Cross-Chain Zaps

Symbiosis introduces cross-chain liquidity solutions, empowering users with seamless options for liquidity provision and withdrawal: Cross-chain Zaps and Cross-chain liquidity withdrawal.

Curious to see how it works? Check it with Symbiosis WebApp > Cross-chain zaps

Looking for SDKs and API? Check out our documentation for software developers: Developer Tools

Symbiosis owns liquidity pools (Octopools) to enable cross-chain operations (swaps, birding, zaps, etc.). Symbiosis Octopools are on the Symbiosis host chain. Liquidity providers supply assets to these pools and receive rewards for it.

Cross-chain Zaps

Cross-chain zapping has been implemented to facilitate liquidity supplying to Symbiosis Octopools located on the Symbiosis Host Chain. Having any assets on any (supported) blockchain, liquidity providers can supply the assets to this pool via cross-chain zapping in one click (one transaction).

For instance, a user has UNI tokens on Ethereum and adds liquidity to the Octopool with sStables on the Symbiosis Host Chain (Scheme 1).

Scheme 1. Cross-chain Zap routine of adding liquidity to Symbiosis Octopool.

So there is a sequence of steps when doing cross-chain zapping:

1. Exchange the user's assets for stablecoins on the source blockchain,

2. Mint sTokens on the Symbiosis Host Chain,

3. Supply the sTokens to the Symbiosis Octopool with sTokens.

Once the sTokens (sUSDCs in our example) get added to the liquidity pool, the user obtains LP tokens on the Symbiosis Host Chain.

sToken is a type of wrapped token used within the Symbiosis protocol. For more information, please refer to Symbiosis sTokens and Supported Chains

Cross-chain Liquidity Withdrawal

This functionality is in the QA stage and will soon be available on the Mainnet.

Cross-chain liquidity withdrawal has been implemented to facilitate liquidity withdrawal from Symbiosis Octopools located on the Symbiosis Host Chain. A liquidity provider can send a transaction that initiates liquidity withdrawal to any blockchain supported by Symbiosis. When the cross-chain operation of liquidity withdrawal is accomplished, the liquidity provider will receive their assets on the blockchain from which the assets were initially added.

Let's consider a liquidity provider has supplied USDC tokens from Ethereum to Symbiosis Octopool on the Symbiosis Host Chain (Scheme 1). There are two ways to withdraw the assets:

1. The standard procedure involves sending LP tokens to the pool and receiving sUSDC tokens on the Symbiosis Host Chain. Then, the sUSDC tokens can be bridged to Ethereum, and the user receives USDC tokens at a 1:1 ratio minus the cross-chain operation fee. While this method may cost less in terms of cross-chain operation fees, it requires users to have gas tokens to pay transaction fees on the Symbiosis Host Chain and understand how to use sTokens.

2. A cross-chain way is to send a withdrawal request to any blockchain and get USDC tokens on Ethereum (Scheme 2). The only requirement is that the withdrawal request be sent from an address that matches the address owning the LP tokens on the Symbiosis Host Chain.

Scheme 2. Cross-chain liquidity withdrawal routine.

More Information

• For a more detailed explanation, please see Symbiosis Routing Contracts.

• If you are curious to see how it works, try our web-based application: Symbiosis WebApp.