Canto marks the 18th blockchain interconnected by Synapse’s cross-chain liquidity network. Similarly, this is Synapse’s first connection into the Cosmos ecosystem, bringing Synapse closer to its goal of being the most widely-used and built upon cross-chain communications network.
Users can now seamlessly bridge stablecoins into Canto from all of the connected chains in which Synapse hosts a stableswap pool. When a user bridges into Canto, they receive $NOTE, the native stablecoin within the Canto ecosystem which is used across their native DeFi apps.
Expanding Access to Canto’s Free Public Infrastructure
Canto is a general-purpose blockchain with EVM compatibility built around the idea of free public infrastructure (FPI) — the notion of FPI describes a blockchain system in which its core primitives are baked into the protocol as opposed to separate dapps with their own token. FPI argues that these external dapps are always forced to extract rent from users, which is at odds with how primitives should operate.
Canto features three core primitives that are home to the protocol. Since none of them have their own token, users can access them without any transaction fees.
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Canto DEX — a zero-fee DEX
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Canto Lending Market — a pooled lending Compound v2 fork
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$NOTE — a fully collateralized unit of account, valued at $1 USD, issued by the Canto Lending Market
Before today, the only way to enter the Canto ecosystem is through Gravity Bridge. Gravity only supports the bridging of assets into Canto from Ethereum and Cosmos Hub, leaving out a large swath of assets that exist on other blockchains.
Enter Synapse, crypto’s most widely used cross-chain messaging system and value bridge. Synapse now connects Canto to the remainder of the multi-chain ecosystem, enabling users and assets that exist on chains like Arbitrum, Optimism, Avalanche, and BNB Chain, and more. With a the Synapse bridge on Canto, more users can enter the ecosystem, furthering Canto’s growth plans. In tandem, increased volume through Synapse grows the protocol and expands Synapse to a new suite of users. As the Canto ecosystem grows, Synapse will be extremely well positioned to cement itself as a core piece of infrastructure within the network.
The bridge implementation features a new liquidity pool comprised of nUSD and NOTE. This new pool allows users to directly swap their stablecoins on one blockchain to NOTE, ready to be used in Canto. Similarly, this new pool would allow users to directly bridge their NOTE from Canto into stablecoins on any of the blockchains supported by Synapse. Synapse will host this pool so that when users bridge, they can deposit any stablecoin on their desired chain and redeem directly into NOTE on Canto based on the current relative price of NOTE.
Opportunities on Canto
There is nearly $100 million of TVL on Canto today, bootstrapped by the network’s initial liquidity mining campaign. Users who bridge into the ecosystem will be able to earn yield on both the native DEX and lending market including CANTO/NOTE LP, NOTE/USDC LP, and NOTE/USDT LP. For users that need to swap their NOTE to another asset once in the ecosystem, they can do so via slingshot.
Additionally, Synapse can also help any project wanting to become cross-chain and deploy onto Canto by adding their token (or any other EVM token) to the Synapse bridge and making it seamlessly bridgeable into Canto. It can also increase connectivity between Canto and the rest of the EVM world by allowing Canto token to be bridgeable to any EVM chain connected by Synapse. If you wish to do so, please reach out to Synapse contributors in the Discord.
About Synapse
Synapse is a universal cross-chain liquidity network that connects blockchains by offering an extensible cross-chain communication protocol that supports assets, smart contract calls, and more. By leveraging Synapse, blockchains can easily and securely interoperate with each other, and developers can build truly cross-chain applications including cross-chain DEX, lending platforms, margining systems, derivatives markets, yield aggregators, and much more.
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