Entangle: oracle-centric omni-chain liquidity layer and Liquid Vaults
Thread948 words
Explains Entangle's oracle-centric blockchain, customizable oracle consensus, Photon cross-chain messaging and Liquid Vaults that tokenize LP positions. Argues NGL launches at a low USD 45m valuation versus other interop tokens.
Key claims
NGL launching at a valuation of only USD 45m
Transmitters stake NGL and can be slashed for incorrect data
Liquid Vaults live across eight chains (testnet)
Liquidity is the life-blood of DeFi. 🩸
With a fragmentation of liquidity & users across an increasing number of L1s & L2s, seamless cross-chain liquidity access is key. 🌐
There is a protocol solving this while optimizing yield & improving scalability! ✨
Enter @Entanglefi 🧵
/1 Today I will walk you through:
▶️ What is Entangle?
▶️ Entangle's Oracle Solution
▶️ EVM Integration
▶️ Entangle Web2 Feeds
▶️ Entangle Price Feeds
▶️ Cross-Chain Messaging
▶️ The NGL Token
▶️ How Entangle Changes the Game
▶️ Bonus Alpha
▶️ Bonus Alpha 2
/2 ✨ What is @Entanglefi?
@Entanglefi is an innovative omni-chain liquidity layer.
It's designed to streamline DeFi by breaking down barriers and connecting previously disconnected ecosystems.
/3 It tackles the prevalent challenges of:
▶️ Cross-chain composability
▶️ Siloed liquidity
▶️ Yield optimization
▶️ Scalability
/4 @Entanglefi's liquidity-centric sub-layer is powered by an oracle-centric blockchain.
It is designed exclusively for storing information and validating oracle messages within the Entangle Distributed Oracle Solution.
/5 Entangle's highly specialized, oracle-centric system provides the necessary infrastructure for:
▶️ General Messaging between Blockchains
▶️ Smart Contract Automation
▶️ Price-Feeds
/6 This enables cross-chain DEXs, Perpetuals, or Options Protocols.
It is also the basis that of @entabglefi's native dApp, known as Liquid Vaults, which marks a turning point in addressing liquidity fragmentation.
/7 Thanks to the native oracle integration, users & protocols no longer need to struggle with limited liquidity or the high costs & inefficiencies that come with existing oracle solutions.
/8 Utilizing Liquid Staking Derivatives (LSDs), Liquid Vaults facilitate secure, versatile & composable cross-chain liquidity at scale.
/9 Featuring a user-friendly interface, Liquid Vaults provide staking derivatives of LP positions that can be collateralized for additional use cases.
This can include:
▶️ Borrowing / lending
▶️ Staking to derivatives protocols
/10 Thereby, @Entanglefi does not only achieve capital efficiency for users, but also incentivizes sustained (sticky) liquidity for protocols.
/11 Overall, @Entanglefi introduces a number of significant benefits to users & protocols:
▶️ Liquidity Optimization & Capital Efficiency
▶️ Sticky Liquidity for DeFi Protocols (Secondary Utility of LP Assets)
▶️ Yield Accessibility
▶️ Secure information Aggregation
/12 🔮 Entangle's Oracle Solution
@entanglefi's oracle solution is highly customzable.
This allows developers to choose any threshold consensus (e.g., 70% of transmitters must be correct).
The requirements will dictate the number of keepers needed.
/13 A larger number of transmitters increases security but at a higher cost, while fewer transmitters are more affordable but less secure.
Inspired by of Proof of Stake (PoS) consensus mechanisms, @entanglefi has adopted a similar slashing approach to deter bad actors.
/14 Transmitters must stake a certain amount of $NGL tokens to accept "jobs", which may be at risk of being slashed if they provide incorrect information (whether to Entangle or external endpoints).
/15 ⚙️ EVM Integration
Entangle also integrates an EVM Module into its blockchain, ensuring a developer friendly environment.
This allows devs to build contracts in Solidity, enabling powerful cross-chain apps powered by Entangle's oracle & interoperablity infrastructure.
/16 Through adopting this approach, we can provide Liquid Vaults across eight blockchains and expand (currently in testnet), in a cost-effective manner.
/17 Unlike competitors who impose fixed premiums for their services, @Entanglefi differentiate themselves by determining fees based on a %.
This ensures that protocols benefit from a more streamlined experience, enabling them to scale their products with fewer constraints.
/18 🖥 Entangle Web2 Feeds
The data oracle is connected to external data sources.
A set of Transmitters send data proposals to a Controller in the Entangle Blockchain.
/19 The Controller checks the proposal and sends it to a Conductor that delivers the data to a dApp through Circuit.
The dApp performs an action based on the data.
/20 📊 Entangle Price Feeds
The below illustration shows how Transmitter Agents gather and transmit price data from diverse sources to the Price Oracle Contract on Entangle Blockchain.
/21 The Price Oracle Contract monitors for any substantial discrepancies and statistical anomalies, with the aim of generating a median price.
The price is broadcasted to other blockchains once a significant deviation is observed.
/22 🌐 Cross-Chain Messaging
dApps can leverage @entanglefi's Photon messaging layer for generic message passing between different blockchain networks.
Let's have a look at how that works! 👇
/23 1️⃣ A user initiates a transaction, which prompts a dApp to request a cross-chain message through a Circuit Smart Contract.
/24 2️⃣ Transmitter agents relay the request to the Controller Smart Contract on the Entangle Blockchain, where consensus is verified before an outbound request is made to the target chain.
/25 3️⃣ Following this, the Conductor agent delivers the outbound request to the Circuit Smart Contract on the destination blockchain.
The Circuit calls the designated smart contract of the dApp, thereby finalizing the cross-chain message transfer
/26 The NGL Token
Not gonna lie, this one will be big!
@Entanglefi will launch at a low valuation of only USD 45m (just look at the valuations of LayerZero, Wormhole, Axelar or Chainlink).
/27 NGL will be a utility token used for:
⚙️ Staking as an Entangle validator
⚙️ Pay for gas fees
⚙️ Utilizing Entangle as a connected application
/28 🌟 How Entangle Changes the Game
Entangle provides customisable and interoperable data infrastructure, specifically designed to address the complex challenges of cross-chain communication.
/29 Amid the rapid growth in the L2 space and the steeply increasing number of execution layers, we're witnessing a fragmentation of liquidity.
@Entanglefi can supercharge applications, enabling them to tap into liquidity across chains, while optimizing yield for users.
/30 Thanks to its innovative architecture and the native Liquid Vaults, @Entanglefi will unlock billions of dollars in liquidity locked in LP positions and reduce friction between DeFi ecosystems.
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What came next · since 14 Dec 2023
No reliable price feed for $NGL.
Since then
Zero has written 1 more piece on the same subject since this one.
- Entangle: cross-chain messaging, data feeds and liquid vaults, NGL valuationBullish call on $NGL