Everything You Should Know About Symbiosis Finance
The digital token ecosystem is growing daily. New platform with different merits to offer its users. But never satisfied users' cross-chain exchange until the emergence of Symbiosis finance. It was invented by the Avalanche Asia Star Fund (AVATAR) and supported the development of its network.
Symbousis Finance: Making Uniswapping Easier For Users
Symbiosis finance is a Defi cross-chains liquidity protocol that allows users to remain the owner of its fund while exchanging on other blockchain assets. Its target is to resolve problems facing liquidity differences across the blockchain networks and poor user experience while working with Web3 and Defi thrift.
The Unique Features Of Symbiosis
These are some of the requirements users are looking for, which Symbiosis protocol has made possible.
- It is easy to swap using the platform. No extra wallet is needed, just like other Defi assets always demand. And it does not waste time during this process.
- It is not regulated by anybody, so it is fully decentralized. You are not stopped by anything while accessing it or swapping any token.
- It accesses every blockchain that gets enough market attention. This is the ultimate aim of Symbiosis Finance to acquire all networks in one shell. These will contribute to shitcoin holders when they are fully present in the market and easily swap.
- The user fund is safe. No one has access to your funds except the user.
- There is limitless multi-chain liquidity. Users can access many tokens while swapping at the best price rate.
How Symbiosis Protocol Works
Symbiosis uses the two types of wrapped tokens for swap, making it a more appreciated means for exchanging. They can be issued on the blockchain or another blockchain. It works with both forms of bound tokens.
- The wrapped token minted on a similar ecosystem is used to operate aboriginal cryptocurrency. And there is no generic name for this form.
- The bound token drilled on another blockchain is used to control multi-chain exchange. It is called sToken (Synthetictoken); sBUSD, sUSDC, sUSDT, sBUSD, sGALA etc..
The symbiosis protocol ensures that each wrapped token and sToken is backed in a ratio of 1:1 by the native asset locked in a smart contract.
Tokens Supported By Symbiosis Protocol: Avalanche, polygon, BINANCE Smartchain, and Ethereum. They are the blockchains supported by the symbiosis protocol on Mainnet. While blockchain supported by its Testnet is are; OEC HUOBI ECO CHAIN, which is interchangeable with other native blockchains.
What Is Symbiosis Liquidity Pool With sTokens
This means Symbiosis protocol helps in exchange of synthesis tokens for its users. It works with a particular stablecoin on any approved ecosystem or blockchain. For instance, USDT on Ethereum and BTCB on Binance Smart Chain. Assuming a user wants to do a cross-chain exchange and the asset at hand differs from the stablecoin selected for the blockchain, the token is swapped to the stablecoin first.
Symbiosis protocol has one liquidity pool for every ecosystem with the lowest gas fee for pairing. And it contains the stablecoin chosen for this blockchain and the wrapped indication of the stablecoin of another blockchain(sToken).
The Reasons Why There Is One Liquidity Pool With sToken is because of these two reasons:
- A single liquidity pool with complete liquidity is better than two liquidity pools with incomplete liquidity each.
- It includes lower gas fees, thereby lowering operating costs.
sToken is mainly used for specialized objectives, and end-users cannot sell. But can exchange for stablecoin on Symbiosis DEXes or become s liquidity providers.
How Symbiosis Interact With Users
Symbiosis allows user interaction with its interface to occur in three-phase, making it easy to work with.
These phases are;
- The front-end is the interface that gathers details regarding the token or coin on the blockchains itemized by the symbiosis protocol. And it builds the means for swapping tokens by helping users interact freely and send transactions to the blockchains.
- The multi-chain liquidity engine acts as the middleman. They are Smart Contracts adopted on every blockchain approved by the symbiosis administrator. Its work is on cross-chain liquidity pools and off-chain transfer mechanisms, permitting DEX contracts, MINT, and BridgeV2 contracts.
- The relayers web is a peer-to-peer (p2p) aid grid of Defi keepers. It gets information sent from the multi-chain engine on every approved blockchain to arrive at an agreement on each transaction. Afterwhich it signs and sends transactions to appropriate blockchains.
Steps it takes while swapping token as a user using the three phases for a higher gas fee to lower gas fee blockchain
The user (you) chooses assets to exchange; BNB to CAKE OR BUSD TO CAKE any token depending on your choice.
The front-ends find the path with the lowest fees for the exchange for you( user) and provide details for all types of stablecoin rate and their intermediary. If you agree with the details, depending on your choice. Then you sign ONE transaction. That will permit the symbiosis protocol to do all these intermediate swaps on your behalf. Afterwhich the front-end picks from them to continue the transaction to the native blockchain.
The Symbiosis protocol does swap on behalf of the user on the AMM with the best price. AMM must be selected within Step 1. These AMM are not present on the platform but do have the best for exchange.
The token is deposited to the Portal contract address.
The BridgeV2 contract issues an event informing listeners that there is a request to perform a cross-chain swap.
The relayers listen to events of cross-chain swap requests. It reaches a consensus for this particular event and signs a transaction. And send the token to the destination blockchain.
The Synthesis contract receives information about the request. Then mints sToken with the ratio 1:1 to the deposited in Step 4. The Symbiosis protocol swap on behalf of the user on AMM belonging to its platform.
Steps for a lower gas fee to a higher gas fee
The user selects assets to swap: CAKE to BUSD or USDT ERC20 to UNI.
The front-end finds the path with the lowest fees for this swap and provides the user with details: all intermediate exchange, charges associated with the intermediate trade, and gas fees. In this case, there are three intermediate swaps: CAKE > USDTD, SHIBA ERC20> sUSDC.
If the user approves the fees, the user signs ONE transaction. That allows the Symbiosis protocol to do all these intermediate swaps on behalf of the user.
The front-end sends the transaction to the origin blockchain (Binance Smart Chain in this case).
The Symbiosis protocol does the swap on behalf of the user on the AMM with the best price. The AMM is selected within Step 1.
The Symbiosis protocol will swap on behalf of the user on AMM (Automated market maker) belonging to its platform. As soon as sToken is deposited to the Symbiosis contract address, the Symbiosis contract burns sToken and informs BridgeV2 that there is a request to perform a cross-chain swap.
The Symbiosis contract informs the BridgeV2 Contract that there is a request to perform a cross-chain swap.
The BridgeV2 Contract issues an action informing the listeners that there is a request to complete a cross-chain exchange.
The relayers listen to events of cross-chain swap requests.
It reaches a consensus for this particular event and signs a transaction.
The relayers send the transaction to the destination blockchain (Ethereum in this case). The Portal contract receives information about the request.
The Portal contract releases token (blockchain) the ratio 1:1 to the sToken burnt in. As the swap is completed. The blockchain gets deposited to the user's addresses.
SIS token is the native crypto asset of Symbiosis Finance and serves as the major means of transactions in the platform. Holders of SIS token will be able to utilize it for staking purpose, governance etc.
SIS Token Is Listed And Tradable On Exchanges
Just like every other potential tokens, token has been listed and tradable on several top cex/dex exchanges. You can buy, sell and trade SIS token on exchanges likes;
Conclusion
Symbiosis finance has built a user-friendly exchange that answers the issue facing the liquidity pool. Uniswapping has been improved, and enhanced tokens listed on the market can be easily swapped using a symbiosis network. It will be an excellent suggestion to try it out too.
Follow Symbiosis official websites below to learn more about the project:
Whitepaper |
