Sync.fun White Paper
A Decentralized SocialFi Protocol on Solana
DISCLAIMER
The information provided in this white paper represents the current vision of our project. It is not intended as a commitment or guarantee of future performance or outcomes. The details and plans described here are subject to change without prior notice, as the project may evolve based on new insights, market conditions, technological advancements, or other factors.
We reserve the right to modify, update, or discontinue any aspect of the project at our discretion. This document is for informational purposes only and should not be construed as a promise or assurance of specific results or timelines (see disclaimer for full details).
Sync.fun links 🔗
TWITTER LINK: https://x.com/Syncdotfun
TELEGRAM LINK: https://t.me/syncdotfun
MEDIUM: (Coming soon)
INSTAGRAM: (Coming soon)
WEBSITE: (Coming soon)
INTRODUCTION
As of the first quarter of 2024, the total cryptocurrency market capitalization has reached approximately $2.9 trillion. This rapidly expanding market has attracted millions of participants eager to capitalize on the potential for significant returns.
However, despite the opportunities, consistently achieving success in this space remains challenging. According to reports from CoinGecko and media outlets like CNBC, over 80% of market participants experience losses, with only a minority managing to generate meaningful profits.
Achieving long-term success in the cryptocurrency market demands extensive research, analysis, and continuous monitoring of market trends. This requires a significant investment of time and effort, which many participants may find impractical.
Sync.fun addresses this challenge by offering a streamlined solution for those who prefer a more passive approach to portfolio management. Through its platform, users can "sync" their portfolios with experienced traders, automatically replicating their asset allocations and trades.
Sync.fun allows any trader—whether a well-known Key Opinion Leader (KOL), a peer, or an anonymous participant—to create a public portfolio and offer others the ability to mirror their trades in exchange for a fee. Each portfolio's performance is fully transparent, allowing users to make informed decisions about whom to follow based on proven results.
This system fosters a mutually beneficial ecosystem, where successful traders attract more Syncers, increasing their earnings through fees, while Syncers gain access to the strategies of those they believe can deliver long-term portfolio growth. In doing so, Sync.fun provides a seamless, hands-off solution for portfolio replication that benefits both traders and their Syncers.
1 - INITIAL MARKET THESIS
A) Web3 is led by social dynamics
The growth of Web3 is intrinsically linked to the Creator economy, which is reshaping market dynamics. Nowhere is this more evident than in SocialFi, where social networking intersects with decentralized finance.
A key example is Friend.tech, a SocialFi platform on Base, which achieved $220 million in trading volume within its first month. Similarly, Farcaster, another SocialFi platform, raised over $150 million at a $1 billion valuation in 2024. Platforms such as Mirror and Zora further empower Creators to monetize content directly through community engagement.
Key Opinion Leaders (KOLs) play a pivotal role in shaping market dynamics, especially within ecosystems like Solana, where KOLs and their communities can significantly influence trading activity. Their impact is amplified through platforms such as Twitter and Telegram, where a considerable portion of their followers actively engage with the strategies they promote.
Beyond SocialFi and KOLs, social dynamics also shape decentralized governance structures, particularly through Decentralized Autonomous Organizations (DAOs). By 2024, 2.5 million individuals are actively participating in DAO voting and submitting proposals, highlighting the community-driven nature of Web3.
This growing involvement reflects the increasing importance of decentralized decision-making and governance, where participants collaboratively shape the future of projects and protocols through their votes.
Ultimately, the success of many Web3 projects is driven by trends, narratives, and collective action, making Web3 inherently social. Whether it's a recommendation from a trusted friend, a call to action from an influential figure on Twitter, or insights shared in a Telegram group, decisions in Web3 are deeply influenced by social interactions.
In essence, Web3 is built on social networks, shared narratives, and collective decisions, highlighting that Web3 is social at its core.
B) The need for hands-off solutions
Successfully navigating Web3 projects is far from simple.
It’s time-consuming, requires access to high-quality information, and is often complicated by self-proclaimed experts who may exaggerate their capabilities.
Individuals have to evaluate thousands of new projects launching daily, each carrying its own set of risks, including the potential for scams. This process involves identifying the most promising opportunities and determining optimal entry and exit points.
Many find this process overwhelming, leading participants to prefer following and replicating the strategies of trusted individuals with a proven track record.
The appeal of ‘hands-off strategies’ is rapidly increasing, much like the passive portfolio management options available in traditional finance. For instance, as of the first quarter of 2024, the global ETF market reached a new high, with assets valued at approximately $12.71 trillion. This reflects the widespread demand for more automated, passive solutions.
However, within Web3, achieving this level of simplicity is still a challenge.
Who can be trusted in this space? How can you verify their track record? And even if they are successful, how can you seamlessly replicate their decisions in real time?
Currently, a transparent and straightforward 'hands-off solution' for managing assets in Web3 is still missing from the market.
2 - SYNC.FUN: THE SOCIAL TRADING SOLUTION
A) What is Sync.fun?
Sync.fun is a SocialFi platform that allows users to mirror the strategies of others through a system of Syncfolios. A Syncfolio is a program on the Solana blockchain that manages token allocations and trades, enabling users to join and replicate the activities of Syncfolio Creators.
These Creators—whether they are friends, influencers, or experienced users—can charge fees for allowing others to join their Syncfolio. Once users join the Creator’s Syncfolio, they automatically mirror the Creator’s token allocations and actions.
Syncers are users who join a Creator’s Syncfolio to replicate its strategy.
Creators are users who set up and share Syncfolios, allowing others to mirror their actions within the Syncfolio.
To participate, Syncers need to access the Creator’s sharing link, which directs them to the Syncfolio’s page. This link provides access to view and join the Syncfolio.
Sync.fun is designed to benefit all participants: Syncers can replicate strategies they find promising, while Creators can generate rewards by sharing their expertise and allowing others to join their Syncfolios.
