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Cross-chain Zaps and Withdrawal to/from Symbiosis Pools
Symbiosis introduces cross-chain liquidity solutions, empowering users with seamless options for liquidity provision and withdrawal: Cross-chain Zaps and Cross-chain liquidity withdrawal.
Symbiosis owns liquidity pools (Octopools) to enable cross-chain operations (swaps, birding, zaps, etc.). Symbiosis Octopools are located Boba BNB: the Symbiosis host chain. Liquidity providers supply assets to these pools and receive rewards for it.
Cross-chain zapping has been implemented to facilitate liquidity supplying to Symbiosis Octopools located on Boba BNB. 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 Boba BNB (Scheme 1).
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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 Boba BNB,
- 3.Supply the sTokens to the Symbiosis Octopool with sStables..
Once the sTokens (sUSDCs in our example) get added to the liquidity pool, the user obtains LP tokens on Boba BNB.
sToken is a type of wrapped token used within the Symbiosis protocol. For more information, please refer to sTokens in Symbiosis
This functionality is in QA and will be available on Mainnet soon.
Cross-chain liquidity withdrawal has been implemented to facilitate liquidity withdrawal from Symbiosis Octopools located on Boba BNB. 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 Boba BNB (Scheme 1). There are two ways to withdraw the assets:
- 1.A common way is to send LP tokens to the pool and get sUSDC tokens on Boba BNB. Then the sUSDC tokens can be bridged to Ethereum, and the user gets USDC tokens (1:1 minus cross-chain operation fee). Although, in some cases, this way can cost less in terms of fees for the cross-chain operations, it requires the user to have Boba tokens to pay transaction fees on Boba BNB and learn what to do with sTokens.
- 2.A cross-chain way is to send a withdrawal request to any blockchain and get USDC tokens on Ethereum (Scheme 2). There is only one requirement: a withdrawal request should be sent from the address that equals the address that owns the LP tokens on Boba BNB.
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Scheme 2. Cross-chain liquidity withdrawal routine.