Symbiosis Polygon — a decentralized multi-chain liquidity protocol. It allows users to exchange tokens across all chains while remaining the sole owner of the funds.
Details of how Symbiosis Polygon works
Unlike existing decentralized exchanges (DEXs), Symbiosis Finance supports cross-chain swaps between any blockchain, which allows EdDSA and ECDSA keys to be generated. In practice, this means that you can take an ERC-20 token and exchange it for Solana, Polygon or crypto assets, created on Binance Smart Chain.
The SIS token — the Symbiosis protocol token. It is used for staking when running a node on a relay network, as well as managing DAOs and DAO Treasures.
Project components:
| Frontend | Represents a web interface or mobile application. It collects information about assets in the Symbiosis-supported blockchains, builds optimal swap routes (routes with the best price), helps users to sign and send transactions to blockchains. |
| Cross-chain liquidity mechanism | It is a set of smart contracts, deployed on every blockchain, supported by the Symbiosis protocol. It manages concentrated cross-chain liquidity pools and off-chain routing mechanisms, allowing AMM liquidity to be used across all blockchains. |
| Retranslator network | It is a network of P2P nodes of decentralized custodians. Relays listen for events, generated by the cross-chain liquidity mechanism on each supported blockchain and reach consensus on each event. |
Symbiosis WebApp — a web application, provided by Symbiosis. It allows users to use all the functionality of the protocol: perform cross-chain swaps, supply liquidity, receive rewards, etc.
What is special about sToken?
sToken (sUSDT, sUSDC, sBUSD, etc.) is used to perform exchanges between chains. There are three ways to get sToken:
- Get sToken before adding them to the liquidity pool;
- Withdrawal of tokens from the liquidity pool;
- Getting sToken when canceling a transaction.
After receiving the tokens, you can simply store them in your wallet. Or, become a liquidity provider. Add sTokens to the respective liquidity pool, get rewarded for providing liquidity and burn them later to get stablecoins on the blockchain that the liquidity pool is linked to.
Fees, charged during trading in a particular pool, are added to the total liquidity of the pool without minting new LP tokens. When liquidity providers withdraw their assets from the pool, they also receive a pro rata share of all fees, charged since the first addition of liquidity.
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