Entangle Review: Profit Optimizer For Liquid Staking Tokens
Entangle is launched as a liquidity-focused subclass that empowers infrastructure that drives seamless interoperability for synthetic vaults, with the project breaking down barriers to a prosperous DeFi future, creating composable, secure, and scalable cross-chain applications to eliminate liquidity and margins. In this Entangle review, let’s find out through the article below.
What is Entangle?
Entangle is an oracle-central subclass that optimizes cross-chain liquidity through liquidity staking derivatives. The project is future-oriented with no barriers where protocols on every chain are interconnected, reducing the inherent complexity of DeFi from a user and developer perspective.
To usher in a new generation of DeFi dApps, Entangle builds an interoperable cross-chain liquidity sublayer with a custom oracle solution to power the native dApp, Synthetic Vaults. Through Synthetic Vault, protocol utilizes Liquidity Staking Derivatives to enable access to liquid locating assets on any chain from any chain with a single click.
What problems does Entangle solve?
As of now, DeFi is still active because there is liquidity to promote transactions. In fact, it is liquidity that moves the market and drives growth. However, DeFi still needs to work on liquidity fragmentation.
Liquidity is isolated and does not flow freely between protocols, affecting projects and users. This is where it comes in. This protocol aims to raise the standard of providing cross-chain liquidity and capital efficiency through a liquidity-focused sublayer that supports native and external applications. The platform is solving three long-standing DeFi problems:
- Siloed & Illiquid Capital
- Capital Inefficiency for Liquidity Providers
- Lack of Sticky Liquidity
- Expensive Oracle Solutions force many dApps to rely on centralized scripts
Most other protocols are solving similar problems, but Entangle’s approach is unique. This protocol turns the liquidity offering and subsequent rewards into a fun and accessible experience that lays the groundwork for improving user adoption.
The project achieves this through the user-friendly interface of a DEX with a limited order book known as an “internal DEX”, where users can exchange USDC and Synthetic Vault (Place Derivatives) liquidity stake of Cross-chain Liquidity Provisioning Asset).
Cross-chain functionality is a core component of DeFi that Entangle simplifies so that scalable, trustless transactions can add interactivity.
The removal of user accessibility barriers indirectly helps solve the problem of Affected Liquidity, as Synthetic Vaults allow users to provide liquidity to any protocol on any platform, any sequence, with a single click from their base sequence. Users will not have to go through countless hurdles like creating new wallets, adding new RPC Networks, connecting assets, and automatically pooling their positions daily for maximum rewards.
Who is Entangle for?
- Draw liquidity from any chain through Synthetic Vault.
- Gain liquidity through the Liquid Bet Derivatives Secondary Utility.
- Access profit opportunities on any chain from any chain.
- Super high yield achieves efficient use of capital.
- Using Entangle Oracles: Cross-chain optimization and scaling.
- Flexible and complex logic calculations on strings.
Entangle Review: Infrastructure
The Synthetic Vaults dApp provides access to cross-chain LP provisioning yields from any chain through a subset of Internal DEXes on each chain within the Entangle Framework. Synthetic Vaults are Liquid Staking Derivatives minted 1:1 based on held Liquidity Pool Vaults on another chain, where prices of Synthetic Vaults are pegged to the underlying Liquidity Pool Vaults.
Synthetic Vaults can be representations of the underlying Liquidity Pool Vaults, such as:
- Liquidity Pools on DEXes (for example, AVAX/USDC pair on TraderJoe)
- Lending & Borrowing Pools (for example, USDC lending & borrowing pool on AAVE)
- Staked Tokens (for example, staked stETH)
The amount of Synthetic Vaults is “finite,” meaning that even if the amount of Liquidity Pool Vault Tokens rises in the amount due to auto-compounding, no new Synthetic Vaults Tokens are minted. Additional Synthetic Vault Tokens can only be minted on the basis of additional new Liquidity Pool Vaults Tokens obtained.
Currently available on Avalanche, Polygon, Ethereum, BNB, Fantom, Optimism, Arbitrum, and MultiVersX. It allows for optimal use of liquid assets (xLSDs) across multiple chains.
Composite Vault benefits protocols and users with several use cases:
- Protocols can solicit liquidity from users on previously unreachable chains.
- Stable and loyal liquidity through users collateralizing the Synthetic Vault for secondary use cases, such as staking on derivative protocols.
From there the user can:
- Deposit to any desired Liquidity Vault on any.
- Save time automatically compound interest and skip countless transactions, bridges, and fees.
- Earn LP Fees through Aggregate Vault’s price accumulation.
- Efficient use of capital.
To start with Entangle review, Blockchain is built using Cosmos SDK (including IBC portability and EVM compatibility), which has Tendermint Core Consensus Algorithm to reach agreement between Validators.
