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Symbiosis as Interchain Communication Protocol

Interchain communicating messaging with Symbiosis: adding any assets from one blockchain into lending and farming protocols on other blockchains via cross-chain Zaps.
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​

What is Interchain Communication

The Symbiosis protocol facilitates interchain communication by enabling users to execute cross-contract calls. This allows for seamless interactions with third-party protocols and platforms across various supported blockchain networks.
Implemented cases:
  • Cross-Chain Zap: Users can directly supply assets in third-party protocols across different blockchains, streamlining the investment process.
  • Token Exchange for BTC via ThorChain: The protocol supports exchanging any token from supported blockchains for Bitcoin (BTC) on the Bitcoin network, utilizing ThorChain's functionality for efficient and secure swaps.

Cross-chain Zap into Third-party Protocol

Currently, cross-chain Zaps are supported for:
  • Lending protocols: AAVE,
  • Farming protocols: BEEFY,
  • Liquid staking protocol: LIDO
To enable cross-chain operations the Symbiosis protocol works with chosen transit tokens on every supported blockchain. Please refer to sTokens in Symbiosis for more details.
Transit tokens: WETH and specific stablecoins can be seen as transit tokens in the Symbiosis protocol, since they are used to enable cross-chain operations within the protocol.
Let's consider one example to see how it works: a user has MATICs on Polygon and wants to deposit USDCs to AAVE on Avalanche (the same scheme is used to add liquidity to other protocols). The algorithm of interchain communication is shown in Scheme 1.
Scheme 1. Interchain communication routine with Symbiosis protocol V2.
Important notices for Scheme 1
Steps 2. The Symbiosis protocol implements the on-chain swap on behalf of the user with a DEX aggregator.
Steps 6 and 9. The Symbiosis protocol mints/releases tokens with a ratio of 1:1 and then withholds an amount that equals the transaction processing fee on the current blockchain. For more details on the fee withholding process, please refer to Gas Fees for Cross-chain Operations via Symbiosis​
Step 10. Once the depositing operation is accomplished, the user gets LP tokens or another confirmation about depositing to the protocol to their address on the destination chain.

Exchange for BTC via ThorChain

Scheme 2. Exchanging for BTC via ThorChain
Important notices for Scheme 2
  • Symbiosis uses its interchain messaging functionality to provide liquidity to the ThorChain protocol, enabling users to receive BTC on the Bitcoin networks in exchange for any token on supported networks.
  • Symbiosis utilizes ThorChain smart contracts that accept USDC on both Ethereum and Avalanche networks.
  • When a user opts to exchange tokens on a supported chain, Symbiosis calculates two routes: to Ethereum and to Avalanche. The most efficient route is then displayed to the user.

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