We Hate Bridging: Why Liquidity ‘Stays Native’ with Euclid Protocol

Euclid Protocol
4 min readFeb 3, 2025

Bridging has become the go-to method for moving tokens across chains in DeFi, but let’s be honest — it’s far from ideal. It’s slow, expensive, and worst of all, a security nightmare.

At Euclid Protocol, we believe there’s a better way. Instead of forcing liquidity to migrate across chains, we’ve built a system where liquidity always stays native — no wrapping, no bridging, and no unnecessary risks.

The Problem with Bridging

Most bridges work by locking tokens on one chain and minting a wrapped version on another. While this allows for cross-chain transactions, it introduces serious issues:

  • Security Risks — Bridges are prime targets for hackers, with billions of dollars lost to exploits.
  • Liquidity Drain — Moving assets off-chain weakens the liquidity of the original network.
  • High Costs & Delays — Bridging involves multiple transactions, high fees, and slow confirmation times.
  • Centralization Concerns — Most bridges rely on centralized validators, creating trust issues and single points of failure.

Bridging might enable interoperability, but at what cost? At Euclid, we knew there had to be a smarter way.

The Euclid Solution: Native Liquidity, Unified Access

Euclid eliminates the need for bridging altogether, keeping liquidity where it belongs — on its original chain — while still allowing seamless cross-chain swaps.

Here’s how it works:

Escrow-Based Liquidity

  • Each chain connected to Euclid has an escrow contract that holds tokens natively. These escrows can release or receive tokens but never transfer them off-chain.

Cross-Chain Swaps Without Bridging

  • Instead of locking and wrapping assets, Euclid facilitates swaps by releasing existing liquidity on the destination chain. Example: If you swap 100 Token A (on Chain A) for 50 Token B (on Chain B), Token A goes into escrow on Chain A, while 50 Token B is released from escrow on Chain B.

Here’s how the transaction unfolds in detail:

  1. The user initiates the swap and 100 A tokens are sent to the escrow contract on Chain A.
  2. Euclid’s messaging protocol sends an IBC message to Chain B, instructing the escrow contract there to release 50 Token B to the user.
  3. The user receives 50 Token B on Chain B, completing the swap.

The 100 Token A now sitting in escrow on Chain A becomes available for future swaps in the same manner.

Sustainable Liquidity — Token Availability

  • Token B in escrow on Chain B comes from other users swapping into that chain. Euclid constantly balances liquidity through natural swap flows, avoiding liquidity fragmentation. Tokens are always available for release within the Euclid ecosystem. If liquidity on a specific chain is temporarily constrained, you can still access the token on another chain within Euclid. Users always have access to the tokens they need, while maintaining the integrity and balance of liquidity across the network.

Why Native Liquidity Matters

No More Bridge Hacks — Since tokens never leave their native chain, there’s no risk of exploits draining cross-chain liquidity pools.

Preserved TVL for Chains — Liquidity remains on-chain, ensuring networks integrated with Euclid retain their Total Value Locked (TVL).

Frictionless Cross-Chain Access — Users can seamlessly swap assets across chains without dealing with wrapped tokens or waiting on bridge transactions. While the escrow can be messaged from any chain to initiate a release, the release itself always happens on the chain where the escrow resides.

A Better Path Forward

Euclid Protocol is Unifying Liquidity by redefining cross-chain interoperability. We don’t believe DeFi should rely on risky, inefficient bridges. Instead, we’ve built a system where liquidity stays native — secure, efficient, and always accessible. Ready to experience seamless cross-chain swaps without the risks? Try Euclid today. Whether you’re a network, DEX, or lending platform, Unified Liquidity is the next step in DeFi’s evolution.

To go deeper into how Euclid works, check out this article or visit our documentation.

Euclid Protocol’s vision is to bring users back to the fundamentals of DeFi — empowering users with transparency, accessibility, and control over their financial activities — making DeFi great again!

Check out our X feed thread for more insights and updates. Additional links to our socials are here: TG Web Blog

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Euclid Protocol
Euclid Protocol

Written by Euclid Protocol

Modular, Accessible, Unified Liquidity Layer

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