Synapse ETH (Arbitrum)
nETH, or "nexus" ETH, is a cross-chain asset pegged to ETH and fully backed by the nexus ETH on Ethereum that consists solely of ETH. nETH is used to enable fast bridging of ETH to and from L2 networks such as Arbitrum.
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- Asset Type: ERC-20
- Ranking inside Exponential (excluding stables): #218
- Volume (24H): $79.2
- ATH: $8,970.25 (05/12/2022)
- ATL: $376.10 (05/13/2022)
nETH is a low-cap, fully collateralized asset. This asset is exposed to the underlying risks of Synapse, a protocol rated as Watch out.
nETH has an uncapped supply but has inflation control or burn mechanisms in place.
nETH is highly correlated to the overall market.
How is nETH created?
nETH (nexus ETH) is a cross-chain asset pegged to ETH. It is fully backed by nETH deposits in a liquidity pool on Ethereum that currently solely consists of ETH. nETH is minted by bridging ETH from mainnet to nETH on any other available destination chain. Once you have nETH on the destination chain, users can pair it with native ETH to provide liquidity.
What is nETH used for?
nETH is used to enable fast bridging of ETH to and from various blockchain networks that are available on Synapse.
How is the price of nETH kept stable?
Liquidity providers (LPs) are incentivized to pair nETH with ETH on each chain to earn bridging fees and SYN emissions. As the pool balance changes on each chain, arbitragers are incentivized to rebalance the pool through a deposit or swap bonus. Swapping or bridging into pools that are over-supplied can lead to discounted fees while swapping in pools that are under-supplied can be more expensive.
