Tag: Token Swaps

Symbiosis Integrates zkSync to Enhance Token Swaps

by Blockchain News

Symbiosis, a cross-chain automated market maker, has recently integrated zkSync, a layer-2 scaling protocol, to enhance the speed and reduce the fees of token swaps on its platform. The integration allows users to make any-to-any native asset swaps across Ethereum Virtual Machine (EVM) and non-EVM networks without having to switch between different wallets and interfaces.

The decentralized exchange (DEX) was launched in March 2022 and has already processed over $100 million in total transaction volume in stablecoins. It offers single-sided stablecoin pools that provide zero impermanent loss to liquid providers and facilitates “any-to-any” native asset swaps on its platform.

The integration of zkSync aims to make liquidity transition to and from zkSync “secure, fast and cheap.” It also expands the variety of token swaps through the DEX, supporting any-to-any native swaps to and from zkSync. This additional functionality enhances the user experience of value-added services built on top of Symbiosis.

According to Simeon Avramov, co-founder of Symbiosis, layer-2 scaling protocols like Optimistic and ZK-rollups are crucial for various decentralized finance (DeFi) platforms and services. They are lowering the entry barriers in terms of the price per swap and user experience of value-added services built on top. Avramov believes that zero-knowledge rollups could outcompete Optimistic Rollup solutions like Arbitrum and Optimism.

Avramov also emphasizes the importance of cross-chain players and interoperability layers to support zero-knowledge solutions as soon as possible. “ZK represents an inevitable and natural evolution among scaling solutions,” he said.

The integration of zkSync is a significant development for Symbiosis, as it will enhance the speed and reduce the fees of token swaps on its platform. This will attract more users and provide a better user experience. Symbiosis serves over 12,000 unique wallet addresses and has an average of 3,000 daily transactions.

Moreover, the scaling technology is not limited to Ethereum or other smart contract blockchains. The Swiss-based nonprofit ZeroSync Association is currently developing zero-knowledge proof tools that will allow Bitcoin (BTC) users to expedite the process of verifying individual blocks and, eventually, the entire blockchain.

In conclusion, the integration of zkSync is a significant milestone for Symbiosis, as it enhances the speed and reduces the fees of token swaps on its platform. It also expands the variety of token swaps and improves the user experience. The use of zero-knowledge proof technology in scaling solutions is an inevitable and natural evolution, and it is crucial for cross-chain players and interoperability layers to support zero-knowledge solutions as soon as possible.

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OlympusDAO developer launches protocol enabling one-to-one stablecoin swaps

by Cointelegraph

A developer working on DeFi darling OlympusDAO has launched a new protocol that seeks to facilitate stablecoin swaps without price curves.

On Tuesday, OlympusDAO developer “Ohmzeus” announced they had launched an experimental project dubbed Range that is comprised of decentralized stablecoin pools that do not use price curves. The programmer described Range as an “optimistic stablecoin swap protocol” designed to “abandon a pricing curve altogether.”

The protocol uses “Range pools,” which assume that both of the tokens in a pool are worth an equal value. There are currently six live pools for DAI, LUSD, FRAX, USDC, USDT and MIM, though the developer has emphasized that they are unaudited and users should not deposit more than they can afford to lose.

On Discord, they noted that deposits to the USDC/USDT pool have been suspended due to a decimal place error.

Tokens trade within a pre-defined range in the protocol. In the example of a Range 20/70 pool in which DAI is one of the pairings, Ohmzeus stated that as the range for the stablecoin in the first pool is set to 20% to 70%, DAI must comprise at least 20% of the pool and not exceed 70% — with any attempted trade outside of those limits being rejected.

The protocol’s maintenance of price parity between stablecoins appears to offer arbitrage opportunities to users as stablecoins rarely trade at exactly equal value on centralized trading venues and decentralized exchanges.

Ohmzeus claimed the system offers a number of advantages over swapping stablecoins using traditional automated market makers, citing one-to-one stablecoin swaps, low gas fees and capital efficiency. They commented:

“My expectation is that (at least early on) the pool swings from range extreme to range extreme as the pooled tokens fluctuate around peg. This should produce heavy fee volume from arbitrage.”

Related: Olympus DAO chases a new ATH after fresh bond offerings and partnerships

Ohmzeus suggests that Range could be used to mobilize stablecoin reserves held by decentralized autonomous organizations (DAOs), noting the protocol enables OlympusDAO to “productively deploy its reserves in an isolated environment where its exposure to different assets is defined and controlled.”