Entangle, an innovative omnichain liquidity layer designed to streamline DeFi by breaking down barriers and connecting previously disconnected ecosystems. Our primary objective is to tackle the prevalent challenges of siloed liquidity, yield optimization and scalability that currently hinders both protocols and users.
Why did we create Entangle?
Liquidity serves as the lifeblood of DeFi, and without it, our beloved protocols would cease to exist. As we engaged with various protocols and ecosystems, we identified a significant issue that became increasingly apparent.
Given the multi-chain nature of the crypto ecosystem, protocols employ different blockchains for an array of reasons. One such driving factor is the total value locked (TVL), which essentially represents the pool of funds within a specific ecosystem. Traditionally, TVL has been confined to individual blockchains, limiting users' ability to fully harness the advantages of their preferred decentralized products.
As users of these protocols ourselves, we found this limitation to be profoundly frustrating. Our user experience was hampered by the constraints of liquidity, and as a result, protocols were effectively trapped within these boundaries. We knew there had to be a solution, and that's precisely why we developed Entangle.
Entangle presents a liquidity-centric sub-layer, powered by our oracle-centric blockchain. This innovation leads to the creation of our native dApp, known as Synthetic Vaults. By utilizing Liquid Staking Derivatives (LSDs), Synthetic Vaults facilitate secure, versatile, and composable cross-chain liquidity at scale.
Featuring a user-friendly interface, Synthetic Vaults provide LSDs of liquidity provision assets that can be collateralized for additional use cases, such as borrowing or staking to derivatives protocols. In doing so, Entangle not only achieves capital efficiency for users but also incentivizes sustained liquidity for protocols.
With this comprehensive suite of products, numerous possibilities are unlocked. We facilitate the user and protocol while developing a range of use cases that enhance:
- Liquidity Optimization and Capital Efficiency
- Sticky Liquidity for DeFi Protocols (Secondary Utility of LP Assets)
- Yield Accessibility
- Secure information Aggregation (Entangle Oracle Solution)
The Potential We Bring
While developing Synthetic Vaults, we noticed a consistent issue with existing Oracle Solutions concerning cross-chain interoperability for smart contract automation. None of them adequately addressed our need for seamless and flexible interaction of intricate logic between multiple blockchains in a cost-effective way.
Using current solutions would have required us to pay substantial fees for unique price-feeds on every integrated chain to run our Synthetic Vaults and limit our scalability to other blockchain ecosystems. We would also not be able to execute events on multiple blockchains at the same time with ease, as this would add too much complexity that would ultimately hinder user experience.
Although existing alternatives in the omnichain and oracle sectors are exceptional in their respective markets and excel at their functions, our cost-benefit analysis revealed that they would incur significant expenses for omnichain dApps like the Synthetic Vaults offered by Entangle.
By creating an Oracle Solution based on the Entangle Blockchain, we can store data on-chain, process it, and execute verifiable events as needed, rather than at fixed time intervals, thereby minimizing associated costs.
Additionally, our solution enables simultaneous execution of smart contract automation events across multiple blockchains, which was the primary requirement for our own system. By offering a solution which allows full customization of the keeper configuration, we deliver essential features that were absent in previous one-size-fits-all oracle solutions.This is achieved by allowing users to hire any keeper, whether Entangle or their own.
Recognizing the value of customization, we empower developers to choose any threshold consensus (e.g., 70% of keepers must be correct).
The requirements will dictate the number of keepers you need. A larger number of keepers increases security but at a higher cost, while fewer keepers are more affordable but less secure.
Inspired by the innovation of Proof of Stake (PoS), we have adopted a similar slashing approach to deter bad actors. Keepers must stake a certain amount of $ENTGL tokens to accept jobs, which may be at risk of being slashed if they provide incorrect information (whether to Entangle or external endpoints).
For highly sensitive data, you might require a potential slashing of $10k USD worth of $ENTGL, as opposed to a keeper with only $10 at stake. Decentralization demands strict parameters for financial operations, and we believe our current method achieves this.
This approach enables us to create a developer-centric environment where customization is prioritized, ensuring that protocol requirements remain at the core of our focus.
Our unique oracle-specific blockchain enables the functionality of this infrastructure. The Entangle blockchain is a highly specialized, oracle-centric system designed exclusively for storing information and validating oracle messages within the Entangle Distributed Oracle Solution.
We recognize the significance of ecosystems interacting with one another. That's why Entangle integrates an EVM Module into its blockchain, ensuring a developer friendly environment. This ultimately grants developers the ability to create contracts using Solidity, the pioneer of smart contract language.
Through adopting this approach, we can provide Synthetic Vaults across eight blockchains and expand (currently in testnet), in a cost-effective manner. Unlike leading competitors who impose fixed premiums for their services, we differentiate ourselves by determining fees based on a percentage. This ensures that protocols benefit from a more streamlined experience, enabling them to scale their products with fewer constraints.
