Synapse allows users to send tokens from one chain to another almost immediately by using AMMs deployed across 16+ EVM and non-EVM blockchains. 

Synapse is a cross-chain liquidity network that enables fully non-custodial transfers between EVM and non-EVM compatible chains and L2 systems. Synapse was launched in 2021.

SYN tokenholders own and govern the protocol. They currently take a cut of the transaction fees paid by the users (revenue). Synapse’s investors include CMS Holdings, Alameda Research, Primitive Ventures, etc.

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Synapse

# Synapse Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the portion of total protocol fees that are distributed to liquidity providers, validators, or other supply-side participants. For Synapse, the supply-side fees metric is explicitly set to zero, indicating that Synapse retains 100% of bridge fees as protocol revenue rather than sharing them with liquidity providers or other supply-side stakeholders. This metric answers the question: "How much fee revenue does Synapse distribute to supply-side participants?" The answer is zero dollars across all supported chains.

## 2. Data sources

The calculation relies on the following raw data sources:
- **Blockchain events**: Parsed Synapse bridge contract events from Ethereum, Arbitrum, Avalanche, Base, BSC, Fantom, Optimism, and Polygon blockchains
- **Bridge operations**: `SynapseBridge_TokenMint`, `SynapseBridge_TokenWithdraw`, `SynapseBridge_TokenMintAndSwap`, and `SynapseBridge_TokenWithdrawAndRemove` events capturing cross-chain bridging transactions
- **CCTP transfers**: `CCTP_CircleRequestFulfilled` events for Circle's Cross-Chain Transfer Protocol USDC transfers
- **External data**: End-of-day token price feeds for USD conversion and token metadata for decimal standardization
- **Ntoken mapping**: Hardcoded mapping data linking Synapse ntokens (like nUSD, nETH) to alternative tokens for pricing purposes

## 3. Step-by-step calculation

### Component A: Bridge fee extraction
- **Purpose**: Extract all fees charged by Synapse bridge contracts across supported chains
- **Logic**: The system monitors Synapse bridge contract events across eight blockchains to capture fee-generating transactions. Events are filtered to include token minting operations (when users bridge tokens to a destination chain), token withdrawals (when users claim bridged tokens), combined mint-and-swap operations (bridging with immediate DEX swaps), withdraw-and-remove operations (claiming with liquidity removal), and CCTP circle transfers for USDC bridging. Each event contains fee information in the `fee` field, along with transaction metadata like block timestamp, transaction hash, log index, contract address, and the token being bridged.
- **Key fields**: `block_timestamp` (transaction timing), `transaction_hash` (unique transaction identifier), `account_address` (bridge contract), `token_address` (fee token), `fee_amount` (raw fee amount), `chain` (blockchain network)

### Component B: Ntoken address resolution  
- **Purpose**: Map Synapse ntokens to alternative tokens for accurate pricing
- **Logic**: Synapse uses synthetic tokens called ntokens (like nUSD, nETH) that may not have direct price feeds. The system maintains a hardcoded mapping that links each ntoken to an alternative token with reliable pricing. For example, nUSD tokens are mapped to DAI on most chains, BUSD on BSC, and FRAX on Fantom. The nETH token is consistently mapped to WETH across all chains. This ensures accurate USD conversion by using liquid, well-priced alternative tokens as pricing proxies.
- **Key fields**: `ntoken_address` (original synthetic token), `alternative_token_address` (token used for pricing), `chain` (specific blockchain mapping)

### Component C: USD conversion and standardization
- **Purpose**: Convert raw fee amounts to standardized USD values
- **Logic**: Fee amounts extracted from blockchain events are converted to USD using end-of-day price feeds. The system first corrects for token decimal places (since some tokens use 6 decimals while others use 18) to get the actual token amounts. Then it applies the appropriate USD exchange rate from the price feeds, using alternative token prices for ntokens. All fees are categorized under the 'Bridging' business line with 'bridges' market sector classification. The data is aggregated to daily granularity by truncating timestamps to day boundaries.
- **Key fields**: `timestamp` (daily aggregation boundary), `chain_id` (blockchain identifier), `token_address` (final token used for pricing), `fees` (USD-denominated fee amount)

### Final aggregation
- **Combining components**: The system takes the total daily fees calculated from bridge operations and explicitly sets the supply-side portion to zero
- **Currency conversion**: All fee amounts are converted to USD using end-of-day price feeds, with decimal corrections applied based on token standards  
- **Time aggregation**: Fees are aggregated to daily boundaries using timestamp truncation, with data available at day-level granularity
- **Final calculation**: The supply-side fees metric is calculated by taking the total daily fees from bridge operations and setting the supply-side portion to exactly zero USD. This reflects Synapse's business model where 100% of bridge fees are retained as protocol revenue rather than distributed to liquidity providers or other supply-side participants. The final metric undergoes standard formatting and chain availability filtering to ensure consistent output across all supported blockchains.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Portion of fees distributed to service providers or supply-side participants.

SynapseSYN

Supply-side fees

Supply-side fees

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