New Project Preview | Entangle Protocol: LST Yield Optimizer
New Project Preview | Entangle Protocol: LST Yield Optimization
Encrypted KOL Viktor DeFi recommends the new project Entangle Protocol, which can serve as an income optimizer for LST, increasing users’ LST earnings by 1-3 times. The project analysis covers the problems it solves, protocol mechanism principles, product, use cases, token economics, and team background. The project is currently in the testnet phase.
Entangle aims to promote cross-chain liquidity supply and fund efficiency standards by providing support to native and external applications through a liquidity-centered sublayer. The protocol is addressing three long-standing problems in DeFi using the Entangle blockchain and distributed oracle: 1) isolated and dispersed liquidity, 2) lack of liquidity preservation in protocols, and 3) low fund efficiency for users. The Entangle blockchain is built using Cosmos SDK and is designed to allow smooth connections between EVM and non-EVM blockchains, as well as facilitate oracle transactions.
The Entangle Distributed Oracle Solution (EDOS) is an engine that supports cross-chain dApps and synthetic vaults on the platform. EDOS eliminates security risks associated with using third-party bridges and oracle solutions, making Entangle more efficient and effective. The synthetic vault is a native dApp of Entangle, currently launched on Avalanche, Polygon, Ethereum, BNB, Fantom, Optimism, Arbitrum, and MultiVersX. It allows for optimized use of liquidity position assets (xLSD) across multiple chains.
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An example of how to increase returns is that Pete provides liquidity on Curve and receives an LP token as a reward. He stakes it on Entangle, and then Entangle automatically reinvests the LP token on Convex for additional returns. After this, Entangle issues LSD for the LP token to Pete to hedge another protocol’s loan/borrow. This doubled or even tripled Pete’s cryptocurrency asset yield and gained returns in multiple aspects. This means that Entangle can easily be integrated as an LST yield optimizer in the LSD narrative, and users do not need to rely on their LST yield layer, but can unlock more layers using the synthetic vault.
Entangle infra is not only applicable to users but also reveals innovative use cases for dApps and builders. It allows them to launch protocols through sticky liquidity, utilize yield strategies, and establish games and prediction markets via EDOS.