The Future of Cross-Chain Trading: An Analysis of Symbiosis One-Stop AMM DEX

In the rapid development of blockchain technology, interoperability and liquidity issues have always been core challenges faced by the industry. With the emergence of more and more blockchain networks (including Layer 1 and Layer 2) and different virtual machine environments (EVM and non-EVM), both users and developers urgently need a solution that can seamlessly exchange assets across multiple networks.

Symbiosis, as a cross-chain AMM DEX platform, was born to solve these issues. This article will detail the working principles, technical advantages, background information, and its potential value.

The Current Status and Challenges of Cross-Chain Transactions

Before fully understanding the advantages of Symbiosis, we first need to understand the main issues currently facing cross-chain transactions. With the continuous launch of various L1 and L2 public chains, EVM public chains, and non-EVM public chains, more and more projects are choosing to build on different blockchains. However, this diversity has also brought about bottlenecks in interoperability between networks. Although traditional single-chain structures have advantages in security and stability, there are significant limitations in communication and asset flow between chains.

The main problems that most cross-chain projects currently face include:

1. Complex operation: Users often need to go through multiple steps when exchanging assets across different blockchains, involving different wallets and bridging services, which makes the process cumbersome and error-prone.

2. High Costs: Cross-chain transactions involve transaction fees across multiple networks, and these costs can increase significantly, especially during frequent operations.

3. Security Risks: Cross-chain bridges and relay services often become targets for hacker attacks, making fund security difficult to guarantee. Historically, there have been multiple incidents where significant amounts of funds were stolen due to attacks on cross-chain bridges.

4. Cross-chain asset singularity and excessive restrictions: Due to the high costs and complexities of cross-chain technology, most cross-chain projects only support a portion of the assets from a limited number of chains for cross-chain transactions, resulting in excessive restrictions and a poor user experience.

Against this backdrop, Symbiosis offers a more efficient, secure, and user-friendly cross-chain solution.

Core Functions and Technical Architecture of Symbiosis

Symbiosis is a decentralized cross-chain automated market maker (AMM) platform designed to aggregate liquidity across different blockchains, whether they are EVM-compatible or non-EVM-compatible, including the BTC ecosystem.

Through Symbiosis, users can easily achieve token swaps between different networks, completing complex cross-chain transactions in a single operation in the form of Swap. This seamless user experience relies on the unique technical architecture of Symbiosis.

on-chain smart contract

Symbiosis uses on-chain smart contracts to handle the logic of cross-chain transactions. These contracts are deployed on multiple supported blockchain networks, ensuring the decentralization and transparency of cross-chain transactions. Each cross-chain transaction initiated by users is processed through these smart contracts, ensuring the accuracy and security of the transactions.

off-chain relay network

In addition to the on-chain smart contracts, Symbiosis has designed an off-chain relay network. These relayers are responsible for transmitting messages and assets between different blockchains, thereby enabling cross-chain communication. The non-custodial design of the relay network ensures the security of transactions while enhancing their efficiency.

seamless cross-chain exchange

The Symbiosis platform allows users to seamlessly complete cross-chain asset exchanges on a single interface, offering more freedom and flexibility compared to other cross-chain platforms, with support for a greater variety of tokens. Regardless of the type of token users hold or which network these tokens are on, they can easily exchange and transfer them through Symbiosis.

Pool and Zap

Users can provide liquidity and earn rewards on any chain supported by Symbiosis, and can also use the Zap feature to simplify cross-chain and DeFi interactions into a one-stop operation. Any asset on any blockchain can be provided to lending, farming protocols, or Symbiosis Octopools on another blockchain with just one click (one transaction). Cross-chain Zaps currently support multiple mainstream DeFi protocols.

Advantages and Innovations of Symbiosis

The emergence of Symbiosis not only addresses many pain points of current cross-chain transactions but also possesses unique advantages in multiple aspects, making it a future paradigm and leader in cross-chain projects.

high interoperability

Symbiosis supports liquidity for up to 34 blockchains, covering both EVM-compatible and non-EVM-compatible chains, including TRON, TON, a part of the BTC ecosystem, etc., and is the core cross-chain bridge of TON.

