Symbiosis Finance launches second version of its protocol

The multi-chain liquidity protocol Symbiosis Finance has announced the launch of the second version of its beta mainnet.

The new version of the protocol will overcome the limitations of Symbiosis v1, notably those related to stablecoin liquidity pools.

“In v1, for each pair of networks, a single liquidity pool was needed for direct exchanges. The distribution of liquidity across different pools in the first version of the protocol caused capital inefficiency and a restriction on the number of networks supported,” the developers explained.

In the second version, one of the networks — Boba BNB L2 — became a servicing network. This allowed the above-mentioned issues to be overcome.

v2 supports only a single pool for cross-chain operations between networks. When adding a new network to the protocol, another type of sToken must be added to the existing pool.

Users pay gas fees only on the source chain, not on the destination chain. In some directions, swap speed exceeds v1.

“Overall, the pool efficiency in Symbiosis v2 is much higher, which positively affects the quoted swap price for end users and partners using our SDK/API,” said project representatives.

The second version has undergone a security audit by Zokyo. For some time, the two protocol versions will operate in parallel.

In the coming months, the development team plans to increase the number of supported networks.

Earlier in October, Symbiosis Finance announced a collaboration with Milkomeda.

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