CSP DAO Project Review: DeSyn Protocol

Published in

Investments & Partnerships

5 min readOct 10, 2022

DeSyn Protocol is a DeFi asset management protocol in Web 3, which allows users to create and manage customized pools-based portfolios with a variety of on-chain assets such Portfolio/ETFs, tokens, NFTs, derivatives and more via smart contract.

DeSyn Protocols continues to evolve itself to meet the incoming challenges from the market and new demands from customers on every aspect including products, operations and people. While many things are changed to better serve the community, Desyn still holds the same vision since its launch: to build a new generation of DeFi asset management protocol, which gives everyone a secure, transparent and affordable access to create and trade innovative financial products, so as to actively promote an equal financial inclusion all over the world.

DeSyn Protocol is a Tier 1 project with a great team and backing of leading investors. They create more useful financial products with their partners for investors particularly for this bear market, such as leveraged ETFs, leveraged staking ETFs, DeFi lending funds, DeFi market-making funds, and more. Additionally, DeSyn will allow the portfolio managers to deploy strategies in decentralized finance by connecting with other crypto projects such as AAVE, Compound and others, to create fixed income and structured products to better meet market’s demand.

DeSyn Protocol product beta was launched by late Nov in 2021. Since its inception, the project has had two rounds in total: First at 40M valuation and the second at $50M to $80M valuation.

HOW DESYN PROTOCOL FUNCTIONS

The DeSyn Protocol introduces procedures for creating, issuing, rebalancing, managing, and trading on-chain assets (Tokens, NFTs, etc ) using a collection of smart contracts based on customized liquidity pools (Portfolios/ETFs). It includes five key components:

Portfolios/ETFs Management
Trading
Price Oracle
Settlement
DSN

The DeSyn smart contract contains the business logic for everything in the Pool’s lifecycle including creating, issuing, redeeming, rebalancing, and more. A Pool is initially designed and created through the smart contract and its specified Factory. Provided the user has all the underlying, pools are then funded or issued through the standard Issuance Flow. Users can have their Pools updated by issuing a Rebalancing Pool Token. Finally, a Pool can be redeemed by burning the owner’s Pool token and retrieving the components.

There are various participants in the DeSyn network:

Portfolio/ETF Creators: They use their expertise, creativity, and intuition to design, create and issue market-attractive Portfolios/ETFs. Basically, this comprises some traders, KOLs, and fund managers.
Users: They can directly purchase the corresponding Portfolio/ETF from different centralized and decentralized liquidity trading pools for investment. More so, they can issue their corresponding tokens into the pool to get Portfolio/ETF token. Participants hold or exchange the corresponding Portfolio/ETF token for asset management and investment.
Traders: They actively inject liquidity into CEX and DEX to obtain liquidity rewards. At the same time, they also secure the arbitrage opportunities between numerous exchanges and make arbitrage profits. Traders also create better trading liquidity and experience for everyone on the platform.

PRODUCT V2 FEATURES

Since the launching of v1 products, the project has come up with the DeSyn Protocol v2 based on numerous feedbacks from the community and potential partnerships with a variety of projects in the crypto industry.

Customers: DeSyn will not only serve investors and portfolio managers, but also help various projects including DeFi, NFTs, public chains and more, structure their tokens offering into a simple, accessible one.
Fund structure: On v2, the project has come up with the most important feature which is to have a variety of basic fund structures — Open-ended structure and Close-ended structure — for everyone. This way, investors can easily understand them and on the other hand, portfolio managers can comfortably deploy their investment strategies.

Other Features

Other important changes or features on V2 includes:

Abandoning both swap and platform stablecoin functions
Setting up multi-signature function for fund operation
Allowing rebate mechanism for fund operation
Integrate with Uniswap for portfolios managers to conduct liquidity management for portfolio tokens
Streamline each process to better serve customers

UPDATED DSN TOKEN UTILITY

Investors can utilize the DS token to pay for protocol fees, stake to save fees, stake DSN to participate in pre-sale of Portfolios/ETFs, as well as stake DSN to share revenue from DeSyn vault.

Furthermore, portfolio managers can pay for protocol fees, stake to save fees, stake DSN to participate in Portfolios/ETFs launch pad, and also stake DSN to be a member of a partnership program for portfolio managers. The project has also added DeSyn Vault to provide token holders a place for staking and sharing platform revenue.

ROADMAP

2021 Q2