Euclid Protocol has launched a novel shared liquidity layer aimed at addressing the challenge of fragmented liquidity within the blockchain ecosystem. This innovative layer seeks to harmonize liquidity across diverse blockchain networks, including Cosmos, Solana, and EVM-based networks, by utilizing virtual pools established on Nibiru Chain.
Funding and Support
The company secured USD 600,000 in a pre-seed funding round led by tech investment firm Kahuna Network and angel investor Tomoaki Sato. Other investors associated with Lavender Five, Andromeda, Nibiru Chain, among others, also participated in the funding round. Additionally, Euclid received a grant and liquidity support to bootstrap liquidity within its pools.
Allocation of Funds
The funding raised will be channeled towards various aspects, including the development of architecture and project infrastructure, business development initiatives, audits, and marketing endeavors.
Objectives of Unified Liquidity Layer
Euclid officials emphasize that the Unified Liquidity Layer is designed to offer users a chain-agnostic modular experience, prioritizing scalability and the cultivation of an efficient market environment.
Addressing Liquidity Fragmentation
The blockchain ecosystem has experienced rapid expansion, witnessing the introduction of over 10 new Layer-1 chains in the past year alone. However, the proliferation of DeFi applications has led to fragmented liquidity across different chains, adversely affecting user experience.
Virtual Liquidity Pool Model
Euclid tackles this challenge through the utilization of the Virtual Liquidity Pool (VLP) model, which enables the virtual unification of liquidity across integrated chains without necessitating migration. This model empowers users and developers to monitor liquidity across all Euclid-integrated chains and seamlessly transfer it as required.
Virtual Settlement Layer
The Virtual Settlement Layer (Nibiru) functions as a singular ledger of truth that all Euclid-integrated blockchains can connect to, offering minimal slippage and equitable prices across the ecosystem. Built on Euclid’s LiquiSync model, this framework ensures convenient access to any chain or protocol.
Enhancing Decentralization
Euclid’s initiative to unify liquidity aims to eliminate single points of failure and enhance decentralization, ensuring that liquidity remains evenly distributed throughout the blockchain. This fosters the creation of a decentralized pool on Nibiru for any asset pair deposited into Euclid pools across integrated blockchains.
Expansion Plans
Euclid envisions extending its unified liquidity layer beyond the Cosmos ecosystem to encompass both EVM and non-EVM chains, leveraging protocols such as Inter-Blockchain Communication Protocol (IBC), CCTP, Axelar, and Euclid’s proprietary messaging protocol.
Governance and Revenue Sharing
Supporting the Liquidity Layer framework is $EUCL, the native governance revenue share token. Holders of $EUCL can stake it to receive revenue from protocol fees and participate in governance and the protocol’s treasury. Initially, $EUCL holders will be tasked with voting on incentives, liquidity infusions, and protocol fees, with future initiatives being determined and funded by holders.
