Road to Mainnet: Arbitrum

Learn about Entangle's integration with Arbitrum.

Road to Mainnet: Arbitrum

Entangle, the fully customizable and interoperable data infrastructure, is thrilled to announce a strategic integration with Arbitrum.  

Entangle’s suite of messaging, oracle and liquidity services provide the tools that allow Arbitrum’s robust ecosystem of blockchain builders to flourish, as well as supporting the onboarding of the businesses that value the security and scalability offered by Arbitrum’s Layer 2 blockchain.

Superior Interoperability

Entangle unveils the Photon Messaging Protocol, an enhancement to Arbitrum's forthcoming interoperability features with Ethereum. This development significantly boosts Arbitrum’s functionality. Whether it's ensuring omnichain native asset deployment, smart contract automation or acquiring Web2 data like Real Estate pricing for tokenized Real World Assets (RWA) being built by Centrifuge, the Photon Messaging Protocol guarantees timely and precise data delivery to the relevant dApps.

Entangle’s Photon Messaging Protocol, with its high customizability, empowers developers to innovate and extend the current offerings on Arbitrum, allowing connectivity to any Web3 ecosystem.  It further allows the inclusion of dApps from other ecosystems, where instances can be set up on Arbitrum for users located on Abitrums network. For Web3 to develop, interoperability is key and the photon messaging layer affords developers the flexibility to craft solutions tailored to industry needs as Arbitrum expands into areas such as RWA or liquid restaking Protocols. Emerging sectors like blockchain and the Internet of Things will also gain from the wide-ranging interoperability of this base solution. 

This integration grants Arbitrum protocols a secure, decentralized, and efficient foundation for smart contract automation and cross-chain communication.

Liquidity Sharing Between DApps

A key aspect of this collaboration is Entangle's pioneering dApp, Liquid Vaults. This joint effort introduces Composable Derivative Tokens (CDTs) on yield-generating assets within the Arbitrum Ecosystem. It facilitates liquidity sharing among protocols and offers liquidity providers new refinancing avenues to enhance yields on staked assets across a broad spectrum of DeFi applications, both within Arbitrum and the larger crypto space.

For instance, a user's LP position on Camelot can be converted into a CDT via Liquid Vaults, and subsequently lent on Silo Finance. This enables the user to earn from both their primary LP stake and the loaned assets. 

Entangle's Liquid Vaults not only optimize yield-generating assets but also promote efficient liquidity distribution across the Arbitrum Ecosystem and beyond. This broadens the scope for yield assets, aiding in liquidity retention in DeFi protocols and enhancing capital utilization.

Liquid Vaults also has extendable application to fun and interactive plays such as yield lottery systems or be utilized in other areas of the web3 such as collateral for online gaming or gameFi. The enabling of composability for yield assets across arbitrum opens up the door for optimized liquidity and efficient economics to ensure the zero sum game of liquidity does not intensify at various aspects of market cycles or where one protocol dominates others!

Universal and Customizable Data

Entangle's Blockchain technology streamlines various financial processes and supports emerging Web3 applications – from real estate transactions to loan applications, and holding stocks and bonds. Arbitrum already hosts the innovative Mountain Protocol, a first-of-its-kind institutional-grade, permissionless, and composable yield-bearing stablecoin with robust bankruptcy protection. The momentum for tokenizing traditional financial products and real world assets is expected to surge with wider adoption. Teams like Mountain's will benefit immensely from Entangle's versatile data feeds, fostering development in burgeoning areas like RWA, DePin, AI, and more.

Integrating Entangle’s services enables dApps and developers to generate and receive tailor-made authenticated data feeds from any source unlocks a plethora of use cases and allows developers full customisability and cost efficiency when querying data across any chain or outside of the Web3 realm.  This integration paves the way for a diverse array of applications within the Arbitrum Ecosystem, ranging from interoperable real-world assets to on-chain gaming.

Entangle Universal Data Feeds will equip native Arbitrum protocols like GMX with the necessary tools to diversify into new financial products based on their existing DeFi services. 

This collaboration in conjunction with Photon Messaging, facilitates the creation of omnichain primitives, setting the stage for the next evolutionary phase in blockchain industry development. With our launch, the entire Arbitrum Ecosystem stands to gain from truly customizable data feeds and the extensive interoperability that comes with sourcing information across any supported network.

Forward-Thinking

Arbitrum, a frontrunner in L2 technology, provides an ideal platform for building on Ethereum, catering to the growing needs of both Web2 and Web3 sectors. Its Optimistic Rollup architecture ensures robust security, inherited from the Ethereum network, integral to the Arbitrum Ecosystem. Users also benefit from reduced fees and enhanced scalability. This is crucial for companies turning to blockchain to address contemporary technological challenges, and underscores why many Web3 developers value Arbitrum's familiar EVM environment, which fosters innovative development.

The blockchain and DeFi industries are evolving into a cohesive, interoperable ecosystem where liquidity and authenticated data can fluidly move across chains. The Entangle-Arbitrum synergy marks a significant advancement in this evolution, enriching the functionality of yield-bearing assets and improving blockchain interoperability. This progress, in turn, boosts liquidity and yield opportunities, as well as the composability and customizability of products as the industry progresses towards a more streamlined omnichain future.