Symbiosis Finance uses Stablecoins to prevent non-permanent losses
The inter-network liquidity protocol pays special attention to the user experience, having a simple user interface without having to deal with complex virtual networks.
At a time when there is a significant outflow of funds from the market in decentralized finance (DeFi) protocols, maintaining liquidity has become an even more difficult task. Liquidity plays a central role in the DeFi ecosystem, and many protocols have come up with various new solutions over time to maintain liquidity pools in full. The latest trend in the liquidity market is focused on inter-network solutions.
Many experts believe that cross-chain solutions are the future of DeFi, and Symbiosis Finance (SIS), a liquidity protocol, has developed its own cross-chain liquidity solution based on stablecoins. The liquidity protocol uses stablecoins to ensure that liquidity providers (LP) will not incur non-permanent losses.
Nikolay Avramov, co-founder of Symbiosis, said that they received initial liquidity from companies such as Binance Labs, Blockchain.com , Amber and some others, and hope to attract a few more Lps when the transaction volume reaches about $ 100 million.
Speaking about the importance of using stablecoins instead of various volatile crypto assets, Avramov explained that the use of stablecoins not only helps to prevent non-permanent losses, but also provides trouble-free transactions on different blockchain platforms and one-click exchange.
"We allow the exchange of native assets, and not illiquids tied to stablecoins like the next USDTxyz," Avramov explained.
Symbiosis Finance supports inter-network swaps between any blockchains, which allows generating EdDSA and ECDSA keys. In fact, this means that anyone can exchange, for example, the ERC-20 token for Solana, Polygon or other crypto assets developed in Binance Smart Chain.
Speaking about the future of Web3, Avramov said:
"The search for interoperability is vital for further implementation, so inter-network and multi-chain solutions are the building blocks of the Web3 economy."
The liquidity provider has also paid special attention to the interface to ensure that the frontend user gets a positive experience. The protocol eliminates the need to switch between different complex virtual networks when performing swaps. All these processes take place on the backend using smart contracts.
Cross-chain platforms have recently become victims of intruders, with some of the largest robberies taking place on cross-chain protocols. When asked about the security aspect of the network, Avramov said that security is one of their top priorities, and the platform's smart contracts have already passed several checks from reputable firms.
In November 2021, Symbiosis Finance announced the closure of a $2 million funding round. Blockchain.com Ventures led the round with the participation of Wave Financial, BTC Inc, KuCoin Labs, Injective Labs, DAO Maker, Primitive Ventures, Kairon Labs, Gate.io andRichard Dye.
In early February of this year, the platform received strategic investments from Binance Labs and launched a beta version of the main network a month later, in March. The Protocol has entered into several partnerships and integrated with various platforms.
https://coin-signal.com/cryptonews/symbiosis-finance-uses-stablecoins-to-prevent-non-permanent-losses/
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