A Relationship With Mutual Benefits

By clubby | Shady Ave Micro Farm | 23 Mar 2022


The Symbiosis Logo

Relationships.

Some are beneficial to the people engaged in them.

Some are born out of necessity.

And there are even some that are crafted from Hell's forge (my marriage for instance!)

Today I am going to tell you about a relationship that will allow you to swap assets between any blockchain without relinquishing ownership of the funds.

Enter Symbiosis

The vision began with a simple yet elegant idea: users would be able to move liquidity across multiple chains without having to use cumbersome bridges or AMMs (automated market makers) which can create problems such as liquidity fragmentation.

In a multi-chain world, to be one swap to rule them all without being hampered by the problems encountered hitherto and suffered by crypto-enthusiasts such as ourselves.

Gentleman. Ladies. Degenerates.

Look no further!

110c6e0e2289a7d4457546857cb36a103960a42067c89fbb7dfec6dcf674754f.jpg(Great memes about Symbiosis can be found on their Telegram)

The token of the Symbiosis protocol is called SIS (you can view it on Etherscan here.) It is an ERC-20 token on the Ethereum blockchain. It can be used for two things: staking to run a node in the relayers' network and governing the Symbiosis DAO and DAO Treasure.

Let's take a look at the token distribution, shall we?

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Wrapped Token and sToken

Now, I know what you are thinking: "Didn't I watch a peroxide-blonde hussy shake her ass on the hood of Camaro while sToken played blistering riffs on electric guitars in the background on MTV back in the 80's?"

I feel you, but no, not even close!

If you are wondering what a "sToken" is, it is a synthetic token. A sToken is a wrapped token that is mined on another blockchain that is used to handle cross-chain swaps. This is not to be confused with a wrapped token minted on the blockchain that is used to handle operations on a native cryptocurrency that receives no special name. The Symbiosis protocol uses both kinds of wrapped tokens so you need to know the difference.

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Cross-Chain Swaps

Are you looking for hot, hot cross-chain swap action? Does the prospect of swapping UNI for CAKE make a monsoon in your nether regions that could drown a fesnyng of ferrets in your undergarments?

We really should hang out sometime.

The whole purpose of the Symbiosis protocol is to do these cross-chain swaps. 

But how is that accomplished?

Let's take it straight from the hors - I mean octopus's mouth. From their docs:

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  1. Within this step:

    1. The user selects assets to swap: UNI to CAKE

    2. The front-end finds the path with the lowest fees for this swap and provides the user with details: all intermediate swaps, fees associated with the intermediate swaps, and gas fees. In this case, there are three intermediate swaps: UNI → USDC; sUSDC → BUSD; BUSD → CAKE

    3. If the user agrees with the fees, the user signs ONE transaction. That allows the Symbiosis protocol to do all these intermediate swaps on behalf of the user.

  2. The front-end sends the transaction to the origin blockchain (Ethereum in this case).

  3. The Symbiosis protocol does UNI → USDC swap on behalf of the user on the AMM with the best price. The AMM is selected within Step 1. This AMM does not belong to Symbiosis.

  4. As soon as USDC is deposited to the Portal contract address, the BridgeV2 contract issues an event informing listeners that there is a request to perform a cross-chain swap. More information on the Portal and BridgeV2 contracts is here Cross-chain liquidity engine

  5. The relayers listen to events of cross-chain swap requests. More information on the relayers is here Relayers Network

  6. The relayers reach a consensus for this particular event and sign a transaction.

  7. The relayers send the transaction to the destination blockchain (Binance Smart Chain in this case).

  8. The Synthesis contract receives information about the request.

  9. The Synthesis contract mints sUSDC with the ratio 1:1 to the USDC deposited in Step 4. The Symbiosis protocol does sUSDC → BUSD swap on behalf of the user on AMM belonging to Symbiosis.

  10. The Symbiosis protocol does BUSD → CAKE swap on behalf of the user on AMM with the best price. The AMM is selected within Step 1. This AMM does not belong to Symbiosis.

  11. As soon as the swap BUSD → CAKE is accomplished, CAKE gets deposited to the user's address.

Despite all those steps, the user STILL retains ownership of the swapping assets at all times.

It's time to wrap it up, B

Let's Wrap It Up!

Symbiosis is a fully-decentralized multi-chain liquidity protocol that provides a simple "Uniswap-esque" experience that is non-custodial (no one has access to your funds but you) and allows the user to swap assets across all blockchains. Personally, I think this is pretty game-changing in the crypto universe and I will be keeping a close eye on what the team is up to in the future by following them on Twitter, Telegram, Discord, Github, and their blog.

Don't forget to follow me on Twitter as well!

 

 

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clubby
clubby

Father. BMX’er, Organic Gardner, Cook, Cryptoenthusiast


Shady Ave Micro Farm
Shady Ave Micro Farm

Permaculture. Small-space intensive organic gardening. Cooking. BMX Endurance. Cryptocurrency. Straight out of Pittsburgh where I run my website www.shadyavemicrofarm.com

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