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Liquid Vaults

Liquid Vaults is the native dApp built on the Entangle stack, optimizing liquidity through refinancing of yield-bearing assets.

Overview

In a fragmented DeFi ecosystem, where DEXs, Lending, and Derivative protocols operate in isolation, Liquid Vaults eradicate capital inefficiency and empower a new spectrum of DeFi strategies.
Liquid Vaults optimizes liquidity by enabling wider utility of yield-bearing assets, achieved through 1:1 Asset Backed Liquid Staking Derivatives (LSDs) supported by Entangle Data Feeds.
Examples are Lending & Borrowing and Derivatives Protocols, where users may deposit Liquid Vaults as collateral to borrow assets or supercharge yield. A live implementation is explored at the end of this section.

Availability

Liquid Vaults is deployed on 9 Networks with the following DEXs integrated:
Network
DEX
Ethereum
BNB Chain
AVAX
TraderJoe
Polygon
Stargate
Fantom
Optimism
Velodrome
Arbitrum
Stargate
Mantle
FusionX
MultiVersX
AshSwap

Use-Case: Lending & Borrowing

A live implementation showcasing the utility of Liquid Vaults is available on Mantle Testnet with the DEX FusionX and L&B Protocol Vendor Finance.
An in-depth guide can be found here.
Users can collateralize Liquid Vaults, composed of yield-bearing FusionX LP Tokens, within the Lending & Borrowing Protocol Vendor.finance. Here they can either borrow stablecoins whilst earning on the underlying liquidity position, as illustrated below:
The image below shows the vendor.finance interface, where a user collateralizes Liquid Vaults to borrow USDC. "FMDUC" is the ticker of a Liquid Vault, representing the DAI/USDC LP Token of FusionX.

How it works:

  1. 1.
    User provides liquidity to FusionX and obtains an LP Token in return as a receipt.
  2. 2.
    User stakes LP Token via Entangle.
  3. 3.
    Entangle stakes and auto-compounds LP Token. User is issued a Liquid Vault in return as a receipt.
  4. 4.
    Users collateralizes Liquid Vault to borrow USDC via Vendor.Finance.

If you encounter any issues or require assistance, do not hesitate to reach out to the Entangle team or the community for support via the Entangle Discord channel.
Last modified 1mo ago