Entangle -Transforming Cross-Chain Liquidity in the DeFi Ecosystem

In this rapidly evolving world of decentralized finance (DeFi), one of the biggest challenges users face is the fragmentation of liquidity across blockchains. Every blockchain operates in its own silo, making it difficult for users to access and utilize their assets across various chains. However, the inception of Entangle is breaking down these barriers by enabling cross-chain liquidity, ushering a new era of seamless DeFi experiences.

The intra-chain and omni-chain liquidity problem

Imagine you have assets on different blockchains, and you're eager to make them work in the world of DeFi. But here’s the catch. Each blockchain operates in its own isolated ecosystem with separate liquidity pools. This means that using your assets on one blockchain can be a breeze, but when you want to jump to another, you face daunting challenges, and the entire process ranging from creating a new wallet to creating assets, can be a headache.

In this section, we will examine the challenges that users and developers encounter in the DeFi ecosystem and how these obstacles can impede the growth and effectiveness of the DeFi space.

1. Siloed & Illiquid Capital across Different Chains: DeFi has evolved on various blockchain networks, each with its own set of protocols, tokens, and liquidity pools. This fragmentation has led to siloed liquidity, where assets and capital are confined to their respective chains. Users who wish to access liquidity on different chains face barriers such as bridging assets, handling different network wallets, and adapting to various protocols. This segregation not only limits the efficient use of assets but also hinders the free flow of liquidity across chains.
2. Capital inefficiency for Liquidity Providers due to Fragmented Ecosystems: Liquidity providers play an important role in DeFi by contributing assets to liquidity pools. However, due to the multitude of chains and protocols, liquidity providers often find themselves managing their assets across different platforms. This fragmentation leads to inefficiencies as they need to split their capital and manage various positions, resulting in suboptimal returns. The absence of seamless cross-chain solutions increases complexity and hinders the ability of liquidity providers to maximize their returns.
3. Lack of Sticky Liquidity Causing Protocols to Struggle with Consistent Liquidity Support: Sticky liquidity refers to stable and consistent liquidity support required for a protocol to function properly. However, without solutions that generate sticky liquidity, protocols often experience volatility in liquidity levels. Users may enter and exit liquidity positions rapidly, reducing the reliability of liquidity provision. This inconsistency impedes the sustainable development of protocols and restricts their ability to generate competitive yields and stable financial services.
4. High Costs and Limitations of Traditional Oracle Solutions, Leading to Centralization: Oracles are needed for bringing off-chain data onto the blockchain, enabling smart contracts to interact with external information. Traditional Oracle solutions, while vital, have limitations such as high costs and possible centralization. The cost of integrating external data into the blockchain could make many DeFi applications economically unviable. Furthermore, relying on centralized oracle solutions goes against the basic principles of decentralization and encourages counterparty risk and control vulnerabilities.

Introducing Entangle

In response to the aforementioned challenges, Entangle is emerging as a comprehensive solution that aims to address the gaps in the DeFi ecosystem.

At its core, Entangle is an oracle-centric sub-layer with an innovative approach. It's not just a platform, It's a handshake between blockchains, allowing you to easily access and use your assets across chains. Whether you're navigating EVM networks like Avalanche, Polygon, Ethereum, and more or exploring layer 2 solutions such as Arbitrum and Optimism, Entangle is the bridge that makes them all feel at home. It involves interchain and omnichain connectivity giving you the freedom to use your assets across the entire DeFi ecosystem.

The Vision: A barrier-free solution for DeFi

Entangle is working towards simplifying DeFi interactions by creating a cohesive framework that connects protocols across different chains. Their goal is to overcome the challenges that currently limit the adoption and growth of DeFi, not just by enabling cross-chain transactions but by enhancing user experiences, improving capital efficiency, and promoting liquidity flow across the chains.

Liquid vaults and cross-chain liquidity

One of the key components of Entangle's mission is Liquid Vaults, which is a groundbreaking idea that transforms liquidity provisioning across different chains. Liquid Vaults are 1:1 cross-chain replications of liquidity provision assets, effectively opening up the ability for users to access liquidity from any chain in a single click. Entangle allows users to use Liquid Vaults as collateral in derivative protocols, increasing their yield potential and providing access to a variety of financial products without the need for bridging or multiple wallets, simplifying the process.