Here’s how it works for Syncers and Creators:
A-1) Syncers
STEP 1: Find a Syncfolio
To start, users can discover Creator's Syncfolio through multiple options. You can either browse Sync.fun’s app, which features a directory of shared Syncfolio, or access a sharing link provided by a Creator directly.
Within the app’s browsing section, users can apply various filters to help them choose a Syncfolio. These include performance metrics, token types, number of Syncers, reviews, safety modes, and more. This transparent filtering system allows you to quickly evaluate Syncfolio based on your specific preferences, such as risk level or asset types.
The platform ensures you have access to all the necessary details to make an informed decision before joining a Creator’s Syncfolio.
STEP 2: Syncing
Once a Creator’s Syncfolio is selected, the Syncer must deposit the desired amount of tokens to begin syncing. Only tokens whitelisted by the Creator are allowed to be sent to the Syncfolio, a safety measure that will be explained in detail later.
The Syncer will then hold a proportional share of the Creator's Syncfolio, determined by the amount they contribute relative to the total value of the Syncfolio. This allows Syncers to benefit from the Creator's trades, replicating their strategy in a passive manner.
By mirroring the positions of the chosen Creator, Syncers align their strategies with those of experienced individuals, leveraging their expertise without needing to actively manage their portfolio.
Syncers retain full control over their assets and can terminate the synchronization at any time, with the option to withdraw their tokens immediately.
A-2) Creators
STEP 1: Syncfolio creation
When setting up a Syncfolio, the Creator first pays a one-time protocol fee to cover platform resources. After this, they deposit funds into the Syncfolio.
STEP 2: Sharing policy
Creators then establish the Syncfolio’s sharing policy, which determines how Syncers can join. The options include:
Public: The Syncfolio is listed in the Sync.fun app’s public directory, visible to all users.
Unlisted: The Syncfolio is hidden from the public directory but accessible through a sharing link.
Private: Only whitelisted Syncers can access the Syncfolio.
STEP 3: Safety mode
Creators choose a safety mode for their Syncfolio:
Safe Mode: Restricts trading to tokens from one of several trusted whitelists, maximizing safety for Syncers.
Separated Mode: Allows the Creator to trade any token, but Syncers maintain control by linking their own Syncfolio and managing their own token whitelists.
Freedom Mode: The Creator can trade any token without restrictions, and Syncers must trust the Creator fully.
STEP 4: Creator fees
The Creator establishes how much Syncers must pay to access their Syncfolio. These fees provide a way for Creators to monetize their strategies. There are several fee models that the Creator can choose from, such as one-time fixed fees, percentage-based fees, performance-based fees, or subscription fees.
STEP 5: Share
Once the Syncfolio is set up and configured, the Creator can share it by providing a direct sharing link. Syncers who join the Syncfolio will automatically mirror the Creator’s trades and allocations in real-time.
STEP 6: Start trading
With all setup steps completed, the Creator can now begin trading within their Syncfolio. As the Creator executes trades and reallocates assets, the Syncers' portfolios will be adjusted accordingly.
A-3) Other Sync.fun use cases
Beyond the primary use case of publicly sharing Syncfolios for others to follow, Sync.fun offers several additional applications for managing assets and portfolios. Creators and users alike can benefit from Sync.fun’s flexibility, whether they wish to collaborate with others or simply manage their assets independently.
Token Reallocation
Sync.fun provides tools for managing asset allocations. Sync.fun offers both manual and automated solutions to suit various preferences.
Desired Allocation: Users can define a specific target allocation for their assets, such as 50% SOL, 30% USDC, and 20% USDT. This desired allocation acts as a blueprint for how the portfolio should be structured.
Manual Reallocation: For users who prefer hands-on management, manual reallocation is available. Users can make adjustments to their portfolio at any time, reallocating assets as needed to maintain the desired balance or to adapt to changing market conditions.
Automatic Reallocation: For a more streamlined approach, Sync.fun offers automated reallocation through its bots. These bots automatically adjust the portfolio’s asset distribution based on the user’s desired allocation. This ensures that even as market values fluctuate, the portfolio remains aligned with the user’s preferences. Advanced settings allow users to fine-tune how and when reallocations occur, ensuring the portfolio maintains the exact proportions set by the user.
Full Ownership and Flexibility: Sync.fun provides users with complete ownership over their Syncfolios, meaning they have full autonomy to make changes as they see fit. Whether adjusting asset allocations manually or relying on automated bots, users are in control while maintaining safety through the platform’s built-in mechanisms.
Personal use
Syncfolio can be used by individuals who prefer not to follow or share strategies publicly but wish to manage their own portfolio with added convenience. For those users, Sync.fun offers features like automatic rebalancing. This allows users to set a desired asset allocation, and the Syncfolio will automatically adjust itself over time to maintain these proportions, offering a streamlined, hands-off approach to portfolio management. This feature makes Syncfolios attractive for personal use, even without sharing the portfolio or following others.
Exclusive Syncfolio: A Creator may set up a Syncfolio that is not open to the public but accessible only to a select group. This could be for high-net-worth individuals or private users who want to follow exclusive strategies from an experienced Creator without the public visibility.
Family and friends groups: With private Syncfolios, users can create a shared portfolio for a small group, such as family or close friends. For example, a user may set up a Syncfolio and whitelist only their family members, allowing everyone to pool assets together. One person could manage the trades, while the others passively follow the strategy, making it an easy and secure way to collaborate on investments.
Unlisted Syncfolios for controlled sharing: Some Creators may wish to keep their Syncfolio hidden from the public directory but still share it with trusted individuals via a direct link. This option allows them to maintain control over their portfolio's visibility while selectively inviting others to follow their strategy.
B) Mutual incentives
Sync.fun creates a system where both Creators and Syncers benefit from aligning their interests through transparent strategies. Syncers can easily evaluate Creators by viewing clear performance metrics. Creators who consistently demonstrate strong performance are likely to attract more Syncers, increasing their revenue through fees. This dynamic pushes Creators to continuously refine their strategies while providing Syncers with confidence in following successful and transparent portfolios.
