Symbiosis & Rubic: Ground-Breaking Synergy in Web3

Symbiosis in the Rubic’s Family

Symbiosis was integrated into Rubic in July 2022, and it constitutes a very important part of the Rubic ecosystem. Since then, Rubic has generated more than $3.4M of cross-chain swap volume to Symbiosis. It’s great that our users trust Symbiosis, who are leading in the number of transactions in Ethereum and BNB Chain versus other Rubic providers.

What is Symbiosis?

Symbiosis Finance is a multi-chain liquidity protocol that aggregates decentralized exchange liquidity across all EVM and some non-EVM networks.

Seamless Cross-Chain Interoperability for Web3

The Symbiosis protocol acts as a cross-chain AMM DEX and interchain communication protocol, while meeting the following requirements:

  1. Simple, Uniswap-like user experience
    Symbiosis allows for swapping any tokens across EVM and non-EVM chains in one click. No additional wallets, extra time, or steps are needed.
  2. Interchain communicating
    Users can provide liquidity to lending and farming protocols, or buy an NFT on another blockchain.
  3. Fully decentralized
    No central party can stop the Symbiosis protocol or censor users from accessing it.
  4. Interoperable
    The protocol connects every blockchain that gets enough market attention. The ultimate goal of Symbiosis is to bridge all blockchains together.
  5. Non-custodial
    No one (including the Symbiosis team) has access to users’ funds.
  6. Limitless cross-chain liquidity
    The protocol targets as many token pairs as possible across all blockchains, while providing the best prices for swaps between any token pair.

What’s Behind the Curtains?

  1. The front-end is a web interface or mobile application. It collects information about assets on the blockchains supported by the Symbiosis protocol, builds optimal routes for swaps, and helps users to sign and send transactions to blockchains.
  2. The cross-chain liquidity engine is a set of smart contracts deployed on every blockchain supported by the Symbiosis protocol. It operates concentrated cross-chain liquidity pools and off-chain routing mechanisms, allowing it to tap into AMM liquidity across all blockchains.
  3. The relayer network is a P2P node network of decentralized custodians. The relayers listen to events emitted by the cross-chain liquidity engine on every supported blockchain, reach a consensus on each event, then sign and send transactions to appropriate blockchains.

Cross-Chain and On-Chain Communication

The Symbiosis protocol uses sTokens (a type of wrapped token) to do cross-chain operations.

  • Exchange one asset for another within one blockchain
  • Bridge blockchains to make cross-chain operations possible
  1. Symbiosis chooses a stablecoin on each blockchain supported by its protocol.
  2. For each blockchain pair, sTokens are processed on the blockchain with minimal gas fees.
  1. USDC is chosen on Ethereum and BUSD on Binance Smart Chain
  2. sUSDC is minted on Binance Smart Chain
  3. There is no sBUSD on Ethereum

Supported Blockchains

Let’s have a look at a graph showing how blockchains supported by the Symbiosis protocol interconnect with one another:

  • A node on the graphs is a supported blockchain
  • A link between two nodes means that direct cross-chain swaps are supported for this pair
  1. Ethereum
  2. Binance Smart Chain (BSC)
  3. Polygon
  4. Avalanche
  5. Boba
  6. Telos
  7. Aurora

Wrapped Tokens and End Users

In fact, sTokens are only used for technical purposes. The end users cannot trade sTokens, though they have options on how to make a profit with them:

  • Become liquidity providers and add sTokens to liquidity pools owned by Symbiosis
  • Exchange sTokens for stablecoins on liquidity pools owned by Symbiosis

How Does Symbiosis Handle Cross-Chain Swaps?

The Symbiosis protocol was designed for cross-chain operations, and in the beginning, it carried out cross-chain swaps and bridging. New functions added to the protocol later enabled interchain communicating and cross-chain swaps.