It is a highly specialized Oracle Centralized Blockchain whose sole purpose is to store information for Entangle’s Distributed Oracle Solution and validate Oracle messages. This Blockchain has low gas fees because it is highly specialized for Oracles and has less transaction time.
To facilitate its Distributed Oracle Solution and provide developer-friendly environment, Entangle review has integrated EVM Module inside Blockchain, making it EVM Compatible where Developer can create contracts in Solidity.
Distributed Oracle Solution
Entangle’s Distributed Oracle Solution is validated on the Entangle Blockchain, opening up many possibilities that the traditional Oracle Solution does not provide.
The Developer SDK Network (Q2-Q3) wants to integrate Entangle’s Oracle Solution for their dApp(s). 3rd party developers/dApps can integrate its Oracle Solutions in their dApp for claims.
- Decentralized collection of verifiable information in Off/On-Chain and Omnichain Environments.
- Oracle Automation Solution on any String.
- Provide information with environmental characteristics.
Entangle’s distributed Oracle solution includes different participants with different roles:
- Full Node Launcher & Validator.
- Distributor (3rd Party Developer requires Entangle Distributed Oracle Solution).
- Keepers (Participants in data aggregation).
This protocol launched internal DEXs on every chain in Entangle Framework. Internal DEX is an automated limit order book with a combination of Synthetic Vault and USDC.
The prices of the Aggregate Vaults traced over time periods through Entangle Oracles correlate with the price of the underlying Aggregate Liquidity Vault. The USDC Pool is shared among the Synthetic Vault Pool for instant liquidity, scaling, and rebalancing purposes.
Synthetic LP tokens are synthetic representations of LP tokens. A Synth-LP is backed by an auto-compounding physical liquidity position (LP) that exists on a different chain to the Synthetic representation. This is how Entangle produces cross-chain opportunities for the network.
Synth-LPs are minted on the Entangle network while the protocol verifies the staking of a corresponding LP token and reinvests the rewards received. By automating the process of depositing Liquidity on various chains, users enjoy a simpler experience in providing liquidity and are exposed to fewer risks involved in self-bridging.
Entangle Review: Revenue and distribution plan
The protocol’s revenue will come from:
- 10% Fee derived from the auto-compounding process of Liquidity Pool Assets backing Synthetic Vaults.
- 10% Fee derived from staked Synthetic Vaults to Secondary Protocols.
- 0.25% Internal DEX Trading fee (applied when users exchange between Synthetic Vaults).
- Blockchain Gas Fees – 10% of Gas Fees is distributed to Entangle Protocol.
- Keeper (Oracle) Fees – 15% of Fees paid by Distributors (Developers) is given to Entangle Protocol.
The total revenue is distributed towards:
- 40% for Oracle Keepers.
- 38% Staking Rewards.
- 22% 12-Month Lock for Future Development & Marketing.
Entangle Review: Token $ENTGL
The Entangle Token, $ENTGL, is a gas token native to the Entangle Blockchain – an ERC20 representation of $ENTGL will also be available on other blockchains.
The token includes staking functionality for transaction validation and network security, is distributed symmetrically with accumulated revenue, and possesses inherent governance rights that enable protocol-driven voting. Furthermore, a large portion of any additional revenue accrued is used to redeem and burn native Entangle tokens.
In addition, the $ENTGL token is issued only to users with an active stake in the protocol. There are two ways to earn this tokens. Both come with revenue-generating activities that support the growth of the protocol to attract higher TVL.
$ENTGL Token Distribution
- Earn protocol revenue through staking.
- Staking as a Validator or Authorizer to ensure the security of Entangle Blockchain.
- Run an Oracle Keeper.
- Use Entangle Oracle solution.
- Gas Fees on Entangle Blockchain.
Entangle Review: Road map
Q1 2023: Testnet V1
Synthetic Vaults dApp
- 7 EVM Chains
- Cross-Chain LP LSDs
Entangle White Paper V.2
Q2 2023: Entangle Testnet V2
Entangle Oracle Solution
- TWAP R&D
- EVM & Non-EVM Chains
- Lending & Borrowing
Entangle Oracle Solution
- ZK R&D
Additional Protocol Integrations
- EVM & Non-EVM Chains
- Additional Utilities for LSD
DeFi is constantly evolving, and if we want to grow and attract more users, we need to promptly address the urgent needs of the ecosystem. In other words, full-chain liquidity is one such solution. This is important because it is a double-edged sword, allowing users to maximize the return on their assets and allowing the protocol to initiate liquidity faster.
Entangle Protocol, a revenue optimization engine for LST (Liquidity Staking Token), which increases user LST revenue by 1-3x, and token economy studies have been introduce.
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DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.