To better illustrate how Creators and Syncers interact within this framework, we can look at it through the lens of game theory. In this model, both parties make decisions based on transparency and trust, resulting in varying payoffs.
Before looking at the payoff matrix, here are the key terms to understand:
Transparent Strategy: Refers to the Creator following the platform’s guidelines and ensuring full transparency in their trading strategy.
Syncer Joins: Refers to the Syncer deciding to mirror the Creator's strategy by syncing with their Syncfolio.
Non-Transparent Strategy: The Creator does not follow platform guidelines, creating potential risks for Syncers.
Syncer Does Not Join: The Syncer chooses not to sync with the Creator’s Syncfolio due to lack of trust or transparency.
Now, the following matrix shows the potential outcomes:
| STRATEGY | CREATOR IS TRANSPARENT | CREATOR IS NOT TRANSPARENT |
|---|---|---|
SYNCER JOINS | CREATOR: +3, SYNCER: +3 | CREATOR: +1, SYNCER: -1 |
SYNCER DOES NOT JOIN | CREATOR: -1, SYNCER: +1 | CREATOR: -2, SYNCER: -2 |
In this model:
Mutual Transparency: When both the Creator uses a transparent strategy and the Syncer joins, both parties receive the highest reward (+3), as the Creator gains trust and Syncers benefit from a clear, successful strategy.
Partial Transparency: If the Syncer joins but the Creator does not use a transparent strategy, the Creator gains some benefit (+1), but the Syncer incurs a loss (-1) due to poor strategy or lack of trustworthiness.
Non-Participation: When the Syncer chooses not to join, both parties see smaller payoffs. The Creator misses out on Syncers (-1), while the Syncer retains some safety (+1) by not engaging with a non-transparent strategy.
3 - SYNC.FUN TECHNICAL OVERVIEW
A) Prelude
A-1) Solana VS EVM terms
Program vs. Smart Contract: On Solana, the term "program" is used instead of "smart contract." A "program" on Solana functions similarly to a smart contract on Ethereum in that it is the code executed on the blockchain. However, Solana programs interact with "accounts," which play a central role in storing data and managing interactions on the blockchain, making the structure different from Ethereum's smart contract model.
Accounts on Solana vs. Accounts on EVM: While both Solana and Ethereum (EVM) use accounts, their roles and functionalities differ significantly. In Solana, accounts are crucial to how programs execute, manage states, and interact with data. Solana's accounts are more versatile, as they are used not just for holding tokens but also for managing data, ownership, and executable code. This contrasts with Ethereum's accounts, where the distinction between externally owned accounts (EOAs) and contract accounts is more pronounced, and data management is typically handled within the smart contracts themselves.
Instructions vs. Transactions: Solana vs. EVM: On Solana, instructions are individual operations within a program, similar to function calls. A transaction is a bundle of one or more instructions that must all succeed or fail together. In contrast, on Ethereum (EVM), transactions typically involve executing a single contract call or transferring assets, with less emphasis on bundling multiple operations. Solana’s structure allows for more complex interactions within a single transaction, enhancing flexibility and efficiency.
A-2) Sync.fun terms
Syncfolio: Syncfolios are the core component of the Sync.fun ecosystem. They act like wallets but are managed by a program on the Solana blockchain, allowing users to transfer tokens, automate reallocations, and execute trades. Unlike standard wallets, Syncfolios can be shared, enabling others to replicate the Creator’s trades and portfolio. Essentially, a Syncfolio is a "shareable wallet on a contract," providing similar functionality to a traditional wallet with full ownership.
Creator VS Syncer: Users can share their Syncfolios with others. In that case, 'Creator’ refers to the owner of a Syncfolio, while a 'Syncer' is someone who syncs with (= joins) the Creator’s Syncfolio.
B) Syncfolio overview
B-1) What is a Syncfolio?
Syncfolios constitute the main technical component of the Sync.fun ecosystem.
A Syncfolio is a portfolio that stores tokens, similar to a typical user wallet, but it is managed by a program on the solana blockchain. Users move tokens between their Syncfolio and wallet and can configure the Syncfolio to reallocate itself automatically or perform trades.
The key difference between a standard user wallet and a Syncfolio is that the latter can be shared with other users, enabling them to copy the user’s trades and wallet composition.
Essentially, a Syncfolio is a “shareable wallet on a contract”.
It behaves very similarly to a traditional wallet and you have full ownership over it.
Sync.fun does not operate directly on your wallet for safety and convenience reasons.
Here are some examples:
Safety
Operating directly within the user's wallet would require granting full approval for Sync.fun bots to access and use their tokens in certain cases, such as during asset reallocation.
Instead, by storing assets in a program, we can set clear conditions for how user tokens are used, ensuring that users retain full ownership and control over their assets.
Convenience
Operating directly within the user’s wallet would require users to manually approve Sync.fun trading bots for every new token they add to their Syncfolio, each time they add a token.
By storing assets in a program, this approval process is eliminated. Instead, whitelists are introduced, allowing users to specify which tokens the Sync.fun trading bots are permitted to use, streamlining the process.
B-2) Access
The Sync.fun team prioritizes the security of Syncfolio access, as it directly relates to user assets. Syncfolios are programs fully owned by the users who create them, with access granted only to specific Sync.fun bots, which are easy to revoke and strictly limited.
Ownership: Syncfolios are entirely owned by the users who create them, not by the Sync.fun team. There are no owner functions available to the Sync.fun team that would allow access to user assets, approval of tokens, or updates to user whitelists.
Trading bots: The only external entities that can interact with Syncfolios are Sync.fun trading bots. These bots enable features like automatic asset reallocation and execution of failsafes.
Since these bots directly interact with user assets, their permissions are extremely restricted:
Bots only have access to a user’s Syncfolio if the user explicitly grants it. This access can be revoked at any time by the Syncfolio Creator.
Bots can only swap user assets for other assets and cannot perform any other operations, such as transfers.
