- Euclid Protocol proposes unified liquidity to connect the $98 billion in DeFi capital split across blockchains to improve pricing and depth.
- Instead of bridges and aggregators, the concept of unified liquidity favors a single liquidity layer where trades from different chains draw from the same pool.
- Euclid Protocol is launching Phase 2 of its mainnet to test unified cross-chain liquidity under real market conditions.
Euclid Protocol has presented its unified liquidity strategy as the solution to the DeFi liquidity fragmentation problem called out by industry leaders, such as Vitalik Buterin.
The March 10 launch of its second phase private mainnet is being pitched as the resolution to the argument that decentralized platforms should feel like an ecosystem and not a series of separate networks.
What problem does unified liquidity solve?
Unified liquidity advocates for one shared pool that serves trades from many networks. Therefore, liquidity stays deep instead of getting chopped into pieces.
Some of the current challenges in the market are due to fragmentation, which is often treated as a routing problem.
Currently, the $98 billion in total value locked (TVL) across DeFi protocols such as Aave and Lido, with close to $56 billion of that parked throughout Ethereum and its L2 networks.
The current solutions provide fixes that lack depth. Bridges move assets between chains, aggregators find the best path across fractured pools, and intent-based protocols allow users to express their intent and delegate execution to solvers.
Each of these tools reduces friction for the end user, but none of them creates depth. There’s also the issue that hackers often target these bridges in hacks due to the high traffic from users moving funds around the DeFi ecosystem.
For example, USDC on Ethereum and USDC on Arbitrum are not the same, and this liquidity gets spread thinner each time the asset shows up on a new trading venue.
With unified liquidity, there is one pool; the prices are formed inside that liquidity pool, and it is accessible to many networks without rebuilding liquidity from scratch each time.
Under this model, for example, a trade initiated from Ethereum and one initiated from BNB Chain pull from the same pool. It enables a protocol to grow its reach without running a fresh liquidity campaign from scratch.
For new token launches, this means platforms can launch once and do not have to rebuild liquidity elsewhere. This is the central idea behind Euclid’s solution.
Euclid to validate unified liquidity solutions as it launches its mainnet
Euclid Protocol is launching the second phase of its private mainnet on March 10, as it works on validating unified markets under production realities.
It rolled out the first phase of its mainnet on February 24 to registered Euclid Passport holders with live transactions across real networks.
The platform came up with a testnet baseline of over 18 million transactions and 350,000 monthly active users. However, it reportedly discovered different failure modes during production.
Euclid Protocol aims to become a liquidity consensus layer, a venue where price forms.
The phase 2 mainnet launch, which the platform calls the real stress test, is expected to be used by a larger community to test the depth, execution quality, and stability of the platform under load.
Three products will be live in this second phase. The first is the Euclid Swap, which allows cross-chain trading while assets remain on their native networks. The second is the Euclid Launch, which gives token creators immediate access to the shared liquidity pool at launch, and finally, the Planet Euclid, the protocol’s missions and rewards layer.
Passport minting is permanently closed at 155,000; however, access is still available via secondary markets.
