🟧Symbiosis Octopools
Symbiosis Octopool is an AMM liquidity pool that facilitates cross-chain operations.
Introducing Octopool
The security audit of Symbiosis Octopool can be found in our collection of Security Audits of Symbiosis
A Symbiosis Octopool is an AMM liquidity pool containing several types of tokens of the same nominal value. The pool design allows for:
No Token-Pair Constraints: Any token can be exchanged for another within the pool without being limited to specific token pairs.
Single-Sided Liquidity Provision/Withdrawal: Liquidity can be added or removed from the pool with a single type of token, instead of needing to supply or withdraw a pair of tokens.
Addition of New Tokens: New tokens can be added to the existing pool, provided they are of the same nominal value as the tokens already in the pool.
The design of the Symbiosis Octopool ensures that token exchanges within the pool are executed efficiently, maximizing the use of the pooled capital.
The Symbiosis protocol uses Octopools to facilitate cross-chain operations.
Tokens in Octopools
sToken: sToken is a type of a wrapped token used within the Symbiosis protocol to perform cross-chain operations. For more information about sTokens, please refer to sTokens in Symbiosis
Symbiosis core smart contracts that implement mint/burn functionality are located on Boba BNB as well.
Symbiosis operates several Octopools, all of them are located on the Symbiosis servicing chain: Boba BNB.
Each Octopool contains several types of sTokens of the same nominal value bridged from supported blockchain networks:
Stablecoins: Octopool with synthesized stablecoins or sStables, containing sUSDC, sUSDT, sUSDC.e, sRUSDT, sUSDbC, sUSDt.
WETH: Octopool with synthesized WETH tokens or sWETH.
WBTC: Octopool with synthesized wBTC tokens or sWBTC, containing sWBTC, sWRBTC, sBTCB, sCOREBTC
SIS: Octopool with synthesized SIS tokens or sSIS
LADYS: Octopool with synthesized LADYS tokens or sLADYS
Octopools 1, 2, and 3 are used to exchange any tokens between supported chains.
Octopools 4 and 5 are used to exchange SIS and LADYS tokens only between chains where the tokens are bridged.
All sTokens are minted 1:1 to corresponding tokens on corresponding chains and added to Octopools with corresponding sTokens: sStables, sWETH, sWBTC, etc.
Octopools for General Routing
Octopools with sStables, sWETH and sWBTC are used for general routing: to exchange any tokens between supported chains. Let's see how it works.
Cross-Chain Token Swaps via Octopools
Symbiosis always routes cross-chain swaps through an Octopool. For instance, moving from Chain 2 to Chain 1 or Chain 3 can be achieved by using USDC/USDT and the sStables Octopool. Similarly, swaps from Chain 2 to Chain 3 can utilize WETH tokens and the Octopool with sWETH tokens.
Multiple Routes
When multiple routes are available for a given blockchain network pair, the optimal route is selected. For example, moving from Chain 2 to Chain 3 can be done using either stablecoins or WETH. The optimal route is a sequence of swaps that results in the maximum number of tokens received on the destination network for a given blockchain network pair and token pair.
No Direct Route
If there is no common Octopool for a given blockchain network pair, it indicates that direct token cross-chain operations are not supported. For example, moving from Chain 1 to Chain N is not possible, since Chain 1 only supports USDC and Chain N lacks stablecoins used for cross-chain token exchanges within the Symbiosis protocol. Users can still perform the swap between the chains in two steps: first, they can move from Chain 1 to Chain 2 using the sStables Octopool, and then from Chain 2 to Chain N using either the sWETH or sWBTC Octopool. Symbiosis does not support such complex cross-chain operations within a single transaction.
Third-Party Liquidity Pools
Symbiosis only owns and supports Octopools. If either the source or destination token of a cross-chain operation differs from the tokens used by Symbiosis, the tokens will be swapped in third-party liquidity pools via decentralized exchange (DEX) aggregators.
Please refer to Symbiosis Routing Contracts for a comprehensive explanation on how Symbiosis handles cross-chain operations.
Octopools with Specific Tokens
There are several Octopools that contain specific, not well-distributed, and commonly used tokens such as sSIS, sLADYS, etc.
Let's examine the purpose of such Octopools using the example of the SIS token, the governance token of the Symbiosis protocol.
SIS tokens were minted on Ethereum and then some SIS tokens have been bridged to five other blockchain networks (see Scheme 2 below).
When a token has been bridged across multiple blockchain networks, direct transfers between any two of these networks are not possible without going to the original blockchain first.
The Octopool with sSIS tokens is used to enable cross-chain operations for the SIS token for any blockchain network pair where the SIS token is present.
If the source and destination tokens of a swap are SIS tokens, the Octopool with sSIS is used to perform the operation. This optimizes transaction fees and exchange rates for cross-chain operations that evolve SIS tokens.
Symbiosis Octopool Token Details
sToken is ERC20 standard. The pool LP token is ERC1155 standard.
Decimal values are in the 18th digit.
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