The status quo of asset transferred cross-chain
With the collective explosion of public chains such as Solana, Avalanche and Fantom, the wealth creation effect of the emerging ecosystem is raising its head, and the cross-chain demand for assets from users is rising day by day in order to chase these new wealth opportunities.
Currently, there are two common channels for users to transfer asset cross-chain.
One is to use Centralized Exchanges to lift stable coins or public chain underlying tokens to the target chain. However, from a practical point of view, the current mainstream CEX supports a limited number of networks for stablecoin withdrawal(mainly Ethereum, Tron, BSC, Solana), which cannot cover all ecosystems; and if the public chain underlying tokens are used as the medium, the potential need for multiple exchanges will also cause additional asset depreciation.
The second major channel is cross-chain bridges, including Avalanche Bridge and Optimism Gateway, which are “official cross-chain bridges” led by the original underlying development team, and “third-party cross-chain bridges” with different structures such as Anyswap and cBridge. Compared with CEXs, cross-chain bridge services have many advantages such as broader coverage and more flexible docking, so they have also become the main channel for carrying the current cross-chain flow of funds.
The limitations of some cross-chain bridge services
Compared with centralized service providers, cross-chain bridge services have many advantages such as broader coverage and more flexible docking, so they have also become the main channel for carrying the current cross-chain flow of funds.However, as far as the current cross-chain bridges are concerned, they are unable to provide the best and most satisfactory services to users, as the cross-chain transfer of assets they can provide is still very basic, generally only supporting the cross-chain transfer of single tokens.
In this context, Symbiosis Finance emerged. It offers seamless cross-chain token exchange, i.e. dual service of Exchange + Cross-chain.
Workflow of Symbiosis Finance
We can assume a situation where a user wants to exchange a COMP for a BENQI. when the user initiates this cross-chain transaction via Symbiosis Finance, the contract automatically handles the following transactions.
Symbiosis Finance first searches and compares the quotes of each major DEX on the starting chain (Ethereum) to find the best transaction path for COMP to be transfered to a stablecoin (e.g. USDT) and executes the transaction.
The USDT obtained from the previous exchange step is transferred to the target chain (Avalanche) through a decentralized cross-chain bridge built by Symbiosis Finance.
Search and compare quotes from all major DEXs on the target chain (Avalanche) to find the best trade path for USDT to BENQI and the trade is executed by Symbiosis Finance.
Through such a three-step process, the user can complete the instant exchange from COMP on the Ethernet chain to BENQI on the Avalanche chain at the best price in just one transaction, and the overall operation process will be greatly simplified.
The trend of cross-chain exchange
Looking into the future, multi-chain narrative is already a major trend. Under the general trend, the value of cross-chain bridge, as the bearer of cross-ecological fund flow, will also be raised with the increasingly frequent interactions between ecosystems, which is perhaps the clearest windfall at the moment.