Euclid Protocol Deep Dive — Unifying Liquidity
Euclid Protocol is more than just a DeFi platform — it’s a ground breaking solution that unifies liquidity across the web3 ecosystem without relying on traditional bridging. Designed to consolidate liquidity across the Cosmos, EVM-compatible chains and non-EVM chains like Solana, Euclid transforms isolated liquidity pools into a readily accessible, shared resource. For web3 developers, dApp builders and DeFi enthusiasts, Euclid Protocol offers a solution to one of DeFi’s biggest challenges: liquidity fragmentation.
The Problem: Fragmentation
For years, DeFi’s promise has been undermined by siloed liquidity pools across dApps and blockchains. The result? Value is locked in a handful of chains and large protocols, stifling innovation and limiting user access. As Euclid’s founder, Georges Chouchani, explains:
“Fragmentation is the zero-sum game that’s really hurting DeFi. 90% of on-chain assets sit idle, failing to generate yield. DeFi was exciting for its potential, but today’s fragmented reality restricts financial freedom.”
The Solution: Euclid’s Unified Liquidity Layer
Euclid Protocol removes this barrier by creating a unified liquidity layer. By integrating with Euclid, dApps can access a global liquidity pool, eliminating the need for inefficient and costly bridges. In this ecosystem, users and developers benefit from the liquidity depth and seamless asset transfers across chains.
Key Euclid Protocol Features
Euclid Protocol is truly decentralized — removing the inherent risks to users’ assets from being held within custodial ‘CeFi’ — centralized finance — platforms.
Unified Liquidity Layer
Euclid’s liquidity layer combines assets from multiple blockchains into a shared pool, increasing trading opportunities and enhancing liquidity for dApps. At its core, Euclid leverages the Euclid Messaging Protocol (EMP) to facilitate smooth communication within its smart contracts. Any chain and any dApp from any network will be able to integrate with Euclid and access its liquidity.
Cross-Chain Interoperability
The Euclid Messaging Protocol is built on top of IBC, but goes way beyond it — supporting cross-chain operations for Cosmos, Ethereum (EVM), Solana, and more. Developers can now integrate seamlessly across multiple chains without bridging or wrapping tokens.
Security
With Euclid, every cross-chain transaction either completes in full or not at all. Once confirmed, the transaction is instantly finalized and securely recorded across all participating blockchains, ensuring transaction integrity and immediate finality. User funds will never be ‘stuck’ in any smart contract on any blockchain.
Scalability and Modularity
Euclid supports high throughput, meeting the needs of small projects and large-scale platforms. Its architecture can be customized for different blockchains and easily integrated via Euclid’s API or directly through smart contracts.
How Euclid Protocol Works
Euclid Protocol operates through three main mechanisms. If you’d like to go deeper into any of the below, please visit our documentation page.
- Unified Liquidity Pools (Virtual Settlement Layer):
Liquidity from all chains are available as a single resource, reducing slippage and maximizing asset utilization. The Virtual Settlement Layer (VSL) is the core of the Euclid system, responsible for for managing liquidity, optimizing asset utilization, and ensuring instant finality. Security measures guard against vulnerabilities like double-spending and 51% attacks.
2. Cross-Chain Messaging (Euclid Messaging Protocol):
EMP — Euclid Messaging Protocol, simplifies cross-chain asset access. EMP is a cross-chain system enabling communication between pools and their Virtual Pool counterparts, allowing the Euclid layer to track activity across chains. EMP is built on top of IBC, but goes beyond it — extending support to ecosystems such as Ethereum and Solana.
3. Smart Contracts:
A set of smart contracts deployed on each integrated chain responsible for pool creation and communication with the Virtual Settlement Layer using EMP. Below is a summary of the key details.
Factory Contracts act as the sole communication hub between chains and the VSL. The Factory smart contract serves as the core component for managing user interactions with liquidity pools and performing swaps.
Escrows are a simple, single-token contract deployed on each integrated chain to hold liquidity. When a swap succeeds, the chain’s Factory contract instructs the escrow, via the router, to release tokens to the user.
Router is a core component of the Euclid layer, managing liquidity pools and coordinating swaps across chains. It routes requests between the Virtual Settlement Layer and the integrated chains to ensure smooth operations.
Making DeFi Great Again — For Everyone
By solving the fragmentation problem, Euclid brings tangible value to the whole DeFi ecosystem.
For Users: Smoother cross-chain transactions that cut down on slippage and transaction fees. No more bridging.
For Builders: A unified liquidity pool that spans across chains. With easy-to-use APIs, you can focus on innovation, not infrastructure.
Integrate with Euclid: More Liquidity, Less Complexity
Euclid offers simple integration steps for developers, via our API or directly via our Factory contract. This saves time and cost for internal dev teams, with our API being simple enough for a web2 developer to integrate Euclid. By deploying a smart contract and setting up a relayer, dApps can connect with Euclid’s unified liquidity. Any of these integrations will instantly bring access to all liquidity in the Euclid network, reducing the zero-sum challenges of chain-specific liquidity.
What’s next?
The coming 12 months will see a huge expansion of Euclid’s capabilities as it reaches out across web3 to make DeFi omnichain rather than limited to individual blockchains. Below are some highlights, with regular updates available to those joining our TG community.
Join the Euclid Community
Euclid Protocol is on a mission to make DeFi efficient, scalable, and accessible. If you’re interested in learning more or integrating Euclid with your dApp or chain, get in touch!
Check out our X feed thread for more insights and updates. Additional links to our socials are here: TG Web Blog. If you’d like to go deeper into any of the tech stack, please visit our documentation page.