The Syncfolio itself is the sole recipient of any swaps performed by the bots.
Each Syncfolio is automatically assigned a whitelist upon creation. Bots cannot trade any tokens outside this whitelist, and only the user can update it, preventing the bots from trading malicious tokens unless the user specifically allows it.
B-3) Allocations
Syncfolios utilize allocations to track the proportion of each asset held by users. This is required for enabling both reallocation and the sharing of Syncfolios.
Current allocation: The real-time distribution of assets, reflecting their current market values.
Desired allocation: The target distribution that the Syncfolio aims to maintain. This becomes relevant only if a reallocation policy is active.
Here is an example Syncfolio allocation:
Desired Allocation: 70% $SOL / 20% $USDT / 10% $USDC
Current Allocation: 69.24% $SOL / 20.65% $USDT / 10.11% $USDC
In this example, the user intends to have 70% of their portfolio in $SOL, 20% in $USDT, and 10% in $USDC. However, due to slight market fluctuations or other factors, the current allocation is 69.24% $SOL, $20.65% USDT, and 10.11% $USDC. The Syncfolio's reallocation mechanism would aim to adjust these proportions back to the desired allocation if reallocation is enabled.
When a user joins a Creator’s Syncfolio, their deposited assets are automatically swapped to align with:
The Syncfolio’s current allocation if reallocation is disabled;
The Syncfolio’s desired allocation if reallocation is enabled.
For more details on joining, see the “Joining & exiting” section below.
B-4) Swapping
Most operations performed by and within Syncfolios involve token swaps. For security reasons, only manual swaps are enabled by default. Users must provide explicit consent for any automatic swaps to be executed.
Common swap options, such as setting slippage and deadlines, are available. However, for safety, the recipient cannot be customized and is always set to the Syncfolio itself.
Swap types
Manual swaps: These operate similarly to swaps in a typical user wallet. Users can manually swap specific token amounts or trade by percentage (e.g., swap 20 $USDT or trade 20% of the Syncfolio's $USDT).
Reallocations: If reallocation is enabled, Sync.fun trading bots can automatically trigger swaps when the Syncfolio's current allocation deviates significantly from its desired allocation. The frequency and conditions for these reallocations are fully customizable by the Syncfolio Creator. Reallocations can also be triggered manually.
Failsafes: In a future version of Sync.fun, users will be able to set up failsafes. These are automated swaps (for Creators) or withdrawal orders (for syncers) that trigger when specific conditions are met (e.g., the Syncfolio loses 30% of its value within 48 hours).
DEXes
To facilitate token swaps within Syncfolios, Sync.fun leverages Jupiter, a leading liquidity aggregator on Solana.
Rather than manually integrating with multiple DEXes like Raydium, Orca, and Serum, Jupiter handles this complexity by automatically finding the best swap routes across these platforms. This ensures that users benefit from the most favorable prices while simplifying the underlying processes managed by Syncfolios significantly.
Upgradability
Integrating with Jupiter eliminates the need for continuous program upgrades to support new DEXes or liquidity pools, which would be tedious to perform while maintaining full Creator ownership of Syncfolios.
B-5) Reallocating
After creating a Syncfolio, users have the option to enable Sync.fun bots to perform regular reallocations based on customizable parameters. Alternatively, users can execute reallocations manually by clicking a button that initiates the necessary swaps without involving bots.
Automatic reallocations are entirely optional and can be turned on or off at any time. Enabling this feature requires users to grant explicit permission for Sync.fun bots to perform swaps using their Syncfolio's tokens.
Setting up automatic reallocations
To enable automatic regular reallocations, users need to configure the following:
Desired allocation: The target distribution of assets that the reallocation system will strive to maintain within the Syncfolio.
Reallocation policy: This policy outlines how the reallocation process should operate and includes:
Check frequency: Determines how often the reallocation bots should assess the Syncfolio to decide if a reallocation is necessary.
Slippage tolerance: Sets the acceptable percentage difference between the expected and actual execution prices during swaps.
Reallocation threshold: Specifies the percentage deviation between the current and desired allocations that will trigger a reallocation. There are two main types of thresholds:
Fixed deviation: Users specify a fixed percentage (e.g., 5%) as the threshold. If the difference between the current allocation and the target exceeds this percentage, a reallocation is triggered. This approach is simple but may not scale well across assets with significantly different target allocations.
Proportional deviation: The reallocation threshold is based on a percentage of the target allocation itself. For example, if a user sets a 5% proportional deviation, then for an asset with a 5% target allocation, the acceptable deviation range would be 0.25% (5% * 5%). For an asset with a 95% target, the range would be 4.75% (95% * 5%). This approach ensures that assets with different target allocations are handled more equitably.
Token exclusions: Allows users to exclude certain tokens from the reallocation process as needed.
Both the desired allocation and reallocation policy are flexible and can be updated at any time to adapt to changing market conditions or user preferences.
Considerations for fees
DEX fees: Frequent reallocations, such as multiple times per day, are possible but can lead to increased DEX fees, potentially diluting the Syncfolio's overall value. Users should balance the frequency of reallocations with the associated costs to optimize performance.
Gas fees: Thanks to Solana's low gas fees, regular reallocations remain cost-effective compared to other blockchains like Ethereum. For most users, gas fees are minimal and are typically outweighed by DEX fees when considering the overall cost of reallocations.
Manual trading compatibility
Users can continue to perform manual trades while the automatic reallocation system is active.
When a user conducts a manual swap:
Customization: This automatic update feature can be enabled or disabled based on individual user preference, providing flexibility in how manual trades interact with the reallocation system.
Automatic update of desired allocation: The desired allocation can be configured to automatically adjust and reflect the outcomes of the manual trade.
B-6) Sharing
One of the key features of Syncfolios is their ability to be easily shared with others, enabling them to replicate the trades and/or asset allocations of the Syncfolio Creator. Like automatic reallocations, sharing is optional.
