SynFutures Potential Airdrop Value Analysis and Interaction Strategy

Original source: SynFutures

1. Project Introduction

SynFutures is currently the most outstanding decentralized perpetual contract protocol on Blast. The current TVL exceeds $58 million, total trading volume exceeds $26 billion, and daily trading volume remains stable at $1 billion, with all indicators looking very good.

Data source: https://info.synfutures.com/

The team has raised a total of $38 million in two rounds of financing, with well-known institutions such as Pantera, Polychain, and Dragonfly participating. The protocol has been audited by Quantstamp.

2. Airdrop Return Analysis

SynFutures Airdrop Rewards: SynFutures participated in the Blast Big Bang event and promised to allocate a certain proportion of tokens for airdrops, which is a clear airdrop. Currently, SynFutures has launched Epoch 3 activities, where inviting friends, adding liquidity, making market orders, and trading can earn points to receive future airdrop rewards from SynFutures.

Blast Points Rewards: ETH and USDB held on SynFutures can earn Blast Points rewards, sharing 50% of Blast's future airdrops. Additionally, new user interactions in projects supported by the Blast Multiplier event can double the Blast Points earned.

Blast Gold Rewards: By trading and providing liquidity on SynFutures, you can earn Blast Gold rewards, sharing 50% of Blast's future airdrops.

Blast Native Yield: Holding ETH on SynFutures can earn 4% annualized, while USDB can earn 15% annualized.

From my experience mining Vertex, for derivative projects that earn points through trading volume, the first phase return is about 10 times the trading fees, which is not a problem. Overall, the return is around 4 to 5 times. Vertex initially had little attention, which was the best time for interaction; later, I regretted not investing heavily.

If the valuation aligns with $AEVO, then based on a $3 billion calculation, with a 5% to 10% airdrop ratio, there could be about $150 million to $300 million in airdrops. Coupled with the rewards from Blast, a conservative estimate of 3-5 times return should not be a problem.

3. Interaction Strategies

1. Establish Invitation Relationships

First, create 2 small accounts to establish a binding relationship, ensuring you earn the most Points. The first account can use my invitation link to receive a 30% bonus for the first 7 days.

Link: https://oyster.synfutures.com/#/odyssey/44Q2P

2. Earn Points by Providing Liquidity

Similar to providing liquidity on UniSwap V3, adding liquidity on SynFutures also requires selecting a price range. The narrower the price range, the more fees and points earned, but the corresponding impermanent loss is also higher. The second red box indicates that if the market price exceeds the price range, your liquidity will be removed and liquidated. To avoid this situation, we can choose a wider price range to prevent liquidation. For example, the price range I selected in the image is 15,907 ~ 255,091; the probability of exceeding this price range is small enough to be negligible. Even in the most extreme case of continuous decline, this price range allows me to comfortably remove liquidity and avoid liquidation.

Additionally, providing liquidity within a wider range makes it easier to cover impermanent losses with the earned fees, turning it into a profitable state, especially since many users are frequently trading to earn points.

3. Earn Points through Trading

Considering the invitation relationship, we only need to use the last invited account to interact with the protocol, allowing the other two accounts to also earn points. Currently, trading volume is settled once every 24 hours, and you can see your trading volume and earned points from the previous day in the team section.

Earning points through trading is relatively simple, and the costs are controllable. You just need to continuously buy and sell at market prices. Before making large trades, you can try small amounts to understand the situation before proceeding to avoid losses.

If you are manually trading, here’s a little tip: I suggest opening two browsers, placing a long order in Browser A and clicking Buy, which will pop up the MetaMask confirmation window. At this point, do not click confirm yet. Then, open another browser to place a short order and click Sell, which will also pop up the MetaMask confirmation window; do not click confirm yet. Once both are prepared, first click confirm on the Buy popup, then click confirm on the Sell popup. This ensures that your closing trade follows your opening trade, preventing others from arbitraging. Set a larger slippage to avoid failures.

4. Earn Points through Market Making

This is similar to centralized exchanges; just enter the price, quantity, and confirm the order. The second red box shows the maximum points you can earn from this limit order. The larger the order amount, the more points you earn. Additionally, note that if the order is filled within 12 hours, points will be calculated based on 12 hours; if filled after 12 hours, points will be calculated based on the actual duration, with a maximum of 7 days.

Note that limit orders have a 0.01% rebate; for example, if you trade $10,000, you can earn an additional $1. Also, your own limit orders can be filled by your own market orders. Combining this with point 2, you can actually implement a strategy to earn points with lower friction.

5. Enjoy VIP Trading Fee Discounts

This doesn’t need much introduction; similarly, combining with point 2 can further reduce costs. The discounted fees will be directly credited to your address next month.

For more detailed information, see the official article: https://medium.com/synfutures/v3-update-introducing-fee-tiering-and-institutional-tools-3d01462ce92c

It’s worth mentioning that their current trading competition ranks based on weekly trading volume, with the top 3 prizes being $10,000, $7,500, and $5,000. Strong players can leverage this event to further reduce interaction costs.

6. Trade and Arbitrage through SDK

The official SDK is now open, see here: https://www.npmjs.com/package/@synfutures/oyster-sdk

If you have the skills and experience, you can use their SDK for automated arbitrage and trading, which is quite convenient. Additionally, there are often price discrepancies between their prices and centralized exchanges; during significant drops, I have experienced 3-5 points of difference. From the addresses of several market makers I track, the returns are still good, but unfortunately, manual trading can't compete with bots.

4. Conclusion

This should be the most detailed guide on SynFutures airdrops on the entire network!!!

I am personally quite interested in decentralized derivatives-related projects, so if I come across good and reliable projects, I will shift some of my trading to these projects, occasionally yielding some good returns. From the current perspective, the SynFutures project is undervalued; I believe its TVL has significant growth potential, reaching $100-200 million should not be a problem. When others overlook it, it’s an opportunity to invest heavily; this is a profound lesson Wormhole taught me.

If this article has helped you, feel free to use my invitation link to get a 30% Boost: https://oyster.synfutures.com/#/odyssey/44Q2P