Connext changes its name to Everclear and launches the first global settlement layer protocol to solve the problem of liquidity fragmentation in a mo

Original source: Everclear

Everclear becomes the first clearing layer to solve the fragmentation problem of modular blockchains by coordinating global liquidity settlements between chains.

Connext, the leading protocol for blockchain interoperability, announced that it has changed its name to Everclear, aiming to build the first settlement layer of Web3 to solve the liquidity fragmentation problem of modular blockchains. To this end, the protocol has also completed a $5 million private fundraising with Pantera Capital to diversify its DAO.

The problem of modular fragmentation

As L2 becomes faster, cheaper, and easier to launch than ever before, more and more new chains are emerging, with 53 chains currently in operation and even more to come. This situation has led to a more obvious liquidity fragmentation problem in the user experience.

Last year, the Everclear (formerly Connext) team introduced Chain Abstraction , where users don’t need to care at all which chain they are operating on. That’s because there are now teams working on this outcome, primarily using a technology called intents, which allows users to simplify management and outsource the complexity of multiple chains, paying gas fees, and using cross-chain bridges to third-party service providers, also known as solvers.

While cross-chain intents are growing in popularity, the process only supports a small number of ecosystems and remains very centralized , primarily due to the cost and complexity of rebalancing assets between chains.

To truly solve the fragmentation problem, intentions need to be combined across every chain, every asset, and every application, said Arjun Bhuptani, co-founder and chief researcher of Everclear Foundation. The current cost and complexity of liquidity management needs to be reduced so that all market participants can manage liquidity more efficiently, not just the largest market makers.

Global Settlement Layer Solution

The Everclear team believes that a range of issues related to fragmentation in the blockchain industry, such as solver rebalancing, the complexity of building liquidity on new chains, the trend of deploying copies of dApps on each chain, and the general lack of support for L2 by centralized exchanges, are actually different manifestations of the same core problem, that is, current market participants are fighting each other in a state of isolated PVP in managing liquidity across chains.

However, on average, the two-way liquidity flow between chains is quite balanced. Specifically, more than 80% of daily transaction volume can be offset between chains. In other words, if $100 of funds are transferred into Arbitrum every day, there will usually be about $80 of funds transferred out.

Everclear introduces a new foundational concept, the settlement layer. The settlement layer is a public network that allows users to coordinate and process net settlement of capital flows between chains. It serves as the foundation of the emerging chain abstraction stack, providing optimal liquidity and settlement for intent protocols, solver networks, market makers, and centralized exchanges.

Everclear expects that by combining net settlement and integrating settlement methods for specific assets and ecosystems, such as CCTP used by USDC, its system can reduce the cost and complexity of solvers (and other cross-chain liquidity management solutions) by up to 90%. Everclear is a modular system consisting of an open intent solver network and Everclear chain, as well as an Arbitrum Orbit rollup that uses Hyperlane and Eigenlayer as underlying technology to connect to other ecosystems.

Pantera Capital partner Lauren Stephanian said that she is pleased to support Everclear in its mission to simplify blockchain interoperability. She also believes that this innovative settlement layer will change the way liquidity is managed across modular blockchains, directly improving the user experience and the operational efficiency of the entire ecosystem.

Before changing its name to Everclear, Connext TVL exceeded $1 billion, with monthly cross-chain bridge transaction volume exceeding $500 million, while maintaining 99.4% network uptime. This explosive growth was due to Connext's expansion to support 10 chains and the launch of the "Restake from Anywhere" module in cooperation with Renzo Protocol.

Everclear’s testnet is live today, with mainnet planned for early Q3.

Everclear is live with strategic partners including Eigenlayer, Arbitrum, Hyperlane, and Gelato. It brings together backers including Polychain, Consensys, 1kx, Ethereal Ventures, Coinbase Ventures, Polygon Ventures, Hashed, OKX, NGC, KX Bank, Huobi, a_capital, Edge and Node, eGirl Capital, Dokia, IOSG, Metacartel Ventures, Figment, Scalar Capital, and No Limit Holdings. Ecosystem partners include Renzo, Metamask, Alchemix, DappRadar, LiFi, Socket, AltLayer, Gnosis Zodiac, and Lucid. Infrastructure partners include The Graph, P2P, and BWare.

About Everclear

Everclear is building the first settlement layer for Web3. Everclear solves the fragmentation problem for modular blockchains by coordinating global liquidity settlements between chains. Everclear aims to build an open and accessible future where users can enjoy the benefits of blockchain without expertise or unnecessary risk.

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This article comes from a contribution and does not represent the views of BlockBeats

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