Symbiosis in Greek means living together that consists of different species. Thus Symbiosis Finance by its definition is symbiosis in finance where in the case of decentralized finance (DeFi) is where every blockchain can live together. The idea is further supported by their article title The Future is Multichain. In my opinion projects of interoperability/connectivity between chains is always 100% positive where there is nothing negative behind the concept as I never hear any complains about building more connections. Having more options, having more choices, and having more ways to reach a destination are the meaning of interoperability and multichain. The more available things the more the choices, the more the available chains the more the options, that is the meaning of symbiosis. Though hopefully the symbiosis here is mutually beneficial.
Many Different Chains
There are many chains in DeFi. Whether there are many users in those chains are still debatable but the statement "there are users in those chains" are currently facts and connecting these users between these chains will generally be positive because it will definitely increase the activity in DeFi. Whether the symbiosis will be mutually beneficial, commensalistic, neutral, or parasitic like many Maximalist feared is a whole other discussion. Interoperability developers only provide bridges and that is all. Another fact that I found based on my analysis of cryptocurrency donation to Ukraine through Ethereum Virtual Machines (EVMs) are currently heavy from Ethereum users which is over 90%. The data shows that either users does not want to leave Ethereum or it is just difficult for them to. If the reason is latter then it just shows the demand of Symbiosis Finance. Indirectly less interoperability negatively impacts the advertisement of alternative chains which I believe can potentially cause stagnancy in DeFi because logically there is almost no average people in developing countries willing to pay dozens of dollars in gas fee for a single transaction.
Symbiosis Among Chains
This is where Symbiosis Finance and similar applications comes to provide cross chain solutions. Symbiosis is a decentralized limitless multi-chain/cross-chain liquidity protocol. It allows users to swap assets between all the blockchains (interoperable) which are simple Uniswap like user experience while remaining non-custodial and fully decentralized. The image example shows my attempt in swapping USDC.e in Avalanche network to MATIC in Polygon network:
- chose the right chain on my wallet which is Avalanche C Chain Main Network
- connected my wallet to https://app.symbiosis.finance/
- select Avalanche and USDC.e as source
- select Polygon and MATIC as destination
- press the swap button.
Getting SIS Token in Arbitrum
I originally wanted to buy its SIS token through Symbiosis DEX but there was only Ethereum network at the time and I could not because I only have $40 and the gas fee is $50. Therefore, I decided to buy on the Arbitrum network at Sushi Swap. Other than that, we can get on centralized exchanges currently gate.io, Huobi, BKEX, Bybit, CoinEX, and OKX.
Providing ETH-SIS Liquidity in Sushi Swap
Although the full market capitalization (cap) of SIS token will be $100 Million, but the current market cap with current circulation supply is around $10 Million which can still be a potential gem. Therefore, instead of just buying SIS token, I recommend to provide liquidity instead and earn more of the supply reward. In my case, I provided ETH-SIS liquidity in Arbitrum Sushi Swap and staked my liquidity token on Symbiosis Reward Page. SIS token are used to run nodes on the relayer network and for the future decentralized autonomous organization (DAO) governance.
Surface How The Cross-Chain Works
I am not an expert so the image is just my summary after reading their documents of how Symbiosis works so correct me if I am wrong. The symbiosis protocol consists of front-end, cross-chain liquidity engine, and relayers network. The front-end contains the users and the interfaces to connect with back-end applications. The cross-chain liquidity engine is where each blockchain resides, their dexs, their liquidity pools, wrapped tokens for locking assets when transferring between chains, metarouter to the determine the routes of the cross-chain swap, and bridges the connects to the relayer network between different blockchains.
For us regular users, it is probably easier to understand the cross chain flow:
- Our source token is sent to source internal liquidity pools for example in Avalanche there is Pangolin DEX.
- Our source token is converted to whatever token available in cross chain liquidity pool currently stable coins for Symbiosis.
- Our stable coin is processed for cross chain by Symbiosis.
- Our stable coin is released from Symbiosis and sent to destination internal liquidity pools for example in Polygon there is Quickswap DEX.
- Our stable coin is converted to destination token and finally sent to our wallet.
We can support Symbiosis by providing liquidity on their cross chain pools. Finally, this is an article to participate in #SymbiosisDeFined Publish0x Writing Contest originally posted on https://www.publish0x.com/0fajarpurnama0/symbiosis-in-finance-is-positive-for-the-whole-defi-ecosyste-xelgrdp. I am no expert and just a regular user and blogger. Therefore, refer to Symbiosis official documents for clarity:
- Website: https://symbiosis.finance/
- Documents: https://docs.symbiosis.finance/sis-token/sis-token
- Publish0x: https://www.publish0x.com/@Symbiosis_Finance
- Medium: https://blog.symbiosis.finance/
- Github: GitHub: https://github.com/symbiosis-finance
- Twitter: https://twitter.com/symbiosis_fi
- Telegram: https://t.me/symbiosis_finance
- Discord: https://discord.com/invite/symbiosis