Infrastructure
Where a deposit goes, who can move it, and how to check it yourself.
Syntropia keeps the path of every deposit short and public. Funds enter through audited tokenized vaults, are settled into the treasury, and are put to work in delta-neutral strategies. Every wallet on that path is on-chain, so you can follow your money at any moment without taking our word for it. How to do that is on the Transparency page.
Deposits and withdrawals
Deposits go into tokenized vaults, never to Syntropia directly:
- Ethereum: synUSD+, synUSD, synUSDx and synBTC are Lagoon Finance vaults. Lagoon's contracts are audited by reputable firms, with the reports available here.
- Solana: synUSD (Solana) is a Voltr vault, with deposits made through Backyard.
When you deposit, you receive share tokens of that vault. For stablecoin vaults a share starts at $1 and appreciates as the strategy earns; synBTC shares are denominated in BTC. To withdraw, you redeem your shares for the underlying asset together with the accumulated yield.
Deposits and redemptions are settled in batches. Until a batch is settled, the funds stay inside the vault contract and nowhere else.
Treasury
Once settled, capital moves from the vaults into the treasury. The treasury funds the strategies, and yield and redemptions flow back through it to the vaults.
The treasury is controlled by multisigs, cold wallets and ephemeral wallets that the trading software generates on each restart in encrypted RAM. No credential controlling the treasury has ever been disclosed to an online device.
The treasury never touches centralized exchanges or custodians. Capital is deployed to on-chain venues only, in delta-neutral strategies that earn yield without taking a directional bet on the market. See Risk levels for how the tranches share that portfolio.
Trading software
The trading software runs on trusted, certified hosting, inside an encrypted virtual machine with no inbound access. Strict policies govern it: even a restart of the trading software requires approval from the treasury wallets, and the ephemeral addresses are erased whenever the machine shuts down. Together these measures make it very hard for an attacker to take control of the funds delegated to the strategy.
Circuit breakers
The trading software monitors the venues it operates on around the clock. When it detects an anomaly, such as a stablecoin losing its peg, liquidity draining from a venue or a protocol exploit, it pauses its operations and pages the developers through PagerDuty, or runs automated scripts to avoid capital loss.