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What is Symbiosis?

Symbiosis is a decentralized multi-chain liquidity protocol that allows users to trade arbitrary assets between different blockchains while remaining the sole owner of funds. It is closer to Multichain and THORChain, and is a competitor of the two. Symbiosis is interoperable, fully decentralized, and custody-free, offering the best prices for as many token trading pairs as possible, while providing a user experience as simple as Uniswap.

Symbiosis includes three core parts, namely the front end, the cross-chain liquidity engine, and the relay network.

The front end is a web interface or mobile application that helps users earn asset information, build the best transaction path, and help users sign transactions and send transactions to the blockchain.

The cross-chain liquidity engine is a smart contract built on each blockchain supported by Symbiosis, running the aggregated cross-chain liquidity pool and off-chain routing mechanism.

The relay network is a decentralized P2P node network. The relay monitors the events sent by the cross-chain liquidity engine on each network supported by Symbiosis, reaches a consensus, and sends the transaction to the corresponding blockchain. The synergy of the three forms the cross-chain transaction of Symbiosis.

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Cross-chain process

The Symbiosis protocol will comprehensively consider factors such as conversion ratio, fees, and Gas fees to find the optimal conversion path. When performing cross-chain swaps, first convert the assets on the initial chain into stable coins, choose a chain with a lower gas fee to cast and package assets, and perform stable coin exchange (using an algorithm similar to Curve), and finally on the target chain Convert to the desired asset. Symbiosis is currently running on the testnet, which can theoretically support all EVM-compatible L1/L2 blockchains, as well as WASM blockchains such as Solana and Terra. The currently supported testnets include Ethereum (Rinkeby), BSC (Testnet), Polygon (Mumbai), Avalanche (Fuji), Huobi Eco Chain (Testnet) and OEC (Testnet).

Taking the cross-chain transaction of UNI on Ethereum as CAKE on BSC as an example, the route is UNI → USDC → sUSDC → BUSD → CAKE. Because the Gas fee of BSC is lower, sUSDC is minted on BSC and traded into BUSD (instead of converting to BUSD package assets on Ethereum and then cross-chain), and then conduct subsequent transactions. As shown in the figure below, the whole process consists of eleven steps.

• Users choose the assets to be exchanged, from UNI on Ethereum to CAKE on BSC. The protocol comprehensively considers the conversion ratio, fees, gas fees and other factors to find the optimal path, and feeds back the information to users through the front end. User signed confirmations allow Symbiosis to conduct transactions on behalf of the user.

• The front end sends transactions to the original blockchain (Ethereum).

• The agreement represents the user to trade UNI→USDC at the best price. This AMM does not belong to Symbiosis.

• Send USDC to the Portal contract address.

• The repeater listens to cross-chain transaction requests.

• Relays reach a consensus for the transaction request and sign the transaction.

• The relayer sends the transaction request to the target blockchain (BSC).

• The contract on the BSC receives the request information.

• The contract on BSC mints sUSDC 1:1, and exchanges sUSDC→BUSD on Symbiosis’ AMA.

• The Symbiosis agreement represents users to exchange BUSD→CAKE on BSC's AMM at the best price. This AMM does not belong to Symbiosis.

• Deposit CAKE into user address.

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relay network

The Symbiosis Relay Network is a blockchain-agnostic, permissionless P2P network with built-in cryptoeconomic incentives. It is versatile and can be integrated with multiple blockchains at the same time. Anyone can join the relay network and become a relayer by staking enough SIS tokens.

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Comparison of different cross-chain bridges

In terms of security model, Symbiosis, like Multicoin, adopts a distributed threshold signature algorithm based on multi-party security computing. THORChain also adopts a threshold signature algorithm based on Tendermint and Cosmos-SDK. The security schemes of the three are similar. But in the case of fewer Symbiosis participants in the early stage, the overall security is worse than Multichain and THORChain.

In terms of network selection, Anyswap chose Fusion, THORChain has its own chain, and the Symbiosis relay network can be integrated with multiple blockchains.

Token distribution

Token distribution

Symbiosis’ protocol token SIS has a total of 100 million pieces and is deployed on Ethereum. 22% of SIS is used for financing, the seed round valuation is 20 million US dollars, the private equity round valuation is 50 million US dollars, the strategic round is 75 million US dollars, and the final valuation on Bybit Launchpad is 100 million US dollars. It has been launched, according to January 20 Based on daily price calculations, the current valuation is 4.3 times that of Bybit when it was launched.

SIS tokens can be used in the relay network for pledge, incentive and punishment mechanisms. Pledging SIS tokens can become a node of the relay network and participate in the consensus and transaction signing process. As long as 2/3 of the honest nodes can guarantee the integrity of the network safety. Relayers can enjoy staking rewards, which are distributed proportionally according to the workload completed by each relayer in the current Epoch.

At the same time, SIS can also be used for the governance of Symbiosis DAO and treasury.

summary

summary

Symbiosis is a cross-chain liquidity protocol that benchmarks against Multichain and THORChain. It can not only carry out cross-chain assets, but also complete the exchange of different assets. The relay network needs to reach a consensus within the relayers. Symbiosis currently does not plan to make an independent blockchain, but is integrated on multiple other blockchains.

Its technical solution, especially in terms of security, is similar to Multichain and THORChain, but it does not need to use its own token as a transaction medium like THORChain, and can also support blockchains that are not compatible with EVM, and the supported assets are more flexible.

However, the relay network needs to pledge tokens to maintain security, and more than 2/3 honest nodes are required to reach a consensus. The market value of tokens limits the upper limit of network security.