Symbiosis

We are glad to finally present our Symbiosis v2! Since its launch Symbiosis v.1 (or beta-mainnet) was mainly used for hypothesis testing, collecting feedback from partners and community and other initial activities. With v2 we&#39;re ready for the next round<h2 id="header-0">Rationale</h2>The concept of a seamless cross-chain engine was first formulated in late 2020 – early 2021 (the name Symbiosis appeared much later). To differentiate ourselves from the crowd, we dared to build a full-fledged cross-chain AMM DEX, not just another bridge with illiquid worthless USDJxyz tokens.On March 9, 2022, we announced something we called the Symbiosis beta-mainnet. Our goal was to present a feasible solution that would meet the following criteria:<ul><li>any to any swaps for native token (not just stables);</li><li>best rate for the end-user;</li><li>1-click seamless user experience;</li><li>easy integration with other products (e.g. wallets).</li></ul>For this purpose, in Symbiosis v1 we have presented the idea of inter-chain stablecoin pools, i.e., pools between all supported networks (e.g. Ethereum/BNB, Polygon/Avalanche and so on).Thus, similar to how users of on-chain DEXes (Uniswap) provide liquidity to pools consisting of an asset pair (thereby providing some swap direction), Symbiosis v1 has delivered a powerful way for liquidity providers to supply liquidity in stables with no impermanent losses.We have already disabled v1, but we still offer several programs for liquidity providers (LP farming, cross-chain farming, veSIS). Also we have various integration options for developers — Symbiosis JS SDK, Symbiosis API, Symbiosis Mobile SDK.Meanwhile we&#39;ve done some fancy stuff, like adding Bitcoin (any token to BTC, without permission), instant liquidity provision in Benqi, AAVE, and a few others.We have almost accomplished what we had been planning and it&#39;s time to move on as there&#39;s always room for improvement here and there.<h2 id="header-1">Performance</h2>The main bottleneck we had in version 1 was based on the liquidity pools of stable coins (or rather, Curve-like coins). In version 1, there must be one liquidity pool for each pair of networks. If there is no such pool, direct exchange between nets is impossible.And this is perfectly in line with our ability to add new networks, both from the pace and technical features perspective. There are smart contracts (or the equivalent of smart contracts) that implement the logic of checks and exchanges to perform inter-chain transactions on the network. And blockchain networks are sometimes entirely different.To summarize, in v1 we faced the fact that dividing liquidity between different pools equals capital inefficiency — the demand for a particular swap direction at a given time may change, but liquidity is held in all pools just in case. And the second thing we had to work with was a limit on how many networks we can maintain.<h2 id="header-2">S-chain</h2><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/6b1270ec1d7f4e15976287ad7e52278d.png" />In version 2, we decided to select one of the networks and make it a serving (S-chain) network. We selected Boba BNB L2, a recent partnership between Boba Network and BNB Chain.We decided to use an existing solution rather than build our own (i.e., run our own L2 network) to keep us focused and not expand to areas that are outside of our core business. By doing so, we can ensure that we dedicate 100% of our efforts to cross-chain interoperability.We have been in touch with the Boba Network team for some time, when they came up with the solution we really needed. We thought it would be great to collaborate with them and the BNB team, as it could be a perfect (triple win) match. The BNB ecosystem has its own stablecoin, BUSD, and Boba BNB L2 meets perfectly our requirements for low cost and security.Symbiosis&#39; inter-chain logic primarily exists on the Boba BNB L2 chain, so in terms of security we are flexible enough to add different blockchain networks at the request of users/partners. In addition, all the liquidity exists on this chain — which helps us overcome the obstacles we encountered in the first version.<h2 id="header-3">Single-Sided AMM pool</h2>In version 2, we have only one pool for inter-chain transactions between N networks. When adding a new network to the protocol, we have to add another kind of sToken to the already existing pool.As in v1, users pay gas fee only on the source chain because the protocol covers the gas fee costs on the destination chain – we cut it out from the middle of the transaction body. However, for some of the exchange directions the rate will be even better than in v1.Overall, in Symbiosis v2 we have much higher pool efficiency, which has a positive impact on the swap price for end users and partners using our SDK/API, and can easily add many more networks.<h2 id="header-4">And more to come…</h2>We plan to add more networks (including non-EVMs) in the following months, relying on market sentiment and demand from the community and partners. Besides, v1 and v2 will be running simultaneously for some time. For those using the Symbiosis API, we will just switch the URL to v2.Before the release, we also passed a security audit from Zokyo – this one will be added to the rest on GitHub soon. We&#39;re still working on integrations with aggregators and wallets, so we hope to make some great announcements soon.Stay up to date with the latest Symbiosis news: <a href="https://twitter.com/symbiosis_fi?utm_source&#61;medium.com&amp;utm_medium&#61;social&amp;utm_campaign&#61;MonthlyJournalJune" rel="noopener noreferrer nofollow">Twitter</a> | <a href="https://t.me/symbiosis_finance" rel="noopener noreferrer nofollow">Telegram</a> | <a href="https://discord.gg/YHgDSJ42eG" rel="noopener noreferrer nofollow">Discord</a> | <a href="https://www.instagram.com/symbiosis.fi/" rel="noopener noreferrer nofollow">Instagram</a> | <a href="https://www.linkedin.com/company/symbiosis-finance?trk&#61;pulse-article_main-author-card" rel="noopener noreferrer nofollow">Linkedin</a>

Striking users' imagination: Symbiosis v2, enhanced performance, and single-side cross-chain AMM pools

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nickavramov

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