Symbiosis in layman words.

This is my first piece ever in the field of writing. Hopefully, it inspires interest from Publish0x for noticing it and consideration for opening some kind of space for my posts.


When I first started to think writing about Symbiosis, it was kind of middle of nowhere feeling. So, I searched in the dictionary for the meaning of the word ‘symbiosis’.


Symbiosis is used in two different context; one in the field of biological science and the other in normal day to day life.


In biology, symbiosis means an interaction between two different different organisms which are living in close physical association, and that interaction is typically advantageous and beneficial to both organisms. A typical example is bees, plants and corresponding pollination process and bees being able to extract nectar from flowers of plants.


Needless to say, in normal, day to day human life too, the symbiosis interactions and relationships take place without even thinking and indeed are taken for granted.


So, how does this mutually beneficial and advantageous interaction and relationship transpire in crypto currency world? It is where the Symbiosis, I think, can take its place.


First and foremost, in the symbiosis relationship, each party does what ever it naturally wanted do and nothing is forced or required the party to do against its will. Yet, by the symbiosis relationship and interaction, each party receives benefits and interaction results in advancing each party’s interests, which normally are their essential need or required for day to day living.


The Symbiosis platform provides exactly that kind of functionality in the Crypto currency world.


For example, you walk into bureau de change, bank or post office (or some facility that offers currency exchange services) for exchanging fiat money for holiday or some other purposes. The Swap functionality in Symbiosis does exactly the same for any currencies (I do intentionally avoid the word network) in the Crypto world that is listed in the Symbiosis Swap functionality.


Now, the way the crypto currency has evolved, there are kind of major base crypto currencies (these are called network in the crypto currency world). Since creating base major crypto currency and getting traction for it is difficult, laborious, arduous and risky process, any other subsequent crypto currencies are created on these major base currencies (i.e. networks), though there is no strict requirement to do so.


In the fiat currency exchange service, exchanging major base currency to another major base currency is a straightforward business.


However, exchanging major base crypto currency to another major base crypto currency does still involve some technical manipulation and as such it is can be a very deep learning curve for people who not into technology or not comfortable with technology and technical manipulation of crypto currency networks.


Symbiosis does eliminate the level of complexity involved and feels as though the experience is just like using fiat currency exchange service in the crypto currency world.



Further, Symbiosis provides the same exchange (i.e. Swap) service for other currencies that are based on major base crypto currencies (i.e. networks).


This is why Symbiosis calls its Swap (i.e. exchange) service a cross chain swap.


The fiat currency exchange service example is to give the idea of (crypto currency) exchange service that is comparable to fiat currency exchange service. However, in the larger scheme of crypto currency financial services, the Symbiosis Swap function can be regarded as a decentralised Swap (i.e. crypto currency exchange) service, where no body controls it and only affected by activity (buying, selling, exchanging) in the market. The market maker is Symbiosis in this case.


Naturally it leads to how the market is made? The market is made by a process and concept called automated market maker. Basically, it is a computerised process (an algorithm) that determines price of major crypto currencies against the crypto currencies to which the major crypto currency can be exchanged. The major metrics that are fed into the computerised process are buying activity, selling activity and ratio (i.e. what is liquidity in other markets too) of crypto currencies that are attempted to be exchanged or swapped. Here, we are only interested in simple explanations for anyone to get their head around the concept of automated market making, though more complicated process and calculation do take place in the background. For example, in an otherwise normal street market, if buying of certain item disproportionately increases within certain period of time, the price obviously will follow and increase. However, the pricing is determined by shop or market owner (i.e. human) by the owner’s perception. Where as, in the automated market making, it is normally self adjusting, predetermined rules (i.e. an algorithm) makes the decision about the price and therefore not subject to human perception.


It then follows to the question of how the liquidity is provided. This is an involved technical topic and explained using the idea of basket of fiat currencies (these are stable fiat currencies such as US dollars) and making each basket analogue to major base crypto currency (i.e. network).


Let’s say there is a basket of US Dollars and Canadian dollars that hypothetically exists, and call that basket A. Now, A is made direct analogy for one major base crypto currency (i.e. network).


Let’s also say there is another basket of British pound and Euro, and call it basket B. Basket B is made direct analogy for another major base crypto currency (i.e. network).


The Symbiosis platform calls the Symbiosis representation of stable crypto currencies (analogue to US Dollars, Canadian Dollars) based one major base currency (i.e. network, analogue to basket A) as wrapped tokens. It is obvious wrapped tokens can be easily minted (just like US Dollars or Canadian Dollars) because they are based on particular major base crypto currency (i.e. network). By definition, the wrapped token are not visible to end users of Symbiosis.


The problem is now is how to represent a stable currency on one major base crypto currency (i.e. network, analogue to basket A) in another major base crypto currency (i.e. network, analogue basket B).


Symbiosis solves this problem by introducing the tokens named sToken. So, sToken is a representation of a stable coin on one major base crypto currency (i.e. network, analogue to basket A) in another major base crypto currency (i.e. network, analogue to basket). So, essentially Stokens serve cross chain Swapping or exchanging purpose.


Symbiosis system also makes sure that the ratio of wrapped tokens on one major base crypto currency (i.e. network) to sToken on another major base crypto currency (i.e. network) remains 1:1, and thereby guarantees stability and liquidity for swapping.


The processing is done on major base crypto currency (i.e. network) where gas fees are minimal, which obviously results in lowest possible transaction cost for end user.


Say for example, there is a crypto currency called ABCD that is different from stable crypto currencies on one major base crypto currency. To swap ABCD to XYZ on another major base crypto currency, Symbiosis first swap ABCD to stable crypto currency in the same major base crypto currency (i.e. network). Then, using the sToken (that represents the stable coin the major base crypto currency) on other major base crypto currency (i.e. network), Symbiosis swaps sToken to stable crypto currency on other major base crypto currency because of wrapped tokens.


It should be noted that there only one stable crypto currency – sToken pair e.g. network N’s stable crypto currency – Network M’s sToken). The reason for one pair is that two pairs (in this case, network M’s stable crypto currency – Network N’s sToken) splits the liquidity into two pools, where as one pair keeps the liquidity in one pool, which provides higher liquidity than splitting the liquidity. In addition, transaction cost can be reduced to shifting the processing to network that operates on the lowest possible processing fee.



Thee sTokens cannot be traded by end users since sTokens serve internal technical purpose of cross chain (i.e. network) swap.


However, sTokens can be exchanged for stable crypto currencies on on Symbiosis decentralised exchanges, and they also can be added to Symbiosis decentralised exchanges for providing liquidity. There are rewards for providing liquidity in Symbiosis (i.e. adding sTokens and leaving them in Symbiosis for a period of time).


There is also another token named SIS in Symbiosis and it is the protocol token of Symbiosis. It is deployed on Ethereum and used for staking to run a node in the relayers' network and Governing the Symbiosis DAO and DAO Treasure. DAO is the acronym for Decentralized Autonomous, which roughly analogues to venture capital fund in the fiat financial world and services. However, explanation of it requires another extended piece of writing and therefore left to readers inquisitiveness and exploration.


There are also tokens called LP tokens which stands for Liquidity provider tokens. The idea behind LP token is to incentivise end users to provide liquidity to decentralised exchanges that run on automated market maker computerised algorithm. LP tokens can then be staked for receiving rewards SIS tokens.

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Symbiosis in layman words
Symbiosis in layman words

Attempting simple, end user friendly, jargon-free description of Symbiosis.

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