Dinero just launched a new partnership with Synonym Finance –an multi-chain money market protocol. In this guide I’ll show you how to use Synonym Finance and of course, how to start farming it with your pxETH.
Please note: This guide is not a recommendation and interacting with DeFi protocols can be risky. Please do your own research and use your best judgment. Best of luck out there!
Overviews
Before we start, let's go over all the details to make sure you're fully prepared.
What is pxETH?
pxETH is the unstaked ETH deposited into Dinero’s ETH liquid staking solution. It’s liquid, fungible, and pegged 1:1 to ETH. Functionally, you can think of it as wrapped ETH (WETH).
It’s worth noting that the ETH underlying pxETH is staked in Dinero validators, but pxETH does not earn ETH staking yield. Check out this guide for more information on pxETH’s two-token design and how to earn staking yield. pxETH is for adventurers looking to actively farm DeFi yields.
What is Synonym Finance?
Synonym Finance is a multi-chain money market that allows users to lend, borrow and earn from chains that are supported by Wormhole. Assets such as Liquid Staking Tokens (LSTs), Liquid Restaking Tokens (LRTs), stablecoins and others. In this tutorial, we’ll be utilizing pxETH.
Obtaining pxETH
Before getting started, you’ll need to get your hands on pxETH. You can mint some with ETH you already own or you can buy it through decentralized exchanges like PancakeSwap, Curve, or Balancer.
If you’re looking to mint pxETH, navigate to the mint page here. The mint screen will provide you with two options:
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Mint pxETH with ETH
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Deposit to apxETH vault with ETH
If you want to earn ETH staking yields, stop reading this guide and deposit to the apxETH staking vault. But, if you’re looking to earn gauge rewards like a real farmer, then move forward with minting pxETH.
Remember: pxETH does not earn staking yields. Instead, you’ll earn yield on pxETH from opportunities like the ones outlined in this guide.
Earning on Synonym Finance
Supplying pxETH on Synonym FinanceAfter minting pxETH, earning pxETH rewards is easy: simply supply pxETH to receive SYNO, ARB, and W tokens. I’ll show you how to suplply pxETH below.
Since we already own pxETH, the next steps are simple:
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Connect your wallet if you haven’t already
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Enter the amount of pxETH you’d like to supply to Synonym
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Approve your pxETH, wait for your approval and sign any transactions
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You are set!
NOTE: Users with SYNO can pair it with ETH and supply it as liquidity on Balancer. The SYNO/ETH LP token can be further locked to get protocol revenue and W, ARB and SYNO Rewards (DYOR)
NOTE: Users can withdraw at any time, although transactions that are made on non-Arbitrum chains take around 20 minutes as Synonym waits for full chain finality. This is done to ensure the highest risk assumptions for cross-chain interactions.
After supplying pxETH users can now borrow any other asset on Synonym and dive into advanced cross-chain strategies! Users can deposit pxETH as collateral and borrow on Arbitrum, Base, OP and Scroll to take advantage of opportunities without parting ways with pxETH. Just make sure to closely check your health ratio to avoid liquidation.
Rewards on Synonym Finance
All positions on Synonym earn BIPs (Basis Points). Accumulated BIPs are used to distribute rewards every Epoch (7 days). Note that assets have different multipliers that are used to accrue BIPS. pxETH, for example, has a 4x multiplier, which means that every dollar supplied earns 4 BIPs per Day.
At the end of every epoch, Synonym distributes SYNO, ARB and W tokens as part of their “SYNO Summer” campaign. These rewards are distributed based on each user's share of total BIPs earned that epoch. Note that rewards are always distributed on Arbitrum, so you would need to have some gas there.