Liquidity protocol uses stablecoins to ensure zero impermanent loss

cointelegraph.com:

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.

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’t incur any impermanent loss.

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.

Related: Liquidity has driven DeFi’s growth to date, so what’s the future outlook?

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:

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:

The liquidity provider has also paid special attention to the interface to ensure