Sync.fun maintains a directory of active shared Syncfolios, which is accessible through the app. This directory can be browsed based on various criteria, including the number of Syncers, total TVL (Total Value Locked), performance over time, safety modes, and more. Syncfolio Creators have the option to hide their shared Syncfolio from this list by setting it as unlisted or private. However, it's important to note that all Syncfolios are still visible on the blockchain.
Sharing a Syncfolio can be enabled with a simple button click. Once enabled, Creators are provided with a join link that they can share with potential Syncers, allowing them to view and join the Syncfolio.
When sharing is enabled, the Creator must set a sharing policy that includes the following options:
Visibility: Determines who can view the Syncfolio:
Public: The Syncfolio is listed in Sync.fun’s public directory, and anyone with the join link can view it.
Unlisted: The Syncfolio is hidden from the public directory, but anyone with the join link can still view it.
Private: The Syncfolio is hidden from the public directory, and only Syncers whose wallet addresses are whitelisted by the Creator can join.
Creator fees: Decides whether Syncers should pay the Creator for joining the Syncfolio, and if so, how (detailed further in the "Creator fees" section).
Safety mode: Specifies the safety approach the Syncfolio will follow (detailed further in the "Safety modes" section):
“Safe mode” maximizes Syncer safety at the cost of Creator freedom;
“Freedom mode” maximizes Creator freedom at the cost of Syncer safety;
“Separated mode” enables both Syncer safety and Creator freedom but is more complex. This mode will become available in a future version of Sync.fun.
While the visibility of a Syncfolio can be adjusted at any time, the choice of safety mode is integral to the Syncfolio's architecture and cannot be changed later. The ability to modify Creator fees depends on their type, as outlined in the "Creator fees" section.
Sharing can be disabled at any time, preventing any new deposits into the Syncfolio.
B-7) Joining & Exiting
The joining and exiting processes depend significantly on the safety mode chosen by the syncfolio Creator. In safe and freedom modes, syncing is managed through Syncfolio shares, while in separated mode, Syncers create their own Syncfolios and link them to the Creator's.
For Syncfolio Creators
Regardless of the safety mode, Syncfolio Creators can deposit or withdraw assets directly from their Syncfolio. However, they do not have access to the assets of their Syncers.
Safe & freedom modes
In safe or freedom mode, Syncers can join a Syncfolio by depositing any token that has been whitelisted by the Creator. These tokens are then swapped to align with the Syncfolio’s allocation (whether current or desired, as detailed in the “Allocations” section above), and the resulting tokens are added to the Syncfolio.
In return for their deposit, Syncers receive a share of the Creator’s portfolio, which they can redeem for tokens at any time. When withdrawing, they can choose to swap their share’s tokens for a specific token or withdraw the tokens as they are.
This approach consolidates the assets of both the Creator and the relevant Syncers in a single account, greatly simplifying the operations available on Sync.fun.
Future versions of Sync.fun may introduce the option to swap assets based on which assets are missing from the current allocation. This would reduce the number of swaps needed and help lower the frequency of costly reallocations.
Separated mode (available in a future version of Sync.fun)
Separated mode differs from the others as it does not involve Syncer shares, and no funds are sent to the Creator’s Syncfolio. Instead, Syncers create their own Syncfolio and link it to the Creator’s, allowing each Syncer to maintain their own token whitelist.
In this mode, Syncers deposit and withdraw assets from their Syncfolio just as Creators do.
Syncers can stop syncing with the Creator’s Syncfolio at any time, which will halt the tracking of the Creator's trades. They can then either withdraw their assets, sync with another Creator, or manage their assets independently.
B-8) History and Performance
Sync.fun continuously monitors and records the performance of each Syncfolio, ensuring users have access to detailed historical data and analytics. This performance data is visually represented through graphs on each active Syncfolio’s page, allowing users to easily track the growth, changes, and overall success of their investments over time.
The performance metrics include:
Historical returns: Sync.fun tracks and displays the returns of each Syncfolio over various time frames, such as daily, weekly, monthly, and yearly performance. This helps users assess the Syncfolio's profitability and growth potential.
Allocation changes: The history of reallocation events, including any manual or automated reallocations, is logged and displayed. Users can see how the Syncfolio’s asset composition has evolved and how these changes have impacted overall performance.
Comparison tools: Users can compare the performance of their Syncfolio against benchmarks or other popular Syncfolios, enabling them to make informed decisions based on relative performance.
Impact of fees: The system also considers the effect of DEX fees, gas fees, and any applicable Creator fees, providing a clear picture of net performance after costs are accounted for.
Transaction history: A detailed log of all transactions, including deposits, withdrawals, swaps, and reallocations, is accessible. This transparency helps users understand the exact actions taken within their Syncfolio and their outcomes.
Sync.fun ensures that all performance data is easily accessible and up-to-date, allowing Creators to optimize their strategies and attract more Syncers, while Syncers can make informed decisions about which Syncfolios to join or continue following based on transparent and comprehensive performance insights.
B-9) Multiple Syncfolios
While it is possible for users to create multiple Syncfolios or join multiple Syncfolios within the Sync.fun ecosystem, this feature will only become available on the front-end in a future version of Sync.fun.
At first, users will be limited to either owning one Syncfolio or joining one Syncfolio.
C) Fees
C-1) Creator fees
Creators can charge a fee to Syncers when they join the Creator’s portfolio, referred to as “Creator fees.” They can select one of the following options:
One-time fixed fee: Syncers pay a fixed amount in a certain token on their first deposit to the Creator’s Syncfolio (e.g., 50 $USDT when joining). This fee does not apply to subsequent deposits. The amount and token can be set by the Creator.
Percentage of the amount deposited: Syncers pay a percentage of their deposit every time they deposit tokens (e.g., 0.1% of the deposited amount). The exact value is chosen by the Creator. The fee will be converted into a token chosen by the Creator.
Subscription fee (available in a future version): Syncers pay upfront for a specified number of months. The subscription fee is based on the monthly amount set by the Creator, and Syncers can pay for multiple months at once. If the subscription period expires without renewal, the syncing automatically ends.
