Entangle: Unraveling the Future of DeFi with Cross-Chain Interoperability
Introduction
The decentralized finance (DeFi) space has witnessed remarkable growth over the years, yet it still faces significant challenges such as siloed capital, capital inefficiency for liquidity providers, and a lack of sticky liquidity. These barriers hinder the mass adoption of DeFi applications, creating a need for innovative solutions that can break down these barriers and pave the way for a more inclusive and seamless DeFi ecosystem.
Entangle, a pioneering DeFi project, envisions a future where protocols on every blockchain are interconnected, simplifying the complexities of DeFi for both users and developers. Through its interoperable cross-chain liquidity sub-layer and custom oracle solution, Entangle introduces a revolutionary dApp called Synthetic Vaults, which unlocks a myriad of possibilities for liquidity provision and capital efficiency in the DeFi landscape.
The Power of Synthetic Vaults
At the heart of Entangle’s innovation lies the Synthetic Vaults, a game-changing concept that empowers liquidity position assets on any blockchain to be accessible from any other chain with a single click. These Synthetic Vaults act as 1:1 cross-chain replications of liquidity provision assets, allowing them to be staked as collateral in derivative protocols, such as perpetuals or options, across various blockchains.
The benefits of Synthetic Vaults are twofold. Liquidity providers enjoy enhanced yield by staking their assets as collateral, while derivative protocols gain access to an expanded pool of cross-chain liquidity, enabling a new world of use cases for DeFi applications.
Solving the Challenges of Siloed Liquidity and Capital Efficiency
Entangle recognizes the pressing issue of siloed liquidity, wherein users face numerous obstacles when trying to provide liquidity to different protocols on various chains. Synthetic Vaults eliminate these hurdles by enabling users to seamlessly provide liquidity to any protocol on any chain from their base chain, without the need for multiple wallets, RPC networks, or bridging assets.
Furthermore, Entangle’s solution improves capital efficiency by allowing Synthetic Vaults to be “recycled” and staked in derivative protocols, generating additional revenue for liquidity providers and bolstering liquidity for cross-chain use cases. This approach not only benefits users but also incentivizes protocols to attract more liquidity, creating a self-reinforcing cycle of liquidity provision.
The Entangle Oracle Solution: A Bridge to the Future
To ensure the security and reliability of its dApps, Entangle employs a custom Oracle Infrastructure validated on an Oracle-Centric Cosmos based Blockchain. This Oracle Solution is not only utilized by Entangle’s native dApps but is also offered to external developers and protocols. It addresses the current challenges associated with oracles, such as inaccessibility on multiple chains, lack of flexibility in information processing, and high costs leading to reliance on centralized scripts.
By hosting the Oracle Solution on a Cosmos-based blockchain with EVM compatibility and IBC transferability, Entangle takes a flexible and customizable approach, allowing developers to tailor the logic and parameters of the oracle to suit their specific needs. This unlocks a wide array of possibilities for complex information processing and data accessibility, marking a significant step towards a more inclusive and decentralized DeFi ecosystem.
Embracing the Future of DeFi
Entangle caters to a diverse audience in the DeFi space, from DeFi natives and new users to layer1 and layer2 projects, DEXes, protocols, and developers. By providing a user-friendly interface through the “Internal DEX,” where users can easily exchange between USDC and Synthetic Vaults, Entangle ensures a seamless and accessible experience for all users, regardless of their expertise level.
Conclusion
Entangle is at the forefront of the DeFi revolution, offering a groundbreaking solution to the challenges that have plagued the industry for years. By introducing Synthetic Vaults and an interoperable cross-chain liquidity sub-layer with its custom oracle solution, Entangle aims to create a barrier-free DeFi future, fostering capital efficiency, sticky liquidity, and user-friendly experiences. Embracing the possibilities of cross-chain interoperability, Entangle paves the way for a more inclusive and prosperous DeFi ecosystem that has the potential to transform the financial landscape as we know it.