens

23/x

So do your crypto ape duty and begin trading at synlev.com/exchange now ser

If you don't want to trade, provideth them liquidity

Help democratize the world of leveraged ETFs

We are here for alpha

but we are here for freedom, too

🤡 out

PS Understanding decay...

https://twitter.com/redphonecrypto/status/1330563195983982593?s=20