SyncSwap USDC-ETH pool

The pair ETH—USDC and the SyncSwap platform are selected as a combination which allows to implement a strategy which has an expected APY above 5% and has low probability of occurring of risks alongside with high TVL. Also, the strategy operates on a blockchain that haven’t been introduced on Parallax before which is likely to attract extra depositors due to marketing effect.

The “ETH—USDC” strategy allows users to deposit their assets in four ways in an zkSync vault using either: I) LP token; II) ETH and USDC separately; III) ERC20 token (that is in our whitelist); IV) solo native token (ETH). Token ratio in the pool is 50:50. In case an ETH token is deposited it is split into two even parts. One half is used swapped for USDC while the other half remains as is. In case an ERC20 token is deposited it is swapped for WETH first and the app unwraps it to make ETH, after that the strategy performs the same actions as if it was ETH deposited initially. Having ETH and USDC as the required asset the vault provides these funds as liquidity to the SyncSwap and obtains ETH/USDC LP token in return. No staking to be done in scope of this strategy hence rewards consist of swap fees only. Rewards are obtained in ETH and are immediately added to a user’s deposit. Thus, to perform a compound the strategy relies on a difference between a amount of a deposit at a given moment and its amount at a moment of a previous compound (or initial amount if no compounds have been made).

When a user decides to withdraw then the following options are available for them: I) LP token; II) ETH and USDC separately, III) solo ETH and IV) whitelisted ERC20. Users should pay Parallax fee on their earnings upon withdrawal.