V2 vs V3: Key Differences

Entangle's V3 introduces a crucial enhancement with the EntryUnwrappingModule, a smart contract that marks the initial engagement point for participants.

This module rigorously assesses NFT LP tokens submitted by users, ensuring they meet the protocol's specified criteria, such as price range and pool fee. Upon successful token deposit, users are awarded an equivalent quantity of synthetic tokens, reflecting the liquidity embedded in their LP token.

The protocol has updated its operations, shifting away from previous practices. Currently, users have the capability to withdraw any desired amount of CDT tokens. In response to such withdrawals, the system initiates the creation of a new NFT position, amplifies the liquidity by the requisite amount, and subsequently transfers this newly minted NFT to the user. This modification simplifies the process for regular users, focusing on enhancing their experience within the CDT Protocol ecosystem.

However, the option to withdraw through the conversion to base assets is reserved exclusively for liquidators, distinguishing their privileges from those of regular users.

The introduction of this module is pivotal for accommodating a broader range of NFTs with varying price ranges in the protocol's final version. An additional module will be incorporated to facilitate this, ensuring seamless integration with the core contracts, which require base assets in the correct proportion.