How Symbiosis Finance Works: The First Multichain AMM

One of the biggest challenges in the crypto sector is switching liquidity from one blockchain to another, with ease. What solutions are being adopted today?

1) Exchange: here it should be emphasized that some tokens cannot be collected on a given chains. If I wanted to move USDC (Fantom format) from BINANCE I couldn't. Only thing I could do is take Fantom (native chain) and then swap it on an AMM

2) The other alternative is to use bridges. However, I remember that bridges allow you to wrap tokens. If I transfer USDC (BSC) to Fantom I will have USDC (FTM). As a next step, I would still have to use an AMM to convert USDC into the token I would like (USDT for example)!

Apps such as Symbiosis Finance try to solve this problem. Basically it is an AMM Multichain (EVM and not EVM network). Symbiosis is similar to Uniswap, PancakeSwap, QuickSwap, TerraSwap, Raydium, etc but unlike these AMM it allows you to swap between different chains. Symbiosis's routing mechanism is similar to 1INCH (Ethereum / BSC) and Jupiter Aggregator (Solana) but these two "price aggregators" do not allow cross chain swap. With Symbiosis, for example, I could make a trade between ETH (Ethereum Blockchain) and BNB (Binance Smart Chain):

Other possibilities that Symbiosis offers are:

-Provide cross chain liquidity with a single interface and manage it with one click

-Advanced Farming (Cross Chain Farming)

Here you can try the testnet: Symbiosis Finance (Testnet)

You must use Rinkeby Network, you can ask for some ETH in this faucet: Rinkeby (Faucet)

To test liquidity pools, the testnets are: Rinkeby (Ethereum), Fuji (Avalanche) and Mumbai (Polygon).

What is the benefit of running a multi-chain swap? Time first. If you have to use an exchange or bridge it will take at least 10 minutes. Sometimes even more: it depends on how many steps you have to do. Today, through a bridge, you can easily switch between EVM chains (Ethereum, BSC, Polygon, Avalanche, Cronos Chain, Fantom, etc) but you can transfer liquidity X for liquidity X (USDTeth for USDTavax). More complex chains such as Terra and Solana are compatible with the EVM only through the Wormhhole but you must always perform more steps. I transfer X and get the "wrapped" token. After about 10 minutes, I have to go to an AMM of the chains where I have transferred liquidity and perform another swap. Instead with Symbiosis you can do it all with just one click: swap USDC (eth) for USDT (avax) for example. Reducing waiting times also decreases volatility (which as we know is the enemy of every trader). Swaps are performed through stablecoin pools using Uniswap, Pancakeswap, Quickswap, etc. If you are trading ETH (Ethereum blockchain) for BNB (Binance Chain), swaps will take place in different stablecoins and then finally in . This allows you to get the best possible price.

Technically you will have two transactions:

1) Chain of origin (ETH ??USDC)

-Minting operation (for example USDC ??sUSDC ??BUSD)

2) Destination chain (BUSD ??BNB)

The user obviously will not notice anything because the swap lasts only a few seconds and will take place in a single transaction!

That said, the pools will also create an arbitrage opportunity for traders. The biggest challenge will be the introduction of Solana, Terra and Polkadot which are very complex chains.

Network security is maintained through the SIS governance token (staking on the relayer network node that manages the exchange volume of the node to process swaps passing through stablecoin. The competitor DeBridge instead uses only the nodes that pass through the Chainlink oracle, instead Symbiosis allows you to support everything).

It is possible to connect to the platform using different wallets, on all Metamask, Trust Wallet and Coin98.

What are the advantages that this protocol intends to introduce?

-Multichain exchanges (to date only Thorchain is doing such a thing. The difference, however, is that Symbiosis integrates directly with AMMs. Thorchain is a more complex and "risky" project, since they have already undergone several exploits)

-Decrease slippage

-Decrease the volatility of traded pairs (due to the great speed of switching from one chain to another)

-Reduce the impermanent loss (use of stablecoin pools to make trades; a little bit what Curve did originally)

-Unlike exchanges, the resources will always remain on your wallet (not custodial)

-Use of a single gas commission (if you use the wormhole or any bridge you will pay twice the gas. If you transfer from Polygon to Solana you will pay the gas in Matic and then in Solana)

-Possibility to use the token you are trading as gas (if you trade USDC for Dai on Uniswap, you will always need the native token of the platform: in this case ETH)

-Facilitate the creation of multichain dapps using software development kits (SDK)

This project is so interesting that it also prompted Binance Labs to make a strategic investment:

Contacts:

Symbiosis Fi (Twitter)

Symbiosis Fi (Telegram)

Are you interested in ways to earn crypto bonus? Check it out here: Some Sites To Earn Crypto Bonus (Old & New)