7 Reasons Why Considering Symbiosis

By ben06x | ben06x | 23 Mar 2022


Crypto is implemented as an anonymous method of payment in a decentralized way, with some coins trying to fight the inflation of life by having a number in circulation limited, others trying to be the next way of daily life payment by having low transactions fees and others trying to build true decentralized finance by having a well-built ecosystem. But, with all these crypto projects fragmented in the crypto universe, it is sometimes hard to take full advantage of decentralization when moving liquidity across chains because of low interoperability between one and another. Sometimes when trying to do so, one may be confronted to high minting and transaction fees, a process hard to deal with, transactions that could fail and so much more issues... To solve these problems and to make cross-chain exchanges as easily as possible, one may use Symbiosis Finance.

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Symbiosis is a multi chain liquidity protocol aggregating decentralized exchange liquidity mostly across Ethereum Virtual Machine (EVM) networks. Smart contracts have been developed on purpose by the Symbiosis team, in order to solve the problem of liquidity fragmentation across blockchains and the difficulty to conduct cross-chain exchanges. Still not convinced of choosing Symbiosis rather than other current exchanges? Here are 7 reasons why you should reconsider that statement:

 

1. Non-Custodial Platform

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When swapping an asset from a blockchain to another is necessary, people tends to turn towards centralized platforms to cross-chain exchange because not a lot of decentralized platforms offers this kind of service. This leads to the requirement of being registered in the concern platform and part of a centralized database, and all of that without owning the private keys of the wallets which their funds are in. As Symbiosis is a non-custodial platform, no registration is necessary! Swapping orders can directly be made by simply owning a personal wallet, so that users have full ownership of their funds.

 

 

2. No KYC (Know Your Customer) Process

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Know Your Customer (KYC) verification process is used in centralized exchanges to verify the identity of the customers, so that people using the platform can be tracked if necessary. Most of the time, to unlock full verification of the account, providing full name, residential address and legal documents, like ID, is required. Sometimes, only verifying a phone number is possible, but may lead to restriction towards the use of the features of the centralized platform. In any case, by going through this kind of process, financial institutions may know how much crypto one own and where it is located, affecting the purpose of anonymity when using crypto. With Symbiosis, no KYC verification process is required to exchange between assets, making one keep full anonymity!

 

 

3. Easy Cross-Chain Exchange

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Moving liquidity across chains has never been so easy when using Symbiosis. If funds are available on a blockchain and have to be moved to another one, it will not be necessary anymore to go through centralized exchanges to do so because the two blockchains are not linked between one and another. Therefore, swapping the original token on the centralized platform to the wanted one and asking for a withdraw on a personal wallet will not be necessary anymore. So as all the steps in a decentralized way, such as minting wrapped tokens, having huge fees to process, slippage, ... Symbiosis offers solutions to transfer liquidity easily between blockchains through decentralized finance. For that, three Symbiosis layers can be highlighted:

(1) The front end : web/app interface to collect orders regarding the assets to swap.

 

(2) Cross chain (/liquidity engine): set of smart contracts created by the Symbiosis team to automate the swapping process. The following ones can be enhanced:

  • Smart contracts related to the transfer of wrapped tokens and stablecoins
  • Smart contracts responsible for the minting and burning of wrapped tokens
  • Bridge smart contracts to ensure the routing process between relayers network and smart contracts 

 

(3) The relayers network : peer-to-peer node network receiving orders from liquidity engines and having for purpose to provide transactions on the appropriate blockchains.

 

 

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Each blockchain has its own liquidity pool and is used by the Automated Market Makers (AMMs) to enable trades in a permissionless and automatic manner, by using the liquidity inside the pool rather than a book orders of buyers and sellers in a centralized manner. Two models of AMMs exist :

  • AMM for moving native tokens, e.g. ETH/BNB
  • AMM for moving stablecoins, e.g. BUSD/USDC

 

 

4. Low Fees

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When moving liquidity across chains in a decentralized way on your own, lots of steps as likely going to make fees high, such as minting wrapped tokens, transaction fees, slippage, ... When using Symbiosis, all these steps are thought by the front-end to find the lowest fees for the swap. For that,  Symbiosis distinguish wrapped tokens minted on the same blockchain, e.g. USDC on ETH, from wrapped tokens mined on another blockchain, e.g. sUSDC on BSC, standing as Synthetic Tokens. To be noted that, each Synthetic Token is backed by the original token on the original blockchain which is locked in a Symbiosis' smart contract, so that 1:1 ratio is respected.

