Users who are new to the blockchain industry struggle to move and transfer assets, with some losing earned assets through these difficulties. In a bid to solve this issue, boost the onboarding process for new members, and make things easier for the entire industry, Symbiosis was born. In this article, we are going to look at what Symbiosis is and what makes it a project to keep an eye on.

What is Symbiosis?

Symbiosis is a decentralized exchange that helps gather liquidity from several blockchains. It tackles the issue of interoperability that most DEXs face due to the use of virtual machines like the Ethereum Virtual Machine (EVM) and the Optimistic Virtual Machine (OVM). Symbiosis solves this problem by providing a platform for users to seamlessly trade tokens and transfer assets between one another across several blockchains.

Symbiosis Finance aims to bridge the gap between several blockchain ecosystems by providing liquidity to several popular blockchains, making itself a hub for cross-chain communication. To bring this goal to life, they have adopted a decentralized autonomous organization (DAO) framework, which gives users reign over the platform through the use of the base token SIS.

How Does Symbiosis Work?

The Symbiosis protocol is made up of two major parts: the on-chain part (Smart Contracts) and the off-chain part (Relayers Network). These two components handle different aspects of the protocol and ensure the smooth flow of the protocol’s services.

Symbiosis Core: Smart Contracts

Source: Symbiosis Documentation

Symbiosis enables cross-chain transactions through connected smart contracts specifically built and controlled by the administrators. These smart contracts are in charge of important on-chain logic, ensuring each blockchain functions properly. The smart contracts are split into three groups, and each group is made up of a combination of smart contracts that are essential to the completion of their tasks. These smart contracts include:

• The MetaRouter Gateway smart contract guarantees the approved User’s ERC20 token’s interaction with the MetaRouter contract.
• The MetaRouter is in charge of managing interactions with other Symbiosis contracts on a blockchain in one cross-chain operation.
• The Portal contract is in charge of locking and unlocking user stablecoins during cross-chain processes.
• The BridgeV2 smart contract facilitates communication between the Symbiosis relayers network and the Synthesis/Portal contracts.
• The Synthesis contract on the S-chain is used to mint and burn sTokens when conducting cross-chain operations.
• Symbiosis Octopool is a Symbiosis AMM equipped with multiple tokens. The protocol is made up of two Symbiosis octopools on Boba BNB: sStable tokens and sWETH tokens.
• The MulticallRouter controls and examines interactions on Boba BNB (S-chain) within a cross-chain operation when the cross-chain operation is not initiated from the s-chain and when the s-chain is also not the destination.
• Uniswap-like DEX (SIS BNB/ BNB): Symbiosis possesses a Uniswap-like Dex, consisting of a (SIS BNB/ BNB), giving users a platform to trade SIS tokens on the BNB network.

Symbiosis Relayers Network

Symbiosis Relay Network is a peer-to-peer (P2P) network created to boost cross-chain processes. It enhances speed, accuracy, and security while transmitting information for cross-chain operations.

The Relayers Network is tasked with transferring messages and holding instructions for cross-chain operations between blockchains. This is properly executed by equipping each Symbiosis protocol-supported blockchain with a set of deployed smart contracts. Once a cross-chain transaction is triggered, an event is created by the smart contracts, which is then monitored and processed by the relayers in the network.

The relayer network is equipped with a built-in crypto-economic incentive mechanism. It is an off-chain part of the Symbiosis protocol, and it is tasked with providing speedy, accurate, and safe transmission of information about cross-chain operations conducted on the Symbiosis protocol. When functioning, the relayers network is split into four groups:

Source: Symbiosis Documentation

• The Symbiosis Relayers Network: This is a set of all relayers in the network. It is built with the Symbiosis admin setting the maximum number of relayers in the staking contract and the Node runners staking and registering their nodes in the Staking contract.
• The Bootstrap group: This is made up of relayers who provide information on relayers currently connected to the Symbiosis relayers network to new relayers. The relayer software is equipped with a configuration containing default bootstrapping nodes but allows any relayer node connected to the relayers network to serve as a bootstrapping relayer.
• The MPC Group: This group is led by an algorithm that runs on each relayer at the beginning of a specific period. It carries out functions like validating and signing calldata from Oracle requests, sending the signed data to the right blockchain, generating and storing MPC keys, and replacing the MPC key of the previous point stored.
• The Veto Group: This is made up of trusted relayers who must all participate in creating every signature developed by the MPC group. If a group member’s signature is missing, the signature is deemed invalid, and the Symbiosis protocol does not proceed calldata with that signature. The veto in the Symbiosis protocol is by inaction and not by action. This means that the group does not restrict or place a ban by itself; they just do not sign transactions that seem suspicious.

Features of Symbiosis

Symbiosis is built to provide users with a cross-chain platform that seamlessly trades tokens and assets. In a bid to achieve its goals, the platform has equipped itself with the following features.

Total Decentralization

Symbiosis makes use of a Decentralized Autonomous Organization (DAO) framework. This means the protocol functions with no need for a central body or authority. This ensures a smooth-flowing process in executing tasks and transactions and ensures that no single party, body, or individual can stop its functionality or restrict user access.

Interoperability

Symbiosis serves as a link to several blockchains in the world. By creating such a link between blockchains that generate a lot of user traffic, it will be able to create a unified bridge linking major blockchains with each other.