Entangle's Custom Oracle Solution

Entangle understands the importance of Oracles in connecting on-chain and off-chain data. They have created a custom Oracle solution that offers exceptional flexibility and efficiency. The solution operates on an Oracle-Centric Blockchain that utilizes the Tendermint algorithm to ensure consensus between Validators and compatibility with multiple chains. This allows developers and external Dapps to take advantage of the solution's capabilities and process complex information while optimizing costs.

Empowering the DeFi Ecosystem: Statistics Speak Volumes

As of now, Entangle's impact on the DeFi landscape is undeniable:

• Total Volume - $1,913,922
• Total Value Locked (TVL) - $250,011
• Total Deposits - $1,303,754
• Number of Users - 24,325
• Total Sell - $610,168

The statistics demonstrate Entangle's impressive growth within a short period of time, which highlights the project's importance and value within the DeFi space.

Revenue Distribution and Token Utility

Entangle Protocol has a well-designed economic framework that ensures sustainability and encourages active participation from stakeholders. This means that users and investors can expect a stable and prosperous ecosystem that offers incentives for involvement. The revenue generated through the protocol is distributed in various channels, while the native token, $NGL (Entangle Token), plays a central role in enabling and powering the entire ecosystem.

Revenue Sources

The Entangle Protocol derives its revenue from various sources, reflecting the diversity of the ecosystem's activities and applications. These revenue sources contribute to the long-term viability and continued growth of the project.

• Auto-Compounding Fees: One of the revenue streams is derived from the auto-compounding system of Liquidity Pool Assets that back Liquid Vaults. Entangle's auto-compounding system for Liquidity Pool Assets allows users to reinvest earnings and optimize their yield. As a result, a portion of these earnings is set aside as fees for the protocol.
• Trading Fees: Within the Internal DEXes integrated into the Entangle Framework, a 0.25% trading fee is charged when users exchange between Liquid Vaults and USDC. This trading fee contributes to the revenue pool of the protocol.
• Keeper (Oracle) Fees: Entangle's Oracle solution involves participants known as Keepers, who aggregate and verify data for the Oracle Solution. A portion of the fees paid by Distributors (third-party developers) to Keepers is allocated to the protocol, ensuring the self-sustainability of the Oracle ecosystem.
• Blockchain Gas Fees: A portion of the gas fees generated through transactions on the Entangle Blockchain is allocated to the protocol's revenue pool. This helps ensure that the protocol can cover its operational costs and continue to grow and develop.

Entangle Token ($NGL) Utility:

The native token of the Entangle ecosystem, $NGL, plays a key role in shaping the protocol's functionality, incentives, and growth. The token has multiple uses that make it valuable to its holders.

• Staking: Holders of $NGL have the opportunity to stake their tokens as Validators or Delegators on the Entangle Blockchain. By doing so, they actively contribute to the network's security and decentralization and in return, are awarded in the form of additional $NGL tokens.
• Running Keepers: $NGL tokens are used to facilitate the operation of Keepers within the Oracle ecosystem. Keepers play a key role in collecting and verifying data for the Entangle Oracle Solution and are compensated in $NGL tokens for their services.
• Oracle Solution Usage: Participants, including third-party Developers and Dapps, can use $NGL tokens to access and use the Entangle Oracle Solution. This advantage ensures that information flows throughout the ecosystem with mobility and efficiency while also being verifiable.
• Gas Fees: $NGL tokens can be used to pay for gas fees incurred during transactions and interactions within the Entangle ecosystem. The utility of this feature makes $NGL a vital asset for engaging with the protocol seamlessly.

Roadmap

Entangle Protocol's journey is a true testament to their drive to revolutionize the DeFi landscape. With a series of well-defined stages and milestones, Entangle is forging a path towards a barrier-free and interconnected future for DeFi.

Conclusion

In the intricate landscape of decentralized finance (DeFi), Entangle stands out as a beacon of innovation and product simplicity. By addressing the challenges of fragmented liquidity, capital inefficiency, and costly Oracle solutions, Entangle paves the way for a barrier-free DeFi future. Liquid Vaults and cross-chain liquidity would become the keys to unlocking seamless asset movement, while Entangle's custom Oracle solution provides comprehensive and cost-effective data access. As we move towards a user-centric and efficient DeFi ecosystem, Entangle's solutions offer a robust approach.

We invite you to explore Entangle's offerings by visiting the following links below:

• Entangle Whitepaper
• Website