What Is Cross-chain Zap?
Ever wanted to add liquidity to a liquidity pool using a single asset on a different blockchain? You’re not alone. While the regular practice is to swap half one asset for the other before adding to the liquidity pool, zaps remove that inconvenience. And you can add liquidity across chains in one transaction.
With the cross-chain zap on Symbiosis, you can add liquidity using a single asset. The zap functionality of the protocol executes the swap on your behalf, automating the process so you don’t have to do it yourself.
Using the Cross-chain Zap on Symbiosis
As earlier reiterated, a cross-chain zap lets users add liquidity to pools using a single asset. On Symbiosis, you can add liquidity to anyone across an avalanche of supported chains. For instance, you can add liquidity to a BNB pool on the BNB chain using USDC on an Ethereum chain. Symbiosis’ zap lets you do exactly that. Here’s a simple guide to help you do that on the Symbiosis protocol:
- Link up
Connect your wallet to the Symbiosis dapp here: https://symbiosis.finance. You should visit the Symbiosis protocol using the dapp browser section of a supported crypto wallet application.
To connect your wallet with the application, you have to click the wallet logo at the top right corner of the dapp. This brings up a list of supported wallets. Select yours from the list and you’re in.
2. Zapping is the way
Next, you have to select the cross-chain zap service from the list of options. Click the menu button (denoted by the two horizontal lines) at the top left corner. This should reveal an array of options including swap, zap, farm, and pool. Select the zap option to commence cross-chain zap operation.
3. Pick your asset
Asset conversion follows. You have to select the asset to be added and put in the amount to be added. On Symbiosis, you get access to a wide array of public chains, including Telos, Avalanche, Ethereum, BNB Chain, Polygon, Aurora, and Boba. Just about all tokens on these chains can be used to add liquidity through the Symbiosis zap service.
4. Destination liquidity pool
Once you have decided on the asset to be used in adding liquidity, the destination pool is next. You have to select what pool you intend to add liquidity to. Symbiosis requires users to confirm the zap type. The zap types on Symbiosis include Lending protocols, native, symbiosis pools, and farms. Selecting a zap type helps in narrowing down the options, so you don’t have to waste time scanning multiple pool options.
Selecting the zap type and the chain brings up the available pools, APY, token, and balance. You can then proceed to click your preferred pool. Of course, your choice of zap type determines the options you get.
5. Price impact
Cross-chain zap transactions aren’t complete without analyzing the price impact of the process. When adding liquidity through zap on Symbiosis, you get to see the price impact for that specific transaction as soon as you enter the asset value. Your decision to proceed is largely dependent on how comfortable you’re with the figure displayed. If it’s too high, you can always abort the transaction.
6. Choose your tolerance level
Slippage tolerance shouldn’t be ignored. While you can always settle for the pre-set options, there’s the opportunity to personalize the slippage tolerance for your zap transactions. You should press the settings button and enter your slippage tolerance in the space provided.
7. Trade deadline saves time
If you’re looking to complete a cross-chain zap transaction within a specific timeframe, using the trade deadline section is the way to go. A side trip to the setting section should reveal the trade deadline option. You can set a time limit for zap transactions to be concluded else they are aborted.
8. Adding liquidity
Once you’re satisfied with all parameters, you are expected to add liquidity to your selected pool. Again, you will need to understand that certain fees such as deposit fees and liquidity providers fees will take a bit of your asset value. You have to study those fees thoroughly to ensure it’s something you can deal with.
If you’re satisfied with everything, you can proceed to click the ‘add liquidity’ tab, which converts your initial token to the selected liquidity pool tokens.
With the cross-chain zap feature on Symbiosis, liquidity provided across public chains just got easier with unprecedented APRs. The days of swapping half an asset to others before providing liquidity on a protocol are over. Using the cross-chain zap on Symbiosis, you can add liquidity to different public chains without having to worry about some vulnerable bridge.
To learn more about Symbiosis, feel free to follow their official websites below:
🌐 Website: https://symbiosis.finance