Cross-chain lending platform Synonym Finance has announced that it recently raised $1.5 million in an oversubscribed seed round. The round saw participation from Robot Ventures, Big Brain Holdings, Veris Ventures, AWVC, SerDAO, as well as angel investors from Arbitrum and Jones DAO.
Synonym is taking a canonical approach to using the Wormhole stack to improve DeFi for institutions, users, and developers on web3 and beyond, beginning with a global cross-chain money market.
Synonym, which is built on Arbitrum and the Wormhole xChain Technology Stack, provides the users of DeFi with a strong money market that is very liquid and efficient across chains. The liquidity that exists on-chain is becoming more and more fragmented, and this possess a threat to the DeFi ecosystem. By enabling experts to leverage the same liquidity across multiple chains, Synonym’s cross-chain money market eliminates the issues of fragmented liquidity and ineffective bridging.
Inefficient practices like high fees, sluggish transfer times, and the pain of wrapping and unwrapping tokens result from DeFi professionals trying out various chains, which forces them to bridge assets.
The cross-chain lending industry is in its infancy, but Synonym is shaping out to be a versatile protocol that can bring capital and borrow amounts into emerging ecosystems. Synonym allows users to borrow assets on one blockchain using collateral assets on another, hence solving the liquidity fragmentation problem.
Synonym is committed to providing its users with an exceptional money market experience by utilising innovative technologies such as Circle’s CCTP. Ultimately, Synonym aspires to become the go-to platform for creative L3s, app-chains, and significant L2 rollups to lend and borrow funds across different chains.