  1. The user signs and sends transaction containing instructions for the Symbiosis protocol.
  2. The Symbiosis protocol swaps UNI for USDC with the 1inch protocol, which guarantees the best price, on behalf of the user.
  3. The Symbiosis protocol locks the USDC in one of its smart contracts: Portal.
  4. As soon as the tokens are locked on Portal, another Symbiosis smart contract, BridgeV2, issues an event which informs listeners that there is a request for a cross-chain swap.
  5. The relayers reach a consensus for this particular event, then sign and send a transaction to the destination blockchain (Binance Smart Chain in this case). More information on the relayers is here:
  6. The Synthesis protocol on BNB receives information about the swap, and mints sUSDC tokens at a ratio of 1:1 to the USDCc deposited on Ethereum (Step 3).
  7. The Symbiosis protocol swaps the sUSDC for BUSD on behalf of the user, in a liquidity pool owned by Symbiosis.
  8. The Symbiosis protocol swaps the BUSD for CAKE on behalf of the user, with the 1inch protocol, which guarantees the best price.
  9. As soon as the swap of BUSD → CAKE is accomplished, the CAKE gets deposited to the user’s address on BNB.
  1. The user signs and sends transactions containing instructions for the Symbiosis protocol.
  2. The Symbiosis protocol swaps the CAKE for BUSD on behalf of the user, with the 1inch protocol, which guarantees the best price.
  3. The Symbiosis protocol swaps the BUSD for sUSDC tokens on behalf of the user, in a liquidity pool owned by Symbiosis.
  4. The Symbiosis contract burns the sUSDC.
  5. As soon as the tokens are burnt, smart contract BridgeV2 on BNB issues an event, informing listeners that there is a request for a cross-chain swap.
  6. The relayers reach a consensus for this particular event, then sign and send a transaction to the destination blockchain (Ethereum, in this case).
  7. The Synthesis protocol on Ethereum receives information about the swap and releases USDC at a ratio of 1:1, to the sUSDC burnt in Step 4.
  8. The Symbiosis protocol swaps the USDC for UNI on behalf of the user, with the 1inch protocol, which guarantees the best price.
  9. As soon as the swap of USDC → UNI is accomplished, the UNI gets deposited to the user’s address on Ethereum.

What are Cross-Chain Zaps?

Symbiosis owns liquidity pools with {stablecoin <> sToken} pairs to perform cross-chain swaps. Cross-chain Zaps have been implemented to facilitate supplying liquidity to these liquidity pools, from blockchains supported by Symbiosis. Graph 3 illustrates an example of the cross-chain Zap routine.

Symbiosis as an Interchain Communication Protocol

One more thing is that with Symbiosis, users can supply liquidity to other DeFi protocols — cross-chain and in one transaction. In this scenario, Symbiosis acts as an Interchain Communication Protocol.

  1. The user signs and sends transactions containing instructions for the Symbiosis protocol.
  2. The Symbiosis protocol swaps the token sent by the user, for the stablecoin used to operate on this blockchain (for USDC, in the example).
  3. The Symbiosis protocol locks the USDC in one of its smart contracts: Portal.
  4. As soon as the tokens are locked on Portal, another Symbiosis smart contract, BridgeV2, issues an event informing listeners that there is a request for cross-chain swapping.
  5. The relayers reach a consensus for this particular event, then sign and send a transaction to the destination blockchain (Binance Smart Chain in this case).
  6. The Synthesis protocol on BNB receives information about the swap for BTC, and mints sUSDC tokens at a ratio of 1:1 to the USDCc deposited on Ethereum (Step 3).
  7. The Symbiosis protocol swaps the sUSDC for BUSD on behalf of the user, in the liquidity pool dedicated for this pair of blockchains and owned by Symbiosis.
  8. The Symbiosis protocol swaps the BUSD for renBTC.
  9. The Symbiosis protocol sends the renBTC to the Ren protocol.
  10. The Ren protocol performs on-chain and off-chain logic that includes burning the renBTC and sending a transaction to the Bitcoin blockchain. As a result, the user gets BTC on the Bitcoin Blockchain.

Future plans

Symbiosis is a project that never stands still, following the market trends and needs. Being a cross-chain AMM DEX and interchain communication protocol in one place, Symbiosis:

  1. Allows users to make cross-chain swaps to any token between EVM and non-EVM chains in one click.
  2. Delivers a one-click experience in providing liquidity to lending and farming protocols, or buying NFTs on other blockchains.

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