{"id":475532,"date":"2022-07-19T12:35:00","date_gmt":"2022-07-19T09:35:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/liquidity-protocol-uses-stablecoins-to-ensure-zero-impermanent-loss\/"},"modified":"2022-07-19T12:35:00","modified_gmt":"2022-07-19T09:35:00","slug":"liquidity-protocol-uses-stablecoins-to-ensure-zero-impermanent-loss","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/liquidity-protocol-uses-stablecoins-to-ensure-zero-impermanent-loss\/","title":{"rendered":"# Liquidity protocol uses stablecoins to ensure zero impermanent loss"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a22c51b7121c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a22c51b7121c\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/liquidity-protocol-uses-stablecoins-to-ensure-zero-impermanent-loss\/#%E2%80%9D_Liquidity_protocol_uses_stablecoins_to_ensure_zero_impermanent_loss_%E2%80%9C\" >&#8221; Liquidity protocol uses stablecoins to ensure zero impermanent loss  &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Liquidity_protocol_uses_stablecoins_to_ensure_zero_impermanent_loss_%E2%80%9C\"><\/span>&#8221; Liquidity protocol uses stablecoins to ensure zero impermanent loss  &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvMjlhNDRkMGItM2FlMC00YmZmLTk0YmEtZmU2NzUwNzAxMTBmLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-28d77a7a>At a time when the decentralized finance (DeFi) protocols have seen a significant outflow of funds from the market, maintaining liquidity has become even more challenging. Liquidity plays a central role in the DeFi ecosystem, and many protocols over time have come up with various new solutions to keep liquidity pools brimming. The latest trend in the liquidity market is focused on cross-chain solutions.<\/p>\n<p>Many experts believe cross-chain solutions are the future of DeFi, and Symbiosis Finance, a liquidity protocol, has come up with its own stablecoin-based cross-chain liquidity solution. The liquidity protocol uses stablecoins to ensure liquidity providers (LPs) don\u2019t incur any impermanent loss.<\/p>\n<p>Nick Avramov, the co-founder of Symbiosis told Cointelegraph that they have secured initial liquidity from the likes of Binance Labs, Blockchain.com, Amber and a few more and hoping to gain some more LPs once they hit a transaction volume of about $100 million. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Liquidity has driven DeFi\u2019s growth to date, so what\u2019s the future outlook?<\/em><\/strong><\/p>\n<p>Talking about the importance of using stablecoins instead of different crypto assets, Avramov explained that stablecoin use not only helps in eliminating impermanent loss but also ensures seamless transactions across different blockchain platforms. This makes for one-click swaps. Avramov explained:<\/p>\n<blockquote><p>\u201cWe enable native assets swaps, not just pegged illiquid yet-another USDTxyz.\u201d<\/p><\/blockquote>\n<p>Symbiosis Finance supports cross-chain swaps between any blockchain that enables the generation of EdDSA and ECDSA keys. This effectively means anyone can exchange, for example, an ERC-20 token for Solana, Polygon, or other crypto assets developed on the Binance Smart Chain. Talking about the future of Web3, Avramov said:<\/p>\n<blockquote><p>\u201cThe quest of interoperability is vital for further adoption, so cross-chain and multi-chain solutions are the very building blocks of the Web3 economy.\u201d<\/p><\/blockquote>\n<p>The liquidity provider has also paid special attention to the interface to ensure that the user at the front end gets a seamless experience. The protocol eliminates the need for switching between complex virtual networks while performing swaps. All these processes h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>en at the back end using smart contracts.<\/p>\n<p>When asked about the security aspect of the network, given cross-chain platforms have been at the receiving end of miscreants lately, with some of the biggest heists taking place on cross-chain protocols. Avramov said that security is one of their top priorities, and they have already passed multiple audits from established firms.<\/p>\n<p>Symbiosis Finance secured strategic <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.binance.com\/en\/blog\/ecosystem\/binance-labs-makes-strategic-investment-in-symbiosis-finance-421499824684903475\">investment <\/a>from Binance Labs earlier in February this year and launched beta mainnet a month later in March. The protocol has secured multiple partnerships and has seen integration by various platforms.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/liquidity-protocol-uses-stablecoins-to-ensure-zero-impermanent-loss\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Liquidity protocol uses stablecoins to ensure zero impermanent loss &#8220; At a time when the decentralized finance (DeFi) protocols have seen a significant outflow of funds from the market, maintaining liquidity has become even more challenging. Liquidity plays a central role in the DeFi ecosystem, and many protocols over time have come up with&#8230;<\/p>\n","protected":false},"author":1,"featured_media":475533,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvMjlhNDRkMGItM2FlMC00YmZmLTk0YmEtZmU2NzUwNzAxMTBmLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75014,74863,74868,107545,75493],"class_list":["post-475532","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-binance","tag-cryptocurrencies","tag-defi","tag-liquidity","tag-stablecoin"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/475532","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=475532"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/475532\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/475533"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=475532"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=475532"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=475532"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}