- The fragmented liquidity problem of DeFi is addressed by Euclid’s VLP model.
Euclid Protocol announced the creation of its shared liquidity layer, which powers virtual pools built on Nibiru Chain and links the Cosmos, Solana, and Ethereum Virtual Machine-based ecosystems. The goal of this endeavor is to bring disparate liquidity within the blockchain ecosystem together.
The announcement draws attention to the decentralized finance (DeFi) ecosystem’s fractured liquidity. These monies are dispersed throughout DeFi, even though their total value locked (TVL) is close to $136 billion.
To retain modularity and accessibility, Euclid’s Virtual Liquidity Pool (VLP) concept essentially unifies liquidity without the need to physically shift it. Liquidity can be tracked and moved seamlessly amongst all connected chains thanks to the VLP.
Furthermore, a single source-of-truth ledger is produced by utilizing Nibiru Chain as a Virtual Settlement Layer (Nibiru) to build those pools. This ledger unites all integrated blockchains and, by virtue of the LiquiSync model—a framework that permits any chain or protocol to link permissionlessly—offers low slippage and equitable pricing throughout the ecosystem.
The announcement comes after a lucrative $600,000 pre-seed financing round that was spearheaded by angel investor Tomoaki Sato and Kahuna Network, with additional backing from Lavender Five, Andromeda, and Nibiru Chain associate angels.
To prepare its pools for future use, Euclid also obtained a grant and liquidity backing last month. The project’s architecture development, commercial growth, audits, and marketing initiatives are all planned to be supported by these monies.
Euclid plans to use protocols like IBC, CCTP, Axelar, and its own messaging protocol to expand its liquidity layer to incorporate both EVM and non-EVM chains. EUCL, the native governance revenue sharing token, will support the framework and enable holders to use the protocol’s treasury, stake, and collect protocol fees.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.