☝️sTokens in Symbiosis
The Symbiosis protocol leverages sTokens, a form of wrapped tokens, for seamless cross-chain operations. Discover more about sUSDT, sUSDC, sBUSD, and sWETH in this comprehensive document.
sToken Introduction
The Symbiosis protocol employs sTokens, which stand for synthetic or synthesized tokens. These tokens facilitate cross-chain operations. Despite their resemblance to wrapped tokens, we purposefully refrain from labeling them as such. This distinction ensures they are set apart from the myriad of wrapped tokens prevalent in the DeFi sector.
Choice of Tokens for Synthesis
While Symbiosis has the capability to take any token from one blockchain and mint a synthetic counterpart on another, the protocol primarily engages with a select group: namely stablecoins and WETH (Wrapped ETH).
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.
But why the focus on just stablecoins and WETH? The core objective of Symbiosis is to enable token exchanges across various blockchains. To fulfill this, the protocol prioritizes tokens that maintain consistent value and enjoy wide usage across all supported blockchains. The tokens that meet these criteria are stablecoins and ETH. Here are some restrictions though:
As direct interactions with ETH via smart contracts aren't possible, WETH (Wrapped ETH) is used.
In cases where multiple stablecoins are present on a blockchain, the Symbiosis protocol typically leans towards one, often opting for USDC, BUSD, or USDT, based on the specific blockchain.
sTokens usage
Stablecoins
Let's consider an example: we want to exchange USDC from Ethereum for BUSD on the BNB chain via the Symbiosis protocol.
The simplified algorithm of the bridging stablecoins is shown in Scheme 1 below.
Thus, when sending 1 USDC on Ethereum, we would expect to receive 1 BUSD on the BNB chain in an ideal world without transaction fees or varying exchange rates. However, in reality, the amount received will likely be slightly less than the amount sent.
WETH
If we exchange WETH from Ethereum for WETH on Arbitrum, the bridging procedure will be slightly different: another pool on Boba BNB will be used (Scheme 2).
Thus, when sending 1 WETH on Ethereum, we would expect to receive 1 WETH on Arbitrum in an ideal world without transaction fees or varying exchange rates. However, in reality, the amount received will likely be slightly less than the amount sent.
NB on BOBA BNB chain
Symbiosis uses Boba BNB as a service blockchain: the Symbiosis contracts with mint-burn logic and Symbiosis Octopools are located on that blockchain.
sTokens are used for technical purposes only, and end-users cannot trade sTokens, although they can receive sTokens when adding/removing liquidity to/from Symbiosis Octopool.
There is a user guide for Symbiosis WebApp on sTokens: Bridge with Symbiosis: sUSDC, sBUSD, sWETH
Supported Blockchains
The Symbiosis protocol supports the following blockchains:
Avalanche
Arbitrum Nova
Arbitrum One
Bahamut
Base
Blast
BNB chain
Boba BNB (Symbiosis host chain)
Boba Ethereum
Ethereum
KAVA EVM
Linea
Mantle
Manta Pacific
Mode
Metis
Optimism
Polygon
Polygon zkEVM
Rootstock
Scroll
Telos
Tron
zkSync Era
All cross-chain operations run through Boba BNB: the Symbiosis service chain (S-Chain).
More Information
There is an explanation of how sTokens get minted and burned: Symbiosis Mint-Burn Process
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