Performance fee based on profits at withdrawal (available in a future version): When a Syncer withdraws, the overall profit is calculated in comparison to a token chosen by the Creator, and a percentage of the profit is taken (e.g., 10% on profits compared to $SOL’s performance over the same period). Partial withdrawals will only apply the fee to the relevant amount.
Creators can add, increase, decrease, remove, or change the type of their fees at any time.
However, to protect Syncers, there are limitations on updating performance and subscription fees after they have been set: they cannot be added or increased once sharing has been enabled. These fees can still be removed, disabled, or replaced with entry fees.
For technical reasons, it is not possible to update the token used to measure performance fees once it has been set.
Creator fees are distributed as follows:
90% is swaped to $SYNC and is sent to the Creator.
5% is swapped to $SYNC and burned.
5% is swapped to $USDT and allocated to the Sync.fun team to support ecosystem growth and ongoing platform development.
C-2) Protocol fees
While Syncfolios exist entirely on the blockchain, Sync.fun manages several important operations, including data tracking, bot management, and server hosting. To ensure sustainability, Sync.fun charges a protocol fee designed to cover various technical costs, such as:
App hosting: The app is hosted on external servers, which incur ongoing costs to ensure reliable access and performance.
Bot operations: Running bots requires computational resources, which translates into ongoing costs. These bots are essential for tasks like automatic reallocations, failsafe processing, and tracking the value of Syncfolios over time.
Transaction costs: Bots use wallets to create and execute transactions on the blockchain, each of which incurs a fee in SOL or other tokens.
Data storage: A database is required to store extensive amounts of data related to Syncfolios, user interactions, and historical performance, which adds to the costs.
Domain maintenance: Maintaining the necessary domains for Sync.fun involves regular expenses to keep the service accessible and secure.
Development and maintenance: As with any technical system, things will occasionally break or require updates, necessitating developer time and resources to resolve issues and implement improvements.
The two primary expenses are expected to be bot operations and database management.
Protocol fees are charged at the time of Syncfolio creation, in the form of a one-time fixed fee in $USDT for simplicity. Users can pay with any token, which is automatically converted to $USDT after payment and sent to a dedicated wallet. The fee amount is based on an estimation of the costs involved in running and maintaining a Syncfolio.
In separated safety mode, Syncers are required to create their own Syncfolios, and they will be charged protocol fees accordingly. In other safety modes, Syncers do not pay any protocol fees.
These fees may evolve over time in response to changes in server costs, technical updates, and the growth of the user base.
D) Safety
D-1) Safety philosophy
Using any crypto product comes with inherent risks. While Sync.fun takes extensive measures to minimize these risks, there is always the potential to lose funds. However, Sync.fun prioritizes safety above all else. Several safeguards have been implemented to ensure that users' assets remain as secure as possible, even in the unlikely event of a severe hack:
Limited access: Sync.fun has very limited access to users' assets. The trading bots are permitted to swap assets, but only if both assets are on the Creator's personal whitelist. Sync.fun cannot modify the Syncfolio in any other way, nor can it update the Creator's whitelist.
Ownership and control: Syncfolios are entirely owned and controlled by the users. Even if Sync.fun were to cease operations, users would still retain the ability to withdraw their assets safely.
Secure slippage handling: Slippage is carefully managed on the contract side to prevent any malicious actors from exploiting the trading bots to execute sandwich attacks.
Despite these precautions, it’s important to acknowledge that some risks remain:
DEX fee dilution: A malicious actor with access to the trading bots could theoretically execute numerous trades, repeatedly buying and selling the same tokens, which could dilute their value through excessive DEX fees. Although the attacker wouldn’t profit financially from these actions, the repeated transactions would deplete the assets due to the continuous incurring of fees.
Market manipulation attempts: An attacker might attempt to manipulate the market by forcing all users to buy or sell a specific token. However, this would be extremely complex to execute and is unlikely to yield significant gains for the attacker. This is because token whitelists are stored on the blockchain, meaning the attacker would be limited to manipulating tokens that are already on all users' whitelists. These tokens typically have high liquidity, making it difficult to significantly impact their price or volume through coordinated manipulation.
It's crucial to understand that Sync.fun is still an experimental product. As with any emerging technology, particularly in the fast-evolving world of decentralized finance (DeFi), there are inherent risks that come with using the platform. Despite rigorous testing and continuous improvements, there may still be unforeseen vulnerabilities or issues that could affect the performance and security of the service.
Given the experimental nature of Sync.fun, users must exercise caution. While the platform aims to provide a secure environment, it cannot guarantee absolute protection from all potential risks. Sync.fun is not liable for any losses incurred while using the platform, including but not limited to losses due to market fluctuations, technical failures, or malicious attacks.
Therefore, users are strongly advised to only invest what they can afford to lose. This principle is fundamental in any high-risk investment, particularly in the crypto space, where market volatility, security concerns, and the newness of many products can lead to significant and rapid changes in asset value.
The primary risks associated with using Sync.fun are similar to those faced when using a personal wallet:
Private key security: Syncfolios are linked to the user's wallet address. If access to the wallet is lost, the assets cannot be recovered and will be lost forever.
Token safety: Users should always do their own research (DYOR) before trading tokens. Trading unsafe tokens in a Syncfolio carries similar risks as trading them directly in a wallet.
Caution in freedom mode: Syncers should be mindful of whom they follow in freedom mode. A malicious Syncfolio Creator could introduce harmful tokens to their Syncfolio, potentially compromising the Syncer’s assets.
Another key component of Sync.fun’s safety philosophy is the emphasis on user choice and control. The platform is not just about blindly following a Creator's trades—although this is an option in freedom mode. Sync.fun provides features such as whitelists and stop-loss mechanisms, allowing users to choose the level of risk they are comfortable with.
While Sync.fun strives to provide the safest experience possible, it is important to remember that it is a work in progress. Users should stay informed, exercise caution, and only invest within their risk tolerance.
