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	Curve Finance
BNB Chain	PancakeSwap, Wombat Exchange
AVAX	TraderJoe
Polygon	Stargate
Fantom	SpookySwap, Stargate
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. User provides liquidity to FusionX and obtains an LP Token in return as a receipt.

2. User stakes LP Token via Entangle.

3. Entangle stakes and auto-compounds LP Token. User is issued a Liquid Vault in return as a receipt.

4. Users collateralizes Liquid Vault to borrow USDC via Vendor.Finance.

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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.