Therefore, these Synthetic Tokens are very useful when a cross-chain swap from blockchains with different gas fees occurs:

Moving from a blockchain with lower fees to a blockchain with higher fees: Consider swapping BNB to ETH, in this case, transactions on Binance Smart Chain cost way less than transactions on Ethereum. Therefore, Symbiosis will make more transactions on Binanche Smart Chain than Ethereum, so globally, without being too technical, the process will be as follows:

  • swapping BNB->BUSD on Binance Smart Chain
  • minting sUSDC Synthetic Token on Binance Smart Chain by swapping BUSD->sUSDC
  • depositing the sUSDC to the Symbiosis contract address on Binance Smart Chain
  • burning sUSDC on Binance Smart Chain and informing a BridgeV2 contract that a cross-chain swap can be performed
  • USDC on Ethereum is released at a 1:1 ratio with the sUSDC previously burnt 
  • swapping USDC->ETH on Ethereum
  • depositing ETH to the user's address on Ethereum

 

Moving from a blockchain with higher fees to a blockchain with lower fees: Consider swapping ETH to BNB, in this case, transactions on Ethereum cost way more than transactions on Binance Smart Chain. Therefore, Symbiosis will make more transactions on Binanche Smart Chain than Ethereum, so globally, without being too technical, the process will be as follows:

  • swapping ETH->USDC on Ethereum
  • depositing the USDC to the Symbiosis contract address Smart Chainand informing a BridgeV2 contract that a cross-chain swap can be performed
  • sUSDC is minted on Binance Smart Chain at a 1:1 ratio with the previous USDC amount  
  • swapping sUSDC->BUSD on Binance Smart Chain
  • swapping BUSD->BNB on Binance Smart Chain
  • depositing BNB to the user's address on Binance Smart Chain

 

In any case, for a cross-chain exchange, Symbiosis makes it as easily as possible while finding the lowest fees for the swap.

 

 

5. Well Known Partners

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Symbiosis is backed by the ecosystem funds of leading protocols:

 

Moreover, Symbiosis is also backed by some leading wallets, exchanges, and venture funds such as:

 

 

6. SIS Token

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An ERC-20 protocol token, named SIS, has been created by the Symbiosis team:

Network: Ethereum

Contract Address: 0xd38BB40815d2B0c2d2c866e0c72c5728ffC76dd9

Decimals: 18

Total Supply: 100,000,000

Token Repartition: 

  • Public Round Z 0,10 %
  • Public Round DaoMaker 0,55 %
  • Public Round Y 0,65 %
  • Strategic Round 4,70%
  • Relayers Auction 5,00%
  • Advisory 5,00%
  • Private Round 6,00%
  • Seed Round 10,00%
  • Liquidity Farming 10,00%
  • Protocol Liquidity 10,00%
  • Node Runners Rewards 15,00%
  • Treasury reserve 15,00%
  • Founders Teams 18,00%

Purpose:

  • staking, to deploy a node in the relayers' network to participate in the consensus through Proof of Bond
  • governance, regarding Symbiosis DAO and DAO Treasure

Get SIS token: 

Trackers:

 

As of today the project is still in development, and even with all the effort already made, not all people involved in the crypto universe may have discovered it yet. Consequently, the price of SIS token may strengthen in the coming months.

 

 

7. Platforms And Social Media

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Symbiosis is present in many platforms/social networks:

Do not hesitate to be part of the community by following Symbiosis on their social networks.

 

 

Final Thoughts

Multi chain liquidity protocol aggregating decentralized exchange liquidity mostly across EVM networks, Symbiosis puts lots of effort to sharply decrease the difficulty to conduct cross-chain exchanges for users and to reduce the problem of interoperability of blockchains and may revolutionize the way in which liquidity is transferred between wallets of different chains in the future to come.

So, among all that have been highlighted, are you willing to choose Symbiosis for your future cross-chain transfers? Feel free to share your thoughts and any other feedbacks in the commentary section! 

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ben06x
ben06x

French student interested in all cryptocurrencies.

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