☝️Symbiosis Token Teleport
Symbiosis unveils Token Teleporting, a groundbreaking BaaS (Bridging as a Service) innovation that blends token bridging and cross-chain token exchanges.
Token Teleporting: Introduction
Bridging tokens and Exchanging (or Swapping) tokens are terms often misconstrued as interchangeable. However, token bridging and token exchanging between networks stand apart, despite both facilitating asset movement between different networks.
In bridging, an asset retains its identity and total supply while moving across different networks (often from an L1 to an L2 network). The original asset is typically locked on the source network and then represented (or minted) on the destination network. Bridging is always a cross-chain operation.
Token exchanging involves trading one token for another, potentially spanning different blockchains. It's not about transporting the same asset, but rather acquiring a distinct one. Token exchanging can be on-chain operation and cross-chain operation.
Symbiosis introduces BaaS: Bridging as a Service or Token Teleport. This novel method combines two established strategies for cross-network token movement: token bridging and cross-chain token exchanges. At its core, token teleporting aims to reduce user costs associated with cross-chain and liquidity provider fees, all while ensuring optimal exchange rates.
If you are interested to see how it works, please visit the Token Teleport portal.
Token Teleporting: How It works
Problem to Solve
A token originating on one blockchain network (referred to as Blockchain 0, see Scheme 1 below) can be transferred to other networks (Blockchains 1, 2, 3, and 4, see Scheme 1 below) through a bridging process.
Pros of the Bridging approach
Users can take advantage of different blockchains' unique features without having to rebuy assets on another chain, thus maintaining their investment positions.
Tokens can move between the origin blockchain and any other network that supports the bridge.
The process is established and well-known, generally avoiding security breaches at least for networks and bridges that have been in existence for a significant amount of time and have a track record of reliability.
Cons of the Bridging approach
Bridges introduce additional complexity to transactions and have been identified as potential security risks. They are frequently targeted in significant hacking attempts and exploits, leading to considerable losses. This concern is particularly relevant for newer and unproven solutions in the DeFi sector.
Tokens can only move between the origin blockchain and another network if the bridge between them is supported. For instance, a token bridged from Blockchain 0 to Blockchain 1, and from Blockchain 0 to Blockchain 2, cannot move directly from Blockchain 1 to Blockchain 2.
Bridges may lock tokens for a duration, ranging from a few hours to weeks.
When tokens are transferred from networks with high gas fees (like Ethereum) to ones with lower fees, users may want to avoid returning to the high-fee network for further transactions. However, this is often not possible without first going back to Blockchain 0.
Problem Statement
When a token has been bridged across multiple blockchain networks, it is essential to enable direct transfers between any two of these networks without going to the original blockchain first. This process should optimize for minimal transaction fees and utilize established protocols to reduce security risks.
Solution
When a token has been bridged across multiple blockchains, the Symbiosis protocol enables direct transfers between any two of these networks without going to the original blockchain first. The Symbiosis protocol utilizes its infrastructure, including the core smart contracts and the relayers network, to keep the fees associated with this type of cross-chain operation low.
Let's see how Token Teleport works using SIS token (the token of the Symbiosis protocol) as an example.
Symbiosis minted SIS tokens on Ethereum and then SIS tokens have been bridged to 4 other blockchain networks (see Scheme 2 below).
To enable Token Teleport for the SIS token:
An Octopool with sSIS has been deployed on Boba BNB: the host chain of the Symbiosis protocol.
Some amounts of SIS tokens have been locked on smart-contracts on the corresponding blockchain networks.
A Symbiosis Octopool is an AMM liquidity pool containing several types of tokens of the same nominal value. For more information, please see Symbiosis Octopool
The Symbiosis Octopool with sSIS tokens contains several types of sSIS tokens. Each type of sSIS token represents a SIS token on a corresponding blockchain (Scheme 3):
sSIS for Ethereum represents SIS on Ethereum,
sSIS for zkSync Era represents SIS on zkSync Era,
sSIS for BNB chain represents SIS on the BNB chain.
sSIS for Arbitrum represents SIS on Arbitrum, and
sSIS for Linea represents SIS on Linea.
All these sSIS tokens are minted 1:1 with SIS tokens, so all sSIS tokens in the Symbiosis Octopool have the same face value.
Let's see how Token Teleport works when SIS tokens move from zkSync Era to Linea (Scheme 3).
Important notices for Scheme 3
Steps 2 and 7. In an ideal world, users would receive the same number of tokens on the destination blockchain as they sent from the source blockchain. In reality, users will typically receive slightly fewer tokens than they sent. For more details on the fee withholding process, please refer to Gas Fees for Cross-chain Operations via Symbiosis
Step 8. The Symbiosis protocol sends tokens to the user's address on the destination chain.
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