D-2) Safety modes
Overview
Syncfolios offer different safety modes that can be selected when enabling Syncfolio sharing. These modes are necessary due to the technical challenge of providing a "perfect" solution for following another person's trades. Sync.fun addresses this with three distinct safety modes, allowing users to select the one that aligns with their risk tolerance and preferences. Once a safety mode is chosen, it becomes immutable, and Creators are informed of this restriction upfront.
Three safety modes
Safe Mode In this mode, Creators are restricted to trading tokens listed on one of the predefined whitelists (see the next section). They are not permitted to modify or update these whitelists. This setup maximizes safety for Syncers, as it ensures that only tokens from trusted sources are traded.
Separated Mode Creators can trade any token of their choosing, but Syncers maintain control by using their own personal whitelists. Each Syncer creates a Syncfolio linked to the Creator's, allowing them to control which tokens are permitted. This setup balances freedom for the Creator with an added layer of safety for Syncers.
Freedom Mode Creators are free to trade any token without restrictions or safety checks. Syncers send their funds directly to the Creator's Syncfolio, fully trusting the Creator's judgment. This mode offers the highest degree of freedom but comes with inherent risks, as there are no safeguards in place to protect against malicious trades.
Key Characteristics of Each Mode
Each safety mode provides only two of the following three characteristics:
Freedom Freedom refers to the Creator's ability to trade without restrictions, such as token whitelists or limits. A high degree of freedom is particularly beneficial for those trading low-market cap or high-risk tokens. However, this also increases the risk for Syncers, as malicious tokens could be traded, putting their assets in jeopardy.
Safe Mode: Low freedom. Creators are limited to trading only from a predefined whitelist. Some whitelists include more tokens than others.
Separated Mode: Provides freedom for the Creator, but Syncers must actively manage their own whitelists.
Freedom Mode: Offers full freedom, but at the cost of safety and security for Syncers.
Simplicity Simplicity is defined by how hands-off the process is for Syncers. In simple Syncfolios, Syncers send funds to the Creator’s Syncfolio and receive a share of the Creator's trades without needing to intervene. This minimizes gas fees and reduces complexity, but limits the Syncers’ control over the tokens being traded.
Safe Mode: Keeps the process simple, with centralized control and no need for Syncers to manage whitelists.
Separated Mode: Adds complexity, as Syncers must actively maintain their own whitelists.
Freedom Mode: Maximizes simplicity, as there are no whitelists or additional controls for Syncers to manage.
Safety Safety is the degree to which Syncers are protected from malicious or risky trades. The less freedom the Creator has, the safer the Syncers are. Conversely, high freedom tends to reduce safety.
Safe Mode: Maximizes safety by restricting the Creator to trading only from the main whitelists.
Separated Mode: Offers enhanced safety by giving Syncers the ability to create and maintain their own whitelists.
Freedom Mode: Sacrifices safety for simplicity and freedom. Syncers must fully trust the Creator, as there are no safeguards against malicious trading.
Important Considerations
Choosing Freedom Mode is not recommended unless Syncers have full trust in the Creator, as this mode carries significant risk. Malicious trades could result in the loss of Syncer assets, and the Sync.fun team assumes no responsibility for such losses.
Additionally, it is important to note that all Syncfolio types, regardless of safety mode, are secure from interference by the Sync.fun team. The Sync.fun trading bots are only authorized to execute trades based on tokens personally whitelisted by the Creator, even in Freedom Mode. Thus, user assets are protected from being misused by the platform itself.
D-3) Token whitelists
An essential part of ensuring safety is maintaining transparency regarding which tokens can be traded by Creators. Some users may be concerned that malicious Creators could exploit their funds through schemes such as pump-and-dump or insider trading to profit at the expense of their Syncers. To address this, Sync.fun implements various types of whitelists that Creators and Syncers can use to control which tokens are traded within their Syncfolios.
Main Whitelists
When creating a Syncfolio, Creators can choose a whitelist from one of the available main whitelists. Main whitelists include the following types:
Official Whitelists: Maintained by the Sync.fun team, these trusted token whitelists are designed to provide a baseline of safety. They are used in safe mode, acting as a list of tokens that the Creator is allowed to trade. This setup grants the Creator a certain level of freedom while ensuring that Syncers are protected from unsafe tokens. However, it is important to note that the Sync.fun team is not responsible for any losses incurred from the use of an official whitelist.
Community whitelists (V2): In a future version, members of the Sync.fun community will be able to create and share their own whitelists. These whitelists can be used and rated by other community members, earning a trustworthiness score similar to that of Syncfolios. This feature will add a layer of community-driven safety and flexibility.
External / DEX whitelists: These include all tokens listed on official decentralized exchanges (DEXs) such as Raydium, as well as platforms like CoinGecko or CoinMarketCap. These whitelists provide additional options for users who want to trust tokens that are broadly recognized and traded on established platforms.
User Whitelists
User whitelists are specific to individuals and can be categorized into two types:
Creator whitelists: Creators can create their own whitelists and make them visible to Syncers. This transparency allows potential Syncers to conduct their own research before deciding to join a Syncfolio. In separated mode, these whitelists allow Creators to trade tokens freely, but they only impact Syncers if the Syncer has approved the same tokens in their own whitelist.
Syncer whitelists: Syncers can create their own whitelists and use them in separated mode. This allows them to control which trades are executed in their Syncfolio, adding an extra layer of security. If a Creator trades a token that is not included in the Syncer’s whitelist, the trade will be blocked on the Syncer’s side, preventing any unauthorized transactions.
In freedom mode, the Creator’s whitelist automatically includes all tokens they choose to trade. Even if a hacker were to gain control of the Sync.fun platform, they would not be able to trade any tokens that the Creator has not manually added to their whitelist, thereby protecting the Creator’s and Syncers' assets.