Non-custodial

The platform being non-custodial ensures the security and safety of the user’s assets. The Symbiosis team ensures that the user fund remains secure by ensuring that no one has access to the stored funds, including the Symbiosis members themselves.

Boundless Cross-chain Liquidity

The platform connects several blockchains and builds a truly interconnected DeFi ecosystem that enables users to seamlessly exchange tokens with the most competitive rates for any token possible.

Cross-chain Swaps

With the Symbiosis protocol, users can exchange tokens across different chains. This gives users access to a cross-chain exchange functioning across supported blockchains. It is a simple method for moving the flow of liquidity from one chain to another without losing the value of the asset.

To swap tokens, all the user has to do is go to the Symbiosis app, select swap, and select the token or asset they wish to swap along with the network and the number of units. The next step is selecting the token they want to swap to, and the app will automatically show you how many units of the token you would get after the swap.

Interchain Communication

Symbiosis enables users to supply liquidity to several DeFi protocols all in one transaction. This means Symbiosis functions as an interchain communication protocol, and Cross-chain operations are enabled on the platform through the use of selected transit tokens on supported blockchains.

Farming

Users who provide liquidity through the Symbiosis liquidity program receive rewards for making liquidity available to the Symbiosis liquidity pools. Once a user supplies liquidity to one of the liquidity pools, they become a liquidity provider, granting them access to a share of the liquidity provider fee whenever they choose to withdraw their assets from the pool. The liquidity fee they earn depends on how long their placed assets stay in the liquidity pool.

Symbiosis Octopool

This is an AMM liquidity pool that processes cross-chain operations. It plays a major role in every cross-chain operation. It contains several types of tokens with the same nominal value offering a larger pool of assets than most traditional AMMs at better rates and more stable token prices. The pool allows the swap of any token for another, single-sided liquidity provision/withdrawal, and the addition of new tokens to the existing pool.

What is the SIS Token?

The SIS token is the base token of the Symbiosis Protocol. It was initially deployed on the Ethereum L1 network and can now be bridged to the BNB L1 chain and L2 chains like Arbitrum One, zkSync Era, Linea, and Scroll. When bridging the L2 networks, the official bridges of the networks are used. For example, when zkSync Era is being bridged, the zkSync official bridge is used. When the SIS token is bridged from the Ethereum network to the BNB network, the Symbiosis bridge is used.

• Governance: SIS token holders are able to participate in the decision-making process of the protocol, especially when deciding on matters regarding the protocol DAO.
• Protocol Security: The SIS token is staked to operate relayers, making sure the Symbiosis Relayers Network functions properly and effectively.
• Incentives and Rewards: Users who are active in the protocol are rewarded with SIS tokens as rewards and incentives.

SIS Tokenomics

The SIS token has a fixed market supply of 100 million units and is to be distributed in the following ways:

• Seed Round: 10% of the total supply (10,000,000)
• Private Round: 6% of the total supply (6,000,000)
• Strategic Round: 4.70% of the total supply (4,700,000)
• Public Round DaoMaker: 0.55% of the total supply (550,000)
• Public Round Y: 0.65% of the total supply (650,000)
• Public Round Z: 0.10% of the total supply (100,000)
• Liquidity Farming: 10% of the total supply (10,000,000)
• Node Runners Rewards: 15% of the total supply (15,000,000)
• Protocol Liquidity: 10% of the total supply (10,000,000)
• Relayers Auction: 5% of the total supply (5,000,000)
• Advisory: 5% of the total supply (5,000,000)
• Founders Team: 18% of the total supply (18,000,000)
• Treasury Reserve: 15% of the total supply (15,000,000)

SIS Governance

Symbiosis makes use of a Decentralized Autonomous Organization (DAO), which is a structure that functions without the need for a central authority, decentralizing power and decision-making to the members of the DAO. Only users who have the SIS token can make decisions in the protocol.

To be able to vote, users have to lock up their SIS tokens into a voting escrow. By staking SIS tokens, users earn a veSIS token, which is a token that gives voting power rewards for taking part in the Symbiosis DAO. Each veSIS is synonymous with one vote, and the more a user stakes their SIS token, the more veSIS tokens they earn.

When new proposals are being made on the platform, they are usually published on the Snapshot dashboard. To vote on the proposal, users have to visit the Symbiosis proposal dashboard, connect their wallet to show they possess the voting power, open an active proposal, choose their vote opinion, and finally add a comment. After that, the user confirms their vote using their wallet signature, and their vote is registered. The vote, however, can be changed as long as the proposal is still active.

Conclusion

Like most projects coming up in the industry, Symbiosis aims to boost mass adoption and create a more interconnected industry. Its approach to providing liquidity is a viable solution for users who need quick liquidity, and it also reduces the burden users new to the ecosystem face when trying to navigate the different platforms. Its features and SIS token are key components that make the project one to watch out for.

How to Buy SIS Token

SIS can be purchased on popular exchanges like Gate.io. To trade SIS and your favorite tokens, all you have to do is create a gate.io account and fund the account once the KYC (Know Your Customer) procedure is completed.

Useful References

For the latest updates on SIS, you can visit:

• Official website
• @symbiosis_fi">Medium
• Discord
• Twitter

Take Action on SIS

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