Liquid Vaults

Liquid Vaults, a dApp native to the Entangle stack, optimises liquidity by leveraging yield-bearing assets via asset-backed composable derivative tokens (CDTs) supported by Entangle Data Feeds. These Liquid Vaults allow LP assets to be utilized across different protocols, such as serving as collateral in Lending & Borrowing platforms or augmenting yields.

The Challenges of Liquid Staking Derivatives

The Ethereum merge introduced staking capabilities, allowing users to stake their ETH to earn rewards and participate in transaction validation. However, this innovation came with hurdles. The requirement of a 32 ETH minimum stake, is a significant barrier for many. Moreover, this staking mechanism necessitates locking up ETH until the Shanghai upgrade is complete, limiting accessibility to those with ample capital willing to immobilize their funds for an extended period.

Current liquid staking solutions, such as Lido Finance and Rocket Pool, have made strides in addressing Ethereum's staking barriers by enabling pooled staking and offering synthetic derivatives as liquidity. Lido, dominating 73% of the liquid staking market, and Rocket Pool, offering both tokenized and node staking options, have simplified the staking process.

However, their solutions are primarily focused on a select few tokens and Ethereum-based staking, neglecting a vast array of tokens, especially those on non-EVM chains. This specialization results in a narrow scope of staking options for users and overlooks the potential of approximately 25% of total value locked in non-EVM chains, highlighting a significant inefficiency in the broader staking ecosystem.

How Does Entangle Fix this?

Through Synthetic Vaults, Entangle empowers users to deposit yield-bearing tokens and receive synthetic derivatives.

This innovative mechanism positions Entangle as a versatile solution in the liquid staking domain, addressing the current market's limitations by providing a wide array of choices and seamless asset mobility across different blockchains.