Token Description & Project Background

Synapse is an interoperability protocol that facilitates secure communication across different blockchain networks. By operating on prominent networks, Synapse empowers developers to easily construct cross-chain applications that support their assets and smart contract interactions. The protocol offers a cross-chain automated market maker (AMM) and asset bridge, allowing efficient asset transfers with minimal price slippage through the utiliation of “stableswap” AMMs deployed on integrated chains. 

The native token of the Synapse protocol, SYNm serves as a governance token enabling holders to vote on protocol parameters and actively participate in shaping the future development and direction of the protocol. Additionally, SYN is used to reward liquidity providers for contributing to the network. 

Synapse operates under a decentralized autonomous organization (DAO) model, with no specific listed founders. The project is managed and controlled collectively by the DAO. Unfortunately, Synapse experienced a hack in November 2021, resulting in the loss of approximately US$8 million. 

Synapse was previously known as Nerve Finance, A BSC based AMM specializing in low-slippage stablecoin trades, Synapse underwent a rebranding. Alongside the rebranded protocol, the SYN token was airdropped to participants in August 2021. 

Risks of SYN

Like an investment in other crypto assets, there are some general risks to investing in SYN. These include:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk. For additional information of these and other general risks associated with crypto assets and Uphold’s platform, please refer to the Risks Specific to Holding Digital Assets statement.

In addition to these general risks, an investment in SYN is subject to the following specific risks:

• SYN operates using smart contracts, which have an association with vulnerabilities and security breaches. Despite undergoing successful audits by well-regarded third-party entities, it is essential to acknowledge the existence of inherent risks. Furthermore, the project’s future trajectory hinges on the decisions made by a global community of SYN token holders. 

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with SYN. Investors should conduct their own research and perform their own assessment before trading any crypto asset to determine the appropriate level of risk for their personal circumstances.

The SYN community and the Synapse DAO are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of SYN have no recourse to SYN community, Synapse DAO, or Uphold if SYN declines in value for any reason.

Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Uphold’s Evaluation Process

Prior to listing SYN on the Uphold Platform, Uphold performed due diligence on SYN and determined that SYN is unlikely to be a security or derivative under relevant securities legislation. Uphold’s analysis including reviewing publicly available information on the following: 

• The creation, governance, usage, and design of SYN, including ensuring the source code is open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 
• The supply, demand, maturity, utility, and liquidity of SYN.
• Any marketing materials put forward by the SYN social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
• Material technical risks associated with SYN, including any code defects, security breaches and other threats concerning SYN and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.
• Legal and regulatory risks associated with SYN, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of SYN. 

General

Uphold has prepared this Crypto Asset Statement based on publicly available information. Although Uphold has taken steps to obtain information from apparently reliable sources, information contained in this Crypto Asset Statement may be inaccurate, incomplete or out-of-date. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.

Uphold users should read the Risks Specific To Holding Digital Assets statement for additional discussion of general risks associated with crypto assets made available through the Uphold platform.  

Canadian residents, please note that Uphold has filed an application for registration in certain Canadian jurisdictions but has not yet obtained registration. Until such time as Uphold obtains registration, Uphold has agreed to abide by the terms of an undertaking available at the following link. Please also review the Uphold Canada – Crypto Risk Statement for additional discussion of general risks associated with the crypto assets made available through Uphold Platform. Please be aware that statutory rights of action for damages or rescission in section 130.1 of the Securities Act (Ontario) and, if applicable, similar statutory rights under securities legislation in the other provinces and territories of Canada do not apply in respect of this Crypto Asset Statement or other disclosures on the Uphold website and Risks Specific To Holding Digital Assets statement. 

Last updated on June 21, 2023.