At any given time once the decentralized finance (DeFi) protocols have experienced a substantial output of funds in the market, maintaining liquidity is becoming much more challenging. Liquidity plays a main role within the DeFi ecosystem, and lots of protocols with time have develop various new methods to keep liquidity pools brimming. The most recent trend within the liquidity market is centered on mix-chain solutions.
Most professionals believe mix-chain solutions are the way forward for DeFi, and Symbiosis Finance, a liquidity protocol, has developed its very own stablecoin-based mix-chain liquidity solution. The liquidity protocol uses stablecoins to make sure liquidity providers (LPs) don’t incur any impermanent loss.
Nick Avramov, the co-founding father of Symbiosis told Cointelegraph they have guaranteed initial liquidity from the kind of Binance Labs, Blockchain.com, Amber along with a couple of many wishing to achieve more LPs after they hit a transaction amount of about $100 million.
Speaking about the significance of using stablecoins rather of various crypto assets, Avramov described that stablecoin use will not only help to fight impermanent loss but additionally ensures seamless transactions across different blockchain platforms. This will make for just one-click swaps. Avramov described:
“We enable native assets swaps, not only pegged illiquid yet-another USDTxyz.”
Symbiosis Finance supports mix-chain swaps between any blockchain that allows the generation of EdDSA and ECDSA keys. This effectively means anybody can exchange, for instance, an ERC-20 token for Solana, Polygon, or any other crypto assets developed around the Binance Smart Chain. Speaking about the way forward for Web3, Avramov stated:
“The quest of interoperability is essential for more adoption, so mix-chain and multi-chain solutions would be the very foundations from the Web3 economy.”
The liquidity provider has additionally compensated special focus on the interface to make sure that the consumer in front finish will get a seamless experience. The protocol eliminates the requirement for switching between complex virtual systems while performing swaps. Each one of these processes happen behind finish using smart contracts.
When requested concerning the security part of the network, given mix-chain platforms happen to be in the receiving finish of miscreants recently, with a few of the greatest heists happening on mix-chain protocols. Avramov stated that security is among their top priorities, and they’ve already passed multiple audits from established firms.
Symbiosis Finance guaranteed proper investment from Binance Labs earlier in Feb this season and launched beta mainnet per month later in March. The protocol has guaranteed multiple partnerships and it has seen integration by various platforms.