By developing a scalable oracle solution focused on omnichain smart contract automation, we believe we are making significant strides in delivering a unique experience. Our native dApp, Synthetic Vaults, marks a turning point in addressing liquidity fragmentation. Users and protocols no longer need to struggle with limited liquidity and the high costs and inefficiencies that come with existing oracle solutions when adopting a multi-chain approach.
Our Oracle Solution effectively provides:
- General Messaging between Blockchains
- Smart Contract Automation
- Omnichain Interoperability
This innovation enables dApps to embrace multi-chain capabilities, facilitating the creation of new bridges or complex logic that relies on event executions across multiple blockchains, such as cross-chain DEXs, Perpetuals, or Options Protocols.
We offer more than just tools; we provide a comprehensive solution to eliminate both intra and cross-chain liquidity fragmentation. Protocols are empowered with sticky liquidity through the secondary utility of our liquid staking derivatives, while users benefit from the yield optimization we deliver.
Where We Fit In
By thoughtfully designing our infrastructure to serve both protocols and users, we believe we have discovered the solution to DeFi's long-standing TVL challenge. The synthesis of assets unlocks a wealth of possibilities, with our primary objective being to enhance your overall experience within ecosystems.
With liquidity being so vital, users are rewarded for providing channels that enable trading and interaction. Typically, users' liquidity is confined to a single protocol, which impacts not only their yield but also the liquidity necessary for protocols to function effectively.
Entangle recognizes the importance of high APYs and the new opportunities and strategies they present. That's why Synthetic Vaults allow you to wrap any yield-bearing asset and create secondary yield farming strategies.
TraderJoe has been a dominant force in the DEX sector with the multi-chain thesis celebrated throughout 2021. By introducing innovative liquidity pooling mechanisms, they are spearheading a plethora of innovative yield strategies. With a variety of pooling options available, users can now enjoy enhanced predictability cross-chain for the returns on their assets.
Have you ever considered the possibilities of turning a single LP asset into a multi-yield generating strategy cross-chain?
Here’s an example of a user journey:
- User obtains TraderJoe LP token and synthesize it via Entangle, which auto compounds and farms the LP token
- User can now take this Synthetic Vault intra or cross-chain to deposit into their favorite Options, Perpetuals, Gambling, Delta Neutra Protocols, Social etc
- User now has secondary utility from their LP asset, supercharging yield whilst providing sticky liquidity to TraderJoe
In essence, you're receiving yield from two sources and providing liquidity for two separate protocols. As long as your collateral maintains its loan-to-value ratio, you'll maintain access to both yields and liquidity provisions.
This approach can also be employed to establish hedges for assets. If you're interested in a new high-APY DeFi protocol for farming but concerned about risk, you can now leverage your Stargate liquidity as collateral. This allows you to deposit and enjoy the high APY rewards while maintaining a safety net through Stargate’s pools.
Just some of the many possibilities we’re enabling at Entangle.
We recognize the challenges protocols face in attracting initial users to their ecosystems. Often, they resort to predatory tokenomics, which ultimately leaves latecomers as bag holders and causes protocol revenue to dwindle.
What if there were a better way for founders to incentivize liquidity? Instead of depleting their token treasury to attract unsustainable users, protocols can now draw sticky liquidity from both intra and cross-chain sources.
Entangle acknowledges the tribal communities formed around different chains. By enabling not only cross-chain but also intra-chain liquidity provisioning, users can now remain loyal to their favorite ecosystems, fostering collaboration and growth.
For instance, as a user of Arbitrum who provides liquidity to your preferred DEX, you now have the option to synthesize that collateral and deploy it into a secondary yield-bearing protocol, such as a delta-neutral asset pool within the same Arbitrum ecosystem. This significantly increases the total TVL within that blockchain while also supercharging your yield as a user.
A Multi-chain Future
It is clear that seamless, secure, and predictable liquidity movement across all chains is crucial for DeFi to achieve its ultimate goal: disrupting centralized custodians by breaking down interoperability barriers. Users shouldn't have to leave an ecosystem specifically designed for decentralization.
With Entangle, anyone can take advantage of secure intra and cross-chain liquidity aggregation through synthetic vaults, all powered by our in-house custom Ethermint based blockchain and oracle solution.
By avoiding the risks associated with physically bridging user assets, we can still grant users access to a wide range of cross-chain yield opportunities across all EVM and non-EVM chains, thanks to our unique strategy!
If you want to be part of our journey in addressing DeFi's most pressing challenge, connect with us on any of our social media channels and speak with our developers about integrating onto our testnet and mainnet.
Entangle: a liquidity-focused sub-layer empowering the infrastructure that drives seamless interoperability for our native application, Synthetic Vaults. With Entangle, we break down the barriers to a thriving DeFi future, crafting composable, secure, and scalable cross-chain applications eradicating siloed liquidity and marginal yields.