Resolving Liquidity #1: Curvance
At Entangle, we persistently explore fresh opportunities to expand and enhance our ecosystem. Our research and development team is diligently working towards unveiling sophisticated solutions that tackle the fundamental challenges of intra and cross-chain liquidity optimization.
We're thrilled to share our latest integration - an innovative partnership with Curvance. This forward-thinking team is among the first to leverage our cutting-edge synthetic vaults dApp and secure liquid staked derivatives, marking a significant milestone in our journey to reshape the DeFi landscape.
Curvance Integrates With Synthetic Vaults
Curvance, a decentralized stablecoin lending protocol, primarily focuses on Liquidity Providers (LPs) from the Curve, Convex, Aura, and Frax ecosystems. The protocol's primary aim is to optimize yields for users while enhancing capital efficiency via peer-to-peer lending.
It offers the potential for assets like cvxCRV, auraBAL, and yCRV to secure similar APY’s to their platform, while also providing the opportunity to collateralize deposits for safe stablecoin loans. These loan interest rates are determined by a blend of factors such as pool APR, price volatility, token liquidity, and loan-to-value ratios.
Curvance deploys familiar DEFi verticals (see below) in innovative ways to deliver unique value propositions for its users:
Decentralized Lending: The platform features a peer-to-peer lending contract that enables users to supply liquidity, while allowing collateral depositors to borrow stablecoins at competitive market rates.
Token Governance: With the CVE governance token, users can participate in DAO voting, influencing key aspects such as pool gauge weights, collateral eligibility, lending assets, and platform fee rates/distribution.
Liquidity Routing: Deposits made to the Curvance platform are directed to the underlying contracts that yield returns. For instance, cvxCRV deposits would be routed back to Convex Finance, ensuring users' interest rates remain intact while they benefit from the loan services.
Traditionally, DeFi assets have been restricted to a simplistic cycle: deposit into pools, earn APY, but without additional utility. Many users have overlooked this latent limitation, largely due to the lack of awareness of potential secondary uses for their LP assets. However, we envision a different future.
By integrating Curvance into our dApp, our Synthetic Vaults (LSDs of yield bearing assets) infuse new life into the DeFi ecosystem. Lending and borrowing protocols, considered the bedrock of the industry, can now attract additional liquidity whilst enhancing the utility of previously idle LP assets.
This new functionality not only increases liquidity retention for protocols, but also enables users to leverage their assets as collateral. As a result, users are now capital efficient with opportunities to supercharge their yield.
The Future Possibilities
By forging an integration with Entangle, Curvance provides an opportunity for enhanced liquidity retention within the wider ecosystem. This collaboration highlights a secondary function, coupled with an unlocking value for LP assets.
Entangle's native dApp (Synthetic Vaults) proficiently addresses liquidity challenges in ways from both an end user and Defi protocol perspective. In doing so, the Entangle infrastructure ushers a new era in the management of liquidity within DeFi and a wave of new use cases such as leveraged yield farming and structured products!
Curvance is a pioneering decentralized stablecoin lending protocol, initially focusing on liquidity providers (LPs) from Curve, Convex, Aura, and Frax ecosystems. The protocol is designed to optimize yields for users while enhancing capital efficiency via peer-to-peer lending.
A liquidity-focused sub-layer powering capital efficiency and liquidity optimisation. Entangle allows the crafting of composable instruments on secure and scalable cross-chain applications creating a far more fluid and united Defi landscape.