Before heading to crypto, blockchain, DeFi, and DEXs let us take a look at what does symbiosis means in our lives on earth.
Symbiosis is the terminology used for two (or more) organisms that are different and are coexisting together and nurturing each other. In other terms mutual benefits for both species.
How does that relate to our topic?
Well at the core of Symbiosis finance creation we can see the concept similarities between the name of the brand and the features it brings to crypto.
Symbiosis Finance is a Multichain AMM DEX (Automated market maker, decentralized exchange) and liquidity protocol. (If you are not familiar with what this means bear with me).
What is a decentralized exchange?
It is an exchange not controlled by one official entity running on a specific blockchain. It is generally powered by a technology (or a code) called AMM or automated market maker which simply allows for the dex to run as an exchange using liquidity from users to power swaps of different coins.
One of the big problems traditional DEXs are facing is the blockchain limitations to swapping tokens. A simple example is that, if a coin only runs with ERC 20 (Ethereum) it is nearly impossible to swap it on other blockchains natively ex: BEP 20 (BNB chain or formerly BSC Binance Smart Chain), but there is always ways of adding coins and multi networks wallet that are not very intuitive and are generally inquire loads of fees since they require plenty of transactions.
Symbiosis Finance is here to solve that problem.
Let me explain it to you in an example of popular coins:
So Symbiosis at the moment supports 4 major networks with their protocol including BNB Chain (formerly BSC), Ethereum, Polygon, and Avalanche, with more networks to be added in the future. As we talked earlier, about the symbiosis in nature, this protocol allows the swap between these blockchains to be seamless and without a centralized entity controlling your crypto, this means these blockchains live in symbiosis on this protocol thanks to the DEX.
As an example, we will take $CAKE one of my favorite coins on the BNB Chain, and Chainlink $LINK a crucial oracle on the Ethereum blockchain.
The only thing you have to do is switch your Metamask wallet to a different network choose $CAKE, swap to $LINK, approve the transaction et voila! All done no need for any transfer to any other wallet or exchange.
Adding to that every DEX has its own liquidity pools where generally APRs are very attractive for investors to make use of their cryptos rotting in wallets. Symbiosis does not disappoint with great pairs and I assume a variety to come with a very good APR of 225.10 % on some pairs at the time of writing.
This APR is subject to fluctuate but just so you have an idea.
One last feature that Symbiosis plan to bring is Advanced Farming. It is a Layer 2 farming system that will be also available for cross-chain. Very excited to see where the project goes from here.
After reading this article I am surprised if you will look at traditional DEXs the same way, this space is growing fast and competitors are growing by the day implementing AMM technology and innovating on it similar to the Symbiosis case where they are allowing much of the things that used to be a hassle and required a lot of transactions, to be as simple as pressing SWAP.
I am very excited for future announcements and for future developments and will stay in the loop and update you guys, remember this article is informational and in no way is a brand promotion or financial advice.
Until the next one, keep earning like a boss.
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