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Symbiosis as Interchain Communication Protocol

Cross-chain zaps automate liquidity supplying to the Symbiosis liquidity pools, DeFi protocols, NFT, etc.
Looking for SDKs and API? Please check out our documentation for software developers Symbiosis Developer Tools

What is Interchain Communicating?

With Symbiosis users can supply liquidity to other DeFi protocols. Yes, it's cross-chain and in one transaction. So, Symbiosis acts as an Interchain Communication Protocol here.
Currently, you can cross-chainly add tokens to the following lending and farming protocols:
  • Aave, BENQI, C.R.E.A.M.
  • Beefy
We are constantly adding new protocols to support interchain communicating.
Let's consider one example to see how it works: a user has UNIs on Ethereum and wants to add BNBs to C.R.E.A.M. on Binance (the same scheme is used to add liquidity to other protocols).
The algorithm of this interchain communicating is shown in Scheme 1. An explanation follows Scheme 1.
Scheme 1. Symbiosis Interchain Communication Protocol routine
  1. 1.
    A user can send any token to deposit to a lending or farming protocol on another blockchain. What token should be deposited is specified in the transaction as well.
  2. 2.
    The Symbiosis protocol swaps the token sent by the 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 interchain communicating.
  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 interchain communicating message and mints sUSDC tokens with a ratio of 1:1 to the USDCc deposited on Ethereum (Step 3).
  7. 7.
    The Symbiosis protocol swaps the sUSDC for BUSDs on behalf of the user on the liquidity pool dedicated for this pair of blockchains and owned by Symbiosis. For information on liquidity pools containing sTokens, please refer to Liquidity Pools | Symbiosis​
  8. 8.
    The Symbiosis protocol swaps the BUSDs for the tokens that should be deposited to the third-party protocol (C.R.E.A.M. in the example).
  9. 9.
    The Symbiosis protocol sends the tokens obtained in the previous step to C.R.E.A.M.
There are two cases while doing interchain communicating:
  • Case 1: Interchain communicating from a blockchain with a high gas fee to a blockchain with a lower gas fee (low/high in the USD equivalent),
  • Case 2: interchain communicating from a blockchain with a lower gas fee to a blockchain with a high gas fee (low/high in the USD equivalent).
We explained case 1 in Scheme 1. For a more detailed explanation of both cases, please refer to Metarouter V3 | Symbiosis sectionInterchain Communicating​
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:

Exchanging for BTC

Symbiosis uses the Ren protocol on BINANCE and POLYGON to perform cross-chain exchanges for BTC. When the Ren protocol receives renBTCs, it burns them and sends BTCs to the user's address on Bitcoin Blockchain.
Symbiosis acts as the Interchain Communication Protocol exchanging tokens for BTCs. Scheme 2 below shows the routine while exchanging any token (UNI on Ethereum in the example) to BTC.
From the user's point of view, just one transaction is sent to the blockchain, where the user has tokens to exchange.
Let's consider one example to see how it works: a user has UNIs on Ethereum and wants to swap them for BTCs).
The algorithm of this interchain communicating is shown in Scheme 2. An explanation follows Scheme 2.
Scheme 2. Exchanging for BTC with the Ren Protocol.
  1. 1.
    The user signs and sends transaction containing instructions for the Symbiosis protocol. Please refer to Developer Tools for more information.
  2. 2.
    The Symbiosis protocol swaps the token sent by the user for the stablecoin used to operate on this blockchain (for USDC in the example).
  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 cross-chain swapping.
  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 swap for BTC and mints sUSDC tokens with a ratio of 1:1 to the USDCc deposited on Ethereum (Step 3).
  7. 7.
    The Symbiosis protocol swaps the sUSDC for BUSDs on behalf of the user on the liquidity pool dedicated for this pair of blockchains and owned by Symbiosis.
  8. 8.
    The Symbiosis protocol swaps the BUSDs for renBTCs.
  9. 9.
    The Symbiosis protocol sends the renBTCs to the Ren protocol.
  10. 10.
    ​The Ren protocol performs on-chain and off-chain logic that includes burning the renBTCs and sending a transaction to Bitcoin blockchain. In the result the user gets BTCs on Bitcoin Blockchain.
There are two cases while doing interchain communicating:
  • Case 1: Interchain communicating from a blockchain with a high gas fee to a blockchain with a lower gas fee (low/high in the USD equivalent),
  • Case 2: interchain communicating from a blockchain with a lower gas fee to a blockchain with a high gas fee (low/high in the USD equivalent).
We explained case 1 in Scheme 2. For a more detailed explanation of both cases, please refer to Metarouter V3 | Symbiosis sectionInterchain Communicating​
If you are curious to see how it works, please try out our Symbiosis WebApp (the Swap and Zap tabs):

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