Symbiosis Use Case: smooth interchain solution for money market protocols


We are working on a series of articles about the use cases of Symbiosis so that you would better understand the full range of our opportunities and features.

This article is dedicated to the money market use case. It may sound a bit complicated but let us explain.

What is the landing protocol?

Money market is basically a fundamental mechanism for any healthy economy. It is a platform where borrowers get money to grow their businesses and pay for expenses, and lenders earn yield and grow their savings.

DeFi ecosystem is not an exception — the economy has changed over time but the basic rules have remained the same.

Decentralized money market protocols like BENQI or AAVE enable users to borrow and earn interest on their digital assets: on-chain crypto or tokenized assets.

The basic functions of the market involve the ability to lend and borrow money. Users deposit digital assets and get tokens for their deposits. These deposits are used to take ownership of income-generating assets, all of which are accessible and could be seen on the blockchain.

Usually deposits start from minimum sums making the entry threshold pretty low for everyone. At the same time ROI for such deposits could be pretty high.

And what is the problem?

In the crypto world all money market protocols are based on a certain blockchain — all the operations are made automatically with smart contracts. But these financial instruments are tightly connected with one particular chain.

It influences on:

  • Number of users and their engagement as they have to own the assets on this particular chain;
  • Profit as the money market protocol can’t deploy on various chains and offer better conditions to its users — based on the chain’s advantages, e.g., lower commission.

Symbiosis solution

We have cutting-edge technology that is used for one-step transactions across different chains — our magical Interchain communication protocol.

When talking about money markets this technology enables users to add tokens to liquidity pools of money market protocols. As for now they are Aave, CREAM, and BENQI.

Such a solution helps on both sides of the process:

  • Users can interact with money market protocol with any tokens they own on any network: borrow assets and put tokens in liquidity pools.
  • Money market protocols can significantly expand the number of users as they are not limited to one particular chain when using Symbiosis API. It also helps to widen the range of features and profit opportunities for money market protocols.

If you want to learn more about our Interchain communication protocol, please read this article and follow our updates.

Next time we will tell you about another use case that leverages the crypto market. Stay tuned!

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Symbiosis Finance
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A decentralized multi-chain liquidity enabler. Symbiosis aggregates liquidity across all EVM-compatible blockchains. Swap between any chain with low slippage.

Symbiosis Finance Blog
Symbiosis Finance Blog

A multi-chain liquidity enabler.

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