For better comprehension of this Publish, First you have to understand what Wrapped Token and sToken means. Firstly! Wrapped token A wrapped token is a representation of one token through another. A wrapped token Represents the transfer of cryptocurrency token from One Blockchain to another with the Sole aim of Maintaining it’s Original value.
Unlike the original cryptocurrency, the wrapped token can be used, stored And kept externally away from it’s original wallet phrase with “hopes” by the user to restore or redeem it at when pleased. Wrapped token is a cryptocurrency token pegged to the value of another crypto. It is called a wrapped token because the original asset is put in a wrapper, another kind of digital vault that allows the wrapped version to be created on another blockchain.
Wrapped token is widely used to exchange
• One asset for another within one Blockchain
• An asset existing on one blockchain into an asset existing on another blockchain.
The symbiosis protocol uses both types of wrapped token
•The wrapped version is issued (minted) on the same blockchain QR this token is minted on the same blockchain through Offline scanning on on the same device To enable encryption into another blockchain.
•The wrapped version is issued (mined) on another blockchain. This blockchain is used to handle cross-chain swaps. To distinguish between Wrapped and original token, we call it sToken e.g sUSDT, sUSDC, sBUSD etc. By design, the Symbiosis protocol ensures that each wrapped token and sToken is backed 1:1 ratio by the original asset locked in a smart contract.
is a software token compatible with RSA SecureID 128-but (AES) tokens, it is a token-code generator used to manage and manipulate tokens on a simple command line interface (CLI). allowing other software to generate token codes on demand.
The purpose of the Symbiosis protocol is to do cross-chain swaps And there are two cases while doing cross-chain swaps:
a cross-chain swap from a blockchain with a high gas fee to a blockchain with a lower gas fee
a cross-chain swap from a blockchain with a lower gas fee to a blockchain with a high gas fee.
The Cross-chain liquidity engine is a set of smart contracts used to perform cross-chain swaps. The smart contracts are deployed and tuned by Symbiosis administrators while adding a blockchain to the Symbiosis protocol. The Symbiosis protocol As an Example I consider the pair Ethereum —— BINANCE Smart chain. On Ethereum and BUSD on Binance Smart chain, since the gas fee on Ethereum is going to be higher than the gas fee on Binance Smart, the liquidity pool to do cross-chain swap for this pair is located on Binance Smart chain. This pool contains sUSDC<> BUSD, where sUSDC represents USDC of Ethereum on the Binance Smart chain with the ratio of 1:1. Through all these steps, the user is the sole owner of the swapping assets. The user is permitted to do these swaps on their behalf to the Symbiosis protocol by signing contract Steps.
SymbiosisDeFined
