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Cross-chain Zaps | Symbiosis

Cross-chain Zaps automate liquidity supplying to the liquidity pools owned by Symbiosis.
Looking for SDKs and API? Please check out our documentation for software developers Symbiosis Developer Tools

Zaps

Zaps are used to add liquidity to liquidity pools or DeFi protocols. A Zap can contain a few on-chain operations packed in one transaction. Zaps are processed by smart contracts that implement Zap protocol functionality.
Without Zaps: While adding tokens to a liquidity pool, users can only add tokens of the type contained in the pool (Scheme 1).
Scheme 1. Adding liquidity to a liquidity pool without Zaps
If the user has another type of tokens (e.g. BNB), the user should swap BNB for DOGE and/or CAKE first on DEXes of the user’s choice and only then add tokens to the liquidity pool.
With Zaps: While adding tokens to a liquidity pool, users can send any token. The source token will be swapped to a needed one and added to a liquidity pool on behalf of the user (Scheme 2).
Scheme 2. Adding liquidity to a liquidity pool with Zaps.
Common Zaps are on-chain operations. If you wants to add liquidity from one blockchain to a liquidity pool located on another blockchain in one transaction, you should use a cross-chain Zap.

Cross-chain Zaps

Symbiosis owns liquidity pools with {stablecoin <> sToken} pairs to perform cross-chain swaps. Symbiosis implemented cross-chain Zaps to facilitate supplying liquidity to these liquidity pools from blockchains supported by Symbiosis. Scheme 3 illustrates an example of the cross-chain Zap routine.
Scheme 3. Cross-chain Zap routine of adding liquidity with Symbiosis protocol.
  1. 1.
    A user can send any token to deposit liquidity on another blockchain.
  2. 2.
    The Symbiosis protocol swaps the token sent by user for the stablecoin used to operate on this blockchain (for USDC in the example). For information on liquidity pools, please refer to Liquidity Pools | Symbiosis
  3. 3.
    The Symbiosis protocol locks the USDCs in one of its smart-contracts: Portal.
  4. 4.
    As soon as the tokens are locked on the Portal, another Symbiosis smart-contract BridgeV2 issues an event informing listeners that there is a request for a cross-chain zap.
  5. 5.
    The relayers reach a consensus for this particular event, sign and send a transaction to the destination blockchain (Binance Smart Chain in this case). More information on the relayers is here Relayers Network | Symbiosis
  6. 6.
    The Synthesis protocol on BNB receives information about the cross-chain zap and mints sUSDC tokens with a ratio of 1:1 to the USDCc deposited on Ethereum (Step 3).
  7. 7.
    The Symbiosis protocol adds the sUSDC to the liquidity pool. Once tokens get added to the liquidity pool, the user obtains LP tokens on BNB. For information on liquidity pools containing sTokens, please refer to Liquidity Pools | Symbiosis
If you are looking for a more detailed explanation of how cross-chain Zaps work, please refer to Metarouter V3 | Symbiosis section Cross-chain Zaps
For information on liquidity pools containing sTokens and third-party liquidity pools, please refer to Liquidity Pools | Symbiosis
If you are curious to see how it works, please try out our Symbiosis WebApp:

Liquidity Withdrawing

Zaps or cross-chain zaps are not participating in liquidity withdrawing. While withdrawing liquidity, a user gets liquidity in the token types contained in the liquidity pool. Liquidity withdrawing is always an on-chain operation (Scheme 4).
Scheme 4. Liquidity withdrawing.
Once the transaction gets executed the user receives DOGEs and / or CAKEs (depending on the user's request and LP settings).

More Information

If you are looking for a more detailed explanation of how it works, please refer to Metarouter V3 | Symbiosis
If you are curious to see how it works, please try out our Symbiosis WebApp: