Resolving Liquidity #5: SparrowSwap

Resolving Liquidity #5: SparrowSwap

We are exhilarated to announce our partnership with SparrowSwap, an alliance forged from the shared vision of enhancing the decentralized finance landscape.

SparrowSwap, with its successful testnet run, has rapidly ascended to become a premier Decentralized Exchange (DEX) within Sei's burgeoning ecosystem. As the Sei mainnet draws closer, we are eager to facilItate this partnership allowing supercharged yields for Sparrow users and enabling sticky liquidity on their platform.

Entangle Partners with SparrowSwap

SparrowSwap, an upcoming name in the realm of Decentralized Automated Market Makers (AMMs), is akin to the widely recognized UniSwap V2. It simplifies the user experience by enabling liquidity provision without the complexities of concentrated liquidity positions. Additionally, SparrowSwap showcases the versatility to establish both "Constant Product Pools" and "StableSwap Pools".

Constant Product Pools resemble the traditional volatile paired pool, such as SEI/axlUSDC or SEI/ZIO. These pools are designed to accommodate assets predicted to experience considerable volatility.

Conversely, StableSwap Pools are designed for trading between "stable" assets, including stablecoins and liquid staked derivatives (LSDs). Their purpose is to generate a low-slippage trading environment for pairs, reducing drastic volatility or significant price deviations for each asset within the pool.

With Entangle's integration, these assets can be supercharged. We empower you to transform any asset to a transferable LSD through the synthesis of your liquidity pool (LP). Let's illustrate this:

1. User provides liquidity to SparrowSwap (For example SEI-USDC on Sei)

2. User receives LP Token in return

3. User stakes LP Token via Entangle - Entangle stakes and autocompounds the staked LP Tokens

4. Entangle issues the user a collateralised LSD based on provided LP Tokens as a receipt called "Synthetic Vaults"

5. User can obtain capital efficiency by utilizing the LSD of the LP Token, Synthetic Vaults, for further use-cases such as Lending & Borrowing on partner protocols

The Future Ahead

Entangle is driven by the aspiration to Enhance liquidity and capital-efficiency for DeFi within the Sei Network. SparrowSwap is slated to be a significant player in this vision we see a number of technical synergies resulting in wider utility for users.

By allowing Sparrow users to obtain composable LSDs, capital efficiency is increased both intra and cross-chain.  

About SparrowSwap

SparrowSwap stands as a leading decentralized Automated Market Maker (AMM. It features both constant and stable liquidity pools, thereby providing its users with the flexibility they need when contributing liquidity. With an ambitious vision, SparrowSwap aims to position itself as the central trading and liquidity hub within the dynamic Sei ecosystem.

About Entangle

Entangle is an omnichain dApp chain that aims to consolidate fragmented liquidity and unlock the value of yield-bearing assets through liquid staked derivatives. Entangle employs a unique oracle solution to enable cross-chain smart contract automation.