Start/ @EverclearOrg launched yesterday and is the first Clearing Layer that coordinates the global settlement of order flows between chains, solving liquidity fragmentation for modular blockchains. Let’s take a deeper look at what intent bridges are, and why Everclear is the silver bullet. @PanteraCapital
veradiverdict.com/p/clearing-layer
2/ There are dozens of active L1 blockchain and with the advent of rollup services, the number of L2 chains has also exploded. Reducing the tradeoffs of moving crypto across chains unlocks value for all chains, improves user experience, and creates tighter spreads for users.
3/ Current crypto bridges face a trilemma between being fast, cheap, and permissionless.
• Custodial Bridge: Instant and cheap, but not permissionless.
• Permissionless Bridge: Somewhat fast, but not cheap. If wrapped tokens are generated, they can be permissionless, but are not trustless.
• Intent Bridge: Current solutions are permissionless, but are often slow and not significantly cheaper than permissionless bridges because of rebalancing. They also are limited to high volume tokens.
Intent bridges have the possibility of solving the trilemma, but face issues of liquidity fragmentation, lack of standardization, and rebalancing costs.
4/ Intent bridges take advantage of the insight that 80% of cross-chain volume is “netted” within 24hrs, meaning that across all chains, for every dollar that leaves a chain, 80 cents returns within 24hrs. There is always volume going in and out of chains, but for 80% of it, the net volume ends back where it started.
5/ The core problem that Everclear solves is that this perfect match rarely happens. When it does not, the protocol has to “rebalance” by moving the residual the slow way through traditional custodial or permissionless bridges. This is slow, complicated, and expensive.
6/ The main stakeholders in intent bridging are:
• Chains (Permissions), who want integration with bridges, which is a typically lengthy process
• Protocols (Auctions) who have the orderflow of intents, but are limited to their own orderflow
• Market Makers (Solvers) fill the intents on certain chains, but have no efficient way to rebalance
7/ Everclear is the silver bullet that standardizes this process for everyone. Users generate an “invoice” of their intents, which solvers can balance against each other. If no one takes an invoice after a certain amount of time, a dutch auction begins for the invoice (a 10 ETH intent degrades to 9.99 ETH, until a solver fills the intent).
8/ Everclear intends to benefit everyone; this standard benefits all stakeholders and creates a permissionless system that aggregates the orderflow of apps, gives market makers more orderflow to maximize netting, and works with any chain with this standard set of smart contracts.
End/ Everclear’s Mainnet launched yesterday (September 18). To learn more and get involved, check out their blog everclear.org/blog/everclears-mainnet-beta-is-live for details to learn more or participate.