Symbiosis the future assistance to Multichain Swapping Router

The digital token ecosystem is growing daily. This is a new platform with different merits to offer its users. But it never satisfied users' cross-chain exchange until the emergence of Symbiosis finance. It was invented by the Avalanche Asia Star Fund (AVATAR) and supported the development of its network.

Symbiosis Finance is a Defi cross-chain liquidity protocol that allows users to remain the owners of their funds while exchanging them for other blockchain assets. Its target is to resolve problems facing liquidity differences across the blockchain networks and poor user experience while working with Web3 and Defi Thrift. 

The Unique Features of Symbiosis 

These are some of the requirements users are looking for, which the Symbiosis protocol has made possible.

1. It is easy to swap using the platform. No extra wallet is needed, just like other Defi assets always demand. And it does not waste time during this process.

2. It is not regulated by anybody, so it is fully decentralized. You are not stopped by anything while accessing it or swapping any tokens.

3. It accesses every blockchain that gets enough market attention. This is the ultimate aim of Symbiosis Finance, to acquire all networks in one shell. This will contribute to shitcoin holders when they are fully present in the market and easily swapped.

4. The user fund is safe. No one has access to your funds except the user.

5. There is limitless multi-chain liquidity. Users can access many tokens while swapping at the best price.

How the symbiosis protocol works

Symbiosis uses the two types of wrapped tokens for swapping, making it a more appreciated means of exchange. They can be issued on the blockchain or another blockchain. It works with both forms of bound tokens.

• The wrapped token minted in a similar ecosystem is used to operate aboriginal cryptocurrency. And there is no generic name for this form.

• The bound token drilled on another blockchain is used to control the multi-chain exchange. It is called sToken (Synthetictoken); sBUSD, sUSDC, sUSDT, sBUSD, sGALA etc.. 

The symbiosis protocol ensures that each wrapped token and sToken is backed in a ratio of 1:1 by the native asset locked in a smart contract.

Tokens supported by the symbiosis protocol: Avalanche polygon, Binance Smartchain, and Ethereum. They are the blockchains supported by the symbiosis protocol on the mainnet. While its testnet supports OEC HUOBI ECO CHAIN, which is interchangeable with other native blockchains.

What is the Symbiosis liquidity pool with sTokens?

This is a means by which the Symbiosis protocol helps in exchanging synthesis tokens for its users. It works with a particular stablecoin on any approved ecosystem or blockchain. For instance, it is USDT on Ethereum and BTCB on Binance Smart Chain. Assuming a user wants to do a cross-chain exchange and the asset at hand differs from the stablecoin selected for the blockchain, the token is swapped to the stablecoin first. 

The Symbiosis protocol has one liquidity pool for every ecosystem with the lowest gas fee for pairing. And it contains the stablecoin chosen for this blockchain and the wrapped indication of the stablecoin of another blockchain (sToken).

The reason why there is only one liquidity pool with sToken

 It is Because of these two reasons:

1. A single liquidity pool with complete liquidity is better than two liquidity pools with incomplete liquidity each.

2. It includes lower gas fees, thereby lowering operating costs.

sToken is mainly used for specialized objectives, and end-users cannot sell them. However, they can use Symbiosis DEXes to exchange for stablecoins or become liquidity providers.

How does symbiosis interact with users?

It allows user interaction with its interface to occur in three phases, making it easy to work with.

These phases are:

• The front-end is the interface that gathers details regarding the token or coin on the blockchains itemized by the symbiosis protocol. And it builds the means for swapping tokens by helping users interact freely and send transactions to the blockchains.

• The multi-chain liquidity engine acts as the middleman. They are smart contracts adopted on every blockchain and approved by the symbiosis administrator. Its work is on cross-chain liquidity pools and off-chain transfer mechanisms, permitting DEX contracts, MINT, and BridgeV2 contracts.

• The relay web is a peer-to-peer (p2p) aid grid of Defi keepers. It gets information sent from the multi-chain engine on every approved blockchain to arrive at an agreement on each transaction. After that, it signs and sends transactions to appropriate blockchains.

The steps it takes while swapping tokens as a user using the three phases for a higher gas fee to a lower gas fee blockchain

Step1

The user (you) chooses assets to exchange; BNB to Cake or BUSD to Cake, any token depending on your choice.

Step2 

The front-ends find the path with the lowest fees for the exchange for you (the user) and provide details for all types of stablecoin rates and their intermediaries. If you agree with the details, depending on your choice, Then you sign off on one transaction. That will permit the symbiosis protocol to do all these intermediate swaps on your behalf. After that, the front-end picks from them to continue the transaction on the native blockchain.

Step3

The Symbiosis protocol does a swap on behalf of the user on the AMM with the best price. AMM must be selected in Step 1. This AMM is not present on the platform but does have the best for exchange.

The token is deposited at the Portal contract address. 

The BridgeV2 contract issues an event informing listeners that there is a request to perform a cross-chain swap.

Step4

The relayers listen to events involving cross-chain swap requests. It reaches a consensus for this particular event and signs a transaction. and send the token to the destination blockchain.

Step5

The Synthesis contract receives information about the request. Then they mint sTokens with the ratio of 1:1 to the deposit made in Step 4. The Symbiosis protocol swaps on behalf of the user on AMM belonging to its platform.

Steps from a lower gas fee to a higher gas fee

Step1

The user selects assets to swap: CAKE to BUSD or USDT ERC20 to UNI.

The front-end finds the path with the lowest fees for this swap and provides the user with details: all intermediate exchanges, charges associated with the intermediate trade, and gas fees. In this case, there are three intermediate swaps: cake, USDTD, and Shiba ERC20, USDC.

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

Step2

The front-end sends the transaction to the origin blockchain (Binance Smart Chain in this case).

The Symbiosis protocol does the swap on behalf of the user on the AMM with the best price. The AMM is selected within Step 1. 

Step3

The Symbiosis protocol will swap on behalf of the user on an AMM (Automated Market Maker) belonging to its platform. As soon as a sToken is deposited to the Symbiosis contract address, the Symbiosis contract burns the sToken and informs the BridgeV2 that there is a request to perform a cross-chain swap. 

The Symbiosis contract informs the BridgeV2 contract that there is a request to perform a cross-chain swap. 

The BridgeV2 Contract issues an action informing the listeners that there is a request to complete a cross-chain exchange. 

Step4 

The relayers listen to events involving cross-chain swap requests.

It reaches a consensus for this particular event and signs a transaction.

The relayers send the transaction to the destination blockchain (Ethereum in this case). The Portal contract receives information about the request. 

The Portal contract releases USDC at a ratio of 1:1 to the sUSDC burnt in Step 4. 

Conclusion

Symbiosis is the future Swapping route together with the Multichain network a better swapping protocol will be establish it is time to try it out.