D-4) Failsafe / stop-loss mechanisms
In a future version of Sync.fun, failsafe mechanisms will be introduced to provide an additional layer of security for Syncers. These mechanisms will be implemented through failsafe bots that operate on a regular basis, continuously monitoring market conditions and user wallets to prevent significant losses.
Syncers will have the ability to set up custom failsafe rules via the front-end. The primary example of such a rule is a stop-loss mechanism where assets are automatically withdrawn if they lose a certain percentage (e.g., 30%) of their value. This feature is designed to protect users from extreme market downturns or potential rug pulls.
Additionally, Creators may also set failsafe rules for their own Syncfolios. For instance, a Creator could configure a failsafe that converts assets to $USDT if their wallet's value drops by more than 20% in a day, or if a specific token experiences a significant loss in value.
Implementing these failsafe mechanisms requires intensive monitoring and real-time data processing to ensure prompt responses to market changes. While this adds complexity and demands significant server resources, it greatly enhances the platform's ability to protect users' assets by providing timely intervention during critical market events.
4 - Business Model & Token
A) Sync.fun Business Model
Sync.fun business model is built to ensure long-term sustainability while aligning with the success of our users. The core of this model revolves around two types of fees: protocol fees and Creator fees.
These fees contribute to our platform stability and its ongoing development.
A-1) Creator Fees
Sync.fun allows Creators to monetize their Syncfolios by charging fees to Syncers. These fees, known as Creator fees, are determined by the Creators and can vary depending on their chosen fee structure (e.g., fixed, percentage-based, or performance-based). The fee revenue generated by Creators is then allocated in the following way:
90% is swapped into $SYNC and sent directly to the Creator as their revenue for providing the Syncfolio.
5% is swapped into $SYNC and burned, contributing to the platform's deflationary tokenomics by reducing the circulating supply of $SYNC.
5% is swapped into $USDT and allocated to the Sync.fun team to support ongoing platform development, marketing, and ecosystem growth initiatives.
This fee structure ensures that both Creators and the platform benefit from Syncfolio activity while maintaining a sustainable economic model for the platform.
The following diagram represents how Creator fees are distributed within the Sync.fun platform:
A-2) Protocol Fees
In addition to Creator fees, Protocol fees are essential to ensure the smooth operation and sustainability of the Sync.fun platform. These fees are designed to cover the costs of running the protocol, including infrastructure, maintenance, and development, while scaling based on usage to maintain efficiency.
Fee Structure
Every Syncfolio Creator is required to pay a one-time fixed protocol fee when they create their Syncfolio. The fee amount is based on an estimation of the costs involved in running and maintaining a Syncfolio.
Initial Fee: A fixed fee is charged at the time of Syncfolio creation. The amount reflects the projected usage of platform resources, such as server capacity and bot operations. This ensures that Sync.fun can handle the technical demands of each Syncfolio.
Fees are paid using tokens from the Syncfolio's whitelist and automatically converted into $USDT for simplicity and liquidity.
B) $SYNC Token
The $SYNC token is central to Sync.fun's business model, serving as the primary asset to reward Creators. Most platform activities, including Syncfolio participation, Creator earnings, and advertisements, are transacted using $SYNC.
Utility of $SYNC Token
The $SYNC token boasts numerous utilities, including:
Creator fees are converted to $SYNC: Creator fees, are automatically converted into $SYNC, creating ongoing demand for the token and integrating it into every transaction on the platform.
Creator Revenue: Creators are paid in $SYNC, ensuring that all revenue generated through Syncfolios, is aligned with the platform’s growth. This payment structure reinforces $SYNC’s central role in rewarding creators.
Advertisement: Creators who wish to promote their Syncfolios within the platform must pay for advertisements using $SYNC. This integration further strengthens the token’s utility by ensuring that any form of promotion on Sync.fun is conducted via $SYNC.
Premium features: Sync.fun offers custom premium features, such as advanced Syncfolio tools, analytics, and upcoming functionalities, which will only be accessible through $SYNC. This exclusive access increases the token’s role in providing added value to users.
C) Burn Mechanism
A defining feature of the Sync.fun ecosystem is its burn mechanism. This process directly connects platform activity to token scarcity, ensuring that as platform usage grows, the availability of $SYNC decreases over time.
How It Works: 5% of all Creator fees generated across the platform are allocated to buying $SYNC from the open market. Once purchased, these tokens are permanently burned, removing them from circulation entirely. This process introduces a scarcity dynamic, where the reduced token supply benefits the remaining $SYNC in circulation, creating stronger demand as platform activity increases.
Impact on $SYNC Supply: As more Syncfolios are created and more Syncers join, Creator fees grow. With every fee cycle, 5% of these fees are consistently burned, leading to a continual reduction in the total $SYNC supply. This ensures that the token supply is aligned with Sync.fun's growth, with higher levels of platform engagement translating into more frequent burns and a gradually shrinking circulating supply.
Alignment with Platform Growth: The buy-and-burn mechanism scales naturally with the growth of Sync.fun. As the platform expands and more Creators set up Syncfolios, the volume of Creator fees increases, leading to more $SYNC being burned.
D) $SYNC Distribution
The following distribution percentages represent the current allocation plan but may be subject to change based on platform needs and future developments:
20% allocated during the Initial Coin Offering (ICO)
70% dedicated to liquidity pools to ensure smooth and stable trading
5% reserved for rewarding and engaging the community
5% allocated to the team for marketing & CEX listing
Conclusion
Sync.fun introduces a unique approach to SocialFi, built on transparency, simplicity, and a smart business model. By aligning user incentives and ensuring every action is visible, Sync.fun creates a fair and trustworthy environment where expertise can truly shine.
What sets Sync.fun apart is its ability to offer a fun and straightforward way for Creators to showcase their skills, with Syncers able to follow strategies with confidence. In a landscape where transparency is often lacking, Sync.fun’s model stands out by requiring creators to back up their claims through verifiable Syncfolios.
As Sync.fun expands, it has the potential to set a new standard for trust and transparency in Web3, positioning itself as a leader in the SocialFi space.
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