Generally, cross-chain projects only support a few types of assets for cross-chain transactions, with many restrictions. Symbiosis supports cross-chain transactions for multiple assets, allowing users to obtain any supported asset. This extensive network support means that users can freely move funds within a broader ecosystem, no longer limited by a single network.

minimalist user experience

Symbiosis presents the cross-chain and Swap processes to users through a simple UI, allowing complex transactions to be completed with just one step. It also supports receiving cross-chain assets by simply entering an address, maximizing user experience.

Users can complete all cross-chain operations on a single interface, without the need for third-party tools or complex bridging services, lowering the entry barrier and helping Web3 to release more liquidity.

The platform's design greatly simplifies the operational process, making cross-chain transactions as easy as single-chain transactions.

strong security

The on-chain smart contracts and off-chain relay networks of Symbiosis are meticulously designed to ensure the security and transparency of cross-chain transactions. The non-custodial architecture further reduces the risk of funds being hacked while also avoiding centralized control of user assets.

Symbiosis has passed multiple security audits from various institutions and plans to conduct more audits to ensure the strongest security.

low cost and high efficiency

The efficient architecture and automated market maker mechanism of the Symbiosis platform reduce the costs of cross-chain transactions and provide faster trading speeds. By aggregating liquidity from multiple networks, Symbiosis is also able to offer users more competitive prices and lower slippage.

Decentralization and Community-Driven

The fully decentralized design of Symbiosis means that all cross-chain transactions are automatically executed by smart contracts, without the intervention of centralized institutions. In addition, Symbiosis encourages community participation by allowing users to play an active role in the platform's development through governance tokens and various incentive mechanisms.

Symbiosis Background Information

Symbiosis supports seamless asset exchanges across 34 blockchain networks, having processed over $2.5 billion in exchange volume, completed over 2.34 million transactions, and interacted with nearly 390,000 wallets.

Symbiosis has been integrated into multiple large aggregators and closely collaborates with several well-known DEX platforms.

Symbiosis has received investments from several well-known investment institutions, as well as funding from multiple mainstream blockchain projects, and serves as a core bridge for a well-known blockchain platform, further enhancing its influence in the cross-chain ecosystem.

governance token SIS

The governance token of Symbiosis is SIS, with a maximum supply of 100 million, 65% of which is already in circulation. SIS can be used on multiple mainstream blockchains and has been listed on over 20 exchanges.

The main functions of SIS include:

• Governance Voting: SIS holders can participate in the decision-making process through voting, especially regarding decisions related to the Symbiosis DAO.

• Protocol Security: SIS is used for relay rewards, ensuring the stable operation of the relay network.

• Protocol Incentives: Earn SIS rewards by participating in Symbiosis activities.

SIS adopts the VE model, and holders who stake SIS receive veSIS and enjoy multiple benefits:

• Symbiosis will distribute a certain amount of airdrops to veSIS token holders (multiple mainstream blockchain projects).

• Voting rights in Symbiosis DAO

• Increase the yield of liquidity supply

• Cross-chain fees can be reduced by up to 60%.

• Staking SIS's native yield

• Other possible rights and rewards

In July, through a DAO vote, a proposal to burn 251,384 SIS tokens was unanimously approved, and the destruction was executed on August 7, accounting for 0.25% of the total supply of SIS.

This burn marks the entry of Symbiosis into a new phase, where the ecosystem will continue to iterate and optimize, incorporating various mechanisms to bring SIS into a deflationary era, enhancing the value of SIS, and further progressing towards Symbiosis v3.

SIS currently has a relatively low market capitalization, and there is still considerable room for growth compared to similar projects. When the market improves in the future, this gap may further widen.

Compared to other competitors, Symbiosis has a lower market value, but its technological maturity and cooperative network give it great potential, making it very likely to be a dark horse in the cross-chain field.

Future Outlook of Symbiosis

Symbiosis, as a leading cross-chain AMM DEX platform, is reshaping the way assets are exchanged within the blockchain ecosystem. Through its unique technological architecture and innovative solutions, Symbiosis is addressing the major pain points in cross-chain trading and bringing more opportunities and possibilities to Web3.

Looking to the future, with the addition of more blockchain networks and the introduction of more sources of liquidity, Symbiosis is expected to further strengthen its position in the Web3 ecosystem and become a leader in the cross-chain technology field. For users and developers who wish to freely move funds between different blockchains, Symbiosis is undoubtedly a platform worth paying attention to and participating in.