Symbiosis, in biology sense, means life living together for the best benefits possible than otherwise on their own.
Like the relationship between bees eat nectar from flowers, so cross-pollination can happen for flowers, both bees and flowers get what they want in the process.
In the same way; Symbiosis Finance, a leading edge decentralized multi-chain liquidity protocol, offers the services that allow users to swap their tokens between different chain networks - Ethereum, BNB, Polygon, Avalache etc, and more!
That means, all of your tokens in different blockchain networks can now be swapped instantly with lower fees and easily manage in one place.
Symbiosis protocol provides stress-free and convenient liquidity Swaps and Token-pairs add in liquidity pools on different blockchain networks experience in one app.
But let’s back up a bit, why token and why Symbiosis Finance matters?
There are different types of tokens in the crypto space and we’ll focus on wrapped token since Symbiosis uses it for their swap exchange to work.
A wrapped token is a tokenized version of another cryptocurrency for a quicker and easier exchange on different blockchain networks. For example, a wrapped token is WBTC and is tied with the value of real BTC.
Then why don’t we just trade BTC like normal?
Each blockchain is distinctive to one another and some simply don’t support other native coins. Let’s say you want to lend some BTC on AAVE (a system of lending pools), but since AAVE is only available on Ethereum network, and Ethereum network doesn’t support BTC.
The only way to solve this is to wrap up your BTC (bitcoin) to WBTC (Wrapped bitcoin) so this token can now be used on Ethereum network as it accepted.
A wrapped token is a representation of its original cryptocurrency.
It’s very similar to stable coins, where they pegged to a fiat’s currency’s value.
Wrapped token is 1:1 ratio to the real cryptocurrency because it needs a custodian (the third party and normally this is all done with code) to verify the amounts of the cryptocurrency you have, so it can issue you a wrapped token respectively.
So if there is 21 millions of BTC, there will always be 21 millions of WBTC. Nothing more or less.
That also means the wrapped token can be exchanged back to real coin at any time.
Okay, then what is the benefits of using wrapped token to interact with another networks?
The main three benefits are interoperable, efficiency, and lower cost fee.
Take the advantage of different blockchain networks for a moment, Ethereum network tends to clears blocks quicker than Bitcoin network, which of course provides a speed advantage, meanwhile, to do things on Polygon network is cheaper than the previous two networks. So, in these examples, you can maximize your benefits by taking different blockchains advantages.
Nevertheless, swapping tokens from one network to another was still 1+1 =2 thing until Symbiosis is born, a comprehensive coverage for token swap and liquidity use, with the aim to connect all of the networks together.
It allows users to exchange, liquidize their tokens with different networks at one glance, and calculates the best route for your swapping experience.
Cool! After we run through the basics, let’s breakdown the details of what Symbiosis can do for you:
1. Let’s Swap!
- Simple, easy interface
All you need is,
- To know which network you would like to swap with,
- the amounts for exchange,
- and some native token/cryptocurrency of your network for transaction fee.
Here to check out their simple guide for more details.
One of the advantages of this swap is that, symbiosis’s built a protocol that can calculate the best route for your swap. It calculates in which network should your swaps get the best price and execute them within those networks for you. Since it’s cross-chains, the possibility of liquid swaps is not limited by only one exchange.
What it should take you long, masses of steps, popping in and out of the screen to switch networks, in completing all of the transactions in the old days, now Symbiosis does it for you in a matter of seconds.
2. Liquidity pools to join!
- Symbiosis supports liquidity pools with “stablecoin <> sToken” pairs that within their cross-chain networks. You can browse on their offers here.
- Any user who adds liquidity to a liquidity pool will automatically become a liquidity provider and receive rewards for providing liquidity.
3. Stake your LP token!
- Any decentralised exchange that runs on AMM protocol will issue LP (Liquidity provider) tokens to liquidity providers in exchange. When you have LP tokens, simply hop onto Stake LP token page, and input the amount you wish to stake, press deposit and you’re set. Simple as that!
4. Integration of browser wallets, extensions and dApps!
- Symbiosis supports Webapps (Mainnet, Testnet), and wallets (Metamask, XDEFI, Coin98) in the form of browser plugins or applications. For more details.
5. Upcoming Cross-chain farming, Mitigate impermanent loss, L2 farming and more!
- These are their upcoming mini projects aim to merge with their decentralized multi-chain liquidity protocol. Follow their Twitter for more exciting details!
As more businesses tokenizing their assets between the physical world and new crypto exchanges emerge, welcoming the new age of digital currencies, tokens will be more diverse and transferable. Symbiosis will act as a bridge between the gaps and foster the growth.