Source: https://coingape.com/symbiosis-finance-a-detailed-review/

Core Concept on Symbiosis Finance

By VisionX | Blockchain365 | 23 Mar 2022


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Symbiosis is a decentralized blockchain-based liquidity protocol that supports multiple chains like BNB Chain, Ethereum, Polygon, Avalanche, and other blockchain networks that are about to come for this. In the decentralized ecosystem, users always expect more security, scalability, easy-to-use UI, and more freedom to control their assets. Fortunately, Symbiosis attempts to meet these demands as it perfectly meets the following requirements: 

  1. Simple User Interface
  2. Interoperable (It supports bridges to the different blockchain networks)
  3. Non-custodial (Users are free to control their assets)
  4. Offers cross-chain liquidity

In order to understand how Symbiosis functions, it is better to understand its three things as follows: 

  1. The front-end: 

It is basically a web or mobile app-based interface used to collect information about the assets which are supported by the Symbiosis protocol. It has the following major functions:

  • Building a route for swapping different tokens at the best price.
  • Letting users sign and send the transactions. 

 

  1. The cross-chain liquidity engine:

It contains the set of all Symbiosis protocol-supported smart contracts which are deployed for the different functionalities. It has a genuine cross-chain liquidity engine for generating automated liquidity pools. 

 

  1. The relayers network:

It is a decentralized P2P node network that is used for the following purposes:

  • To manage the events or the transactions produced by the liquidity engines of the different supported blockchains.
  • To reach the consensus to provide a decision.
  • To sign and send the transaction after achieving the consensus. 

Image source: https://docs.symbiosis.finance/

Symbiosis supports WebApp for both Testnet and Mainnet. The Testnet WebApp can be accessed from here to be familiar with the platform. Follow the following steps to use testnet WebApp.

  1. First, install any of the supported wallets, MetaMask, XDEFI, Coin98, Wallet Connect, Trust Wallet, and ONTO wallet. For simplicity, here we use the MetaMask wallet Chrome extension. 
  2. Now create the wallet and click on the “Wallet connects” option of the Symbiosis WebApp testnet platform. Please remember, you have to adjust Rinkeby Test Network in your MetaMask wallet.
  3. Click on the “MetaMask” then unlock the wallet to connect Testnet WebApp.
  4. From the button of the page, you can request the test ETH, BNB, Matic from the faucet sites for testing purposes. 

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Alright, Testnet WebApp allows you to be familiar with the platform, and you will know very well how the entire platform works before diving into the Mainnet WebApp interface. 

Well, the following picture exhibits the all-essential components of the platform, it is better to know the function of each option while accessing the Testnet WebApp interface. 

Image source: https://docs.symbiosis.finance/

Here we go for the Symbiosis Mainnet WebApp. You can follow the following steps. 

1. You have already installed and adjusted the MetaMask wallet (or any supported wallet you wish to pick), click on this link, and then adjust the desired network for swapping the tokens. In this case, the Ethereum Mainnet is selected. 

4e16eb8f769deec5c947bc949ee8ed1a960b0f57cb7999a6ae10fa0498b353cb.png2. Select the token for “Transform from” and “Transform to". Here BNB to USDT is selected for BNB Chain(Note:-You are free to choose different supported chains like Ethereum, BNB Chian, Polygon, and Avalanche.

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3. Now adjust the amounts for swapping and get the desired amounts, simple as that. Please note the “Slippage Tolerance” that is adjusted to 3% which means the trade will be automatically canceled if the price is exceeding the 3% set on the system. 

 

Symbiosis Finance also allows users to add liquidity by clicking on the “Pool” option. It supports stablecoin and tokens to add as the liquidity and those users who add the liquidity will automatically become the liquidity providers to receive the rewards. It is suggested to follow this detailed guideline to become a liquidity provider on Symbiosis.

 

The genuine and the real projects always work hard to bring the best and new to the users by understanding their interests, most of the decentralized platforms like Uniswap were struggling with the Ethereum scalability and high transaction cost issues until the ETH scaling solution Arbitrum One is integrated on Uniswap. Symbiosis Finance understood these problems and created a platform to solve all the persisting problems in the decentralized ecosystem. The beauty of a decentralized platform is, there will be no centralized entity so that there will be no risk of single-point failure. Users can fully control their assets on Symbiosis protocol as they are just required to connect the wallet for the smart contract execution. 

The fees will be automatically deducted from the platforms while performing different operations like swapping tokens, sending tokens, etc. Everything is transparent so no one can misuse the funds but users have to be careful themselves while using the platforms. It is always advised to install good quality antivirus software to block phishing and malicious software. Never share your wallet’s private key or secret phrase with anyone else. 

 

Wrapping Up:

Clearly, this decentralized project Symbiosis has a long-term vision in the multi-chain world to offer user-friendly services by creating easy-to-use WebApp interfaces. It aims to support as many as possible bridges to the different blockchain networks in one place so users can find this feature interesting. Technically, it supports L1/L2 EVM compatible and WASM blockchain. As per developers, Solana will be integrated soon. So many interesting features are about to come in this advanced protocol. 

 

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VisionX
VisionX

I am a crypto enthusiast.For me, DOT is my favorite token, Bitcoin is the best coin, Atomic is the best wallet and Binace is the best exchange. Thanks.


Blockchain365
Blockchain365

This blog attempts to provide the regular updates about rapidly advancing